Tomato
The One Pager Business Plan for Tomato
The One Pager Business Plan (Tomato)
Presented in bite size and easy to understand language, The One Pager Business Plan highlights the basic insights and considerations that helps you to decide if and how to engage in agricultural ventures.
Tomato in The World
According to FAO total world tomato production for both processing and fresh consumption in 2021 amounts to just over 189.1 million metric tonnes, up 2% from the 184.8 million mT grown in 2020 and 4% from the average (182.7 million mT) of the previous three years (2018 – 2020). China is the highest producer of tomatoes with 67.5 mT followed by India with 21.1mT and Turkey with 13.0 mT.
Tomato in Nigeria
Tomato is one of the key vegetables in Nigeria, it is grown and consumed all over the country. Nigeria ranks second in Africa with about 3.5 mT tomato production and 10th in the world, Egypt is the highest producer in Africa with 6.2 mT (FAO2021)
Tomato Value Chain
Goverment AID Multilateral, etc.
Seed Fertilizer services, etc.
You-Farmer Labour services, etc.
Manufacturer Marketing Distribution, Export etc.
Industry Consumer Export Trader, Etc.
Dry Season Calendar Pattern for Tomato Production
Wet Season Calendar Pattern for Tomato Production
SWOT Analysis
Strength: Available base resources of land, labour and technical know-how, well known in local and international markets
Weakness: Financing of new entrants may be difficult and climate change is a weakness.
Opportunity: Growing market due to international recognition
Threat: Global economic downturn, bad weather cum natural disasters (draughts, epidemics), unfavourable government policies and the arrival of a competitor.
PESTLE Analysis
Political
Economic
Social
Technology
Legal
Environment
Technical Consideration
Tomato is a warm-season plant that requires adequate sunlight for optimum production. It can be planted in the wet and dry seasons provided irrigation is available. The tomato seeds are first sown in a well-prepared and fertile nursery bed and transplanted after 21-30 days. The maturity period after transplanting is between 60-80 days depending on the variety. For good crop density, the tomato should be spaced at 30 – 60cm intra spacing i.e., space within plants and 50-100cm interrow spacing i.e., between plants rows. Good agronomic practices can achieve about 18-25 tonnes per acre.
Marketing and Distribution
Operations
A medium-holder farm can be managed with a lean operational framework of not more than 5 people, mostly contracts with little overhead cost. Most administrative tools for such tasks as bookkeeping, project management and reporting can be sourced freely.
As farms grow, headcount may grow, however, it is advised to keep operations lean and overhead low by using contract workers for most of the farm tasks while growing capacity in managerial areas
As farms grow, headcount may grow, however, it is advised to keep operations lean and overhead low by using contract workers for most of the farm tasks while growing capacity in managerial areasRisk
Tomato farming at medium scale is presented with a few risks that can be mitigated with low complexity considerations and actions
Environment Proper community engagement with legal backing, security assessments for safe areas against pastorals and insurgencies. 
High Probability
Technical Obtain training on production, consult the services of an agronomist 
Low Probability
Pest & Disease Proper weed control, and use of cultural, chemical, and biological pest control methods 
Medium Probability
Climate Use weather prediction information from NIMET, avoid flood-prone land. Make use of irrigation facility during dry spell. High Probability
Finance Access to finance and credit to complete the production. Medium Probability
Market Apply good agricultural practices (GAP), produce based on the market quality requirement and understand the market and market channels. Low Probability
Pricing Work with other farmers and associations on pricing. Also, you can get a pre-contract agreement with your buyer Medium Probability
Risk and Mitigants Matrix (July 2023)
Unfavourable environments such as land issue, insecurity, and pastoralism
Mitigant
High ProbabilityPoor technical knowledge on tomato production.
Mitigant
Low ProbabilityOutbreak of pest and diseases.
Mitigant
Medium ProbabilityIncedence of drought or flood
Mitigant
High ProbabilityLack of funds or poor funding
Mitigant
Medium ProbabilityProduct rejection and ripping off by middlemen
Mitigant
Low ProbabilityPoor pricing of commodity
Mitigant
Medium ProbabilityEconomics of Production (October 2023)
TAO Market Survey
It is advised that capital expenditure is avoided at this stage and all capabilities are sourced as services. Labour and services costs may vary per state or region and are amortized per hectare.Profitability of Production (October 2023)
TAO Market Survey
Funding
There are funding sources for medium-scale tomato farming if capacity and capability are demonstrated. Typical funding sources from formal financial institutions include:
data
data
data
data
data
Funding considerations will require that feasibility and viability are demonstrated, some track record in agriculture will also support a positive funding outlook.
Who is Suited for This?
Anyone interested person that has the knowledge or is ready to acquire knowledge on tomato production. The best-suited are agriculture students, graduates, professional farmers, side hustle farmers, and enthusiasts.
Consideration Score
- Viability --- High
- Feasibility --- High
- Profitability --- High
- Ease of entry --- High
- Aggregate Risk --- Medium
- Probability for Growth --- High
- Resilience and Sustainability --- High
- Aggregate Consideration Score --- High
Conclusion
Tomato is one of the most consumed vegetables in Nigeria which has a high market value, you cannot go wrong in terms of profit if you properly understand the good agronomic practices.
