How To Start Ketchup Business in Nigeria or Africa: Complete Guide

Tomatoes are used in homes, hotels and restaurants around the world in forms of fruit, salsa, chilli paste and puree. They account for 20% of the vegetables consumed each day. Tomatoes may be transformed into ketchup, which many people primarily eat in addition with other foods while tomato sauce is used for food colouring, seasoning and preparation of soups.

Globally, the world trade and production of tomato ketchup and other tomato sauces is undertaken mainly by three countries — the United States, the Netherlands and Italy. Together, they provide more than half (52%) of the world’s supply of tomato in the sector, followed closely by countries such as Germany, Spain and Poland, which account for about 15%. Belgium, Portugal and China supplement for 8% of total tomato production value. In total, these top producers provide the export market with about 1.4 million tonnes of finished products. In addition, the global tomato ketchup industry is projected to grow by 3.2 billion dollars driven by a compounded growth rate of 2.2%.

In Nigeria, the market for tomato ketchup sauce is national. With a population nearing over 160 million people and an estimated national population growth rate of 5.7% per annum, and an average economic growth rate of 3.5% per annum in the past five {5} years, Nigeria has a massive market for tomato ketchup sauce. People of all age groups consume tomato ketchup, and demand is increasingly shooting up in Nigeria. In addition to the growing household market, eateries, restaurants, sandwich makers, fast-food joints use it in food preparation. They are popular due to their extensive use as enrichers along with bread and other such food items.

One of the vital areas where food processing is underdeveloped in Nigeria is tomato ketchup manufacturing. Consequently, Nigeria imports 65.809 tons of tomato paste estimated at N11.7 billion ($77.167 million) per annum. The explanation for this is not far-fetched. Owing to its quick perishability, no less than 50% of the tomato produced in the country is lost despite the large market potential for tomato production. Yet, the local capacity is overwhelmed because of underdevelopment of the sector.

However, tomato is a vegetable that is very much acclimated to the Nigerian weather, especially in the northern states, and it yields massive produce. A concerted effort to improve the processing technique and storage would set the nation moving as far as tomato production is concerned.

This article would provide you with the guideline on how you can build your own tomato ketchup production business in Nigeria or Africa despite the challenges.

What Is Ketchup?

Tomato ketchup is a soft, tangy sauce with seasonings and spices made from tomatoes, butter and vinegar. Tomato ketchup is utilised basically as a condiment to dishes. The spices and flavours differ, but mostly, ketchup contains onions, allspice, coriander, cloves, cumin, garlic, and mustard, and, occasionally, celery, cinnamon, or ginger.

What Is Ketchup Production?

Tomato ketchup production involves all the process involved in passing tomato from the raw seed state to a processed form with additives. It involves processes such as adding additional ingredients, cooking, screening and filtering, air removal, cooling and packaging.

Business Opportunities In Ketchup Production Business In Nigeria & Around The World

1). Food Production Industry:

Ketchup is the primary food production ingredient used in most sauces worldwide. They are readily used to prepare fast foods such as greasy French fries, hamburgers, hot dogs, chicken tenders, tater tots, hot sandwiches, meat pies, cooked eggs, and grilled or fried meat. It is mostly used as a condiment dish and is usually served hot and greasy. The flavour may be replicated as an additive flavouring for snacks such as potato chips.

2). Tomato Processing Machinery:

Tomato ketchup manufacturing procedure requires different machines including the pulping machine, exhaust tank with a motor, semi-automated machine, and crown cork machine, among others, which all play an integral role in the ketchup manufacturing process.

3). Tomato Preservatives:

Tomato processing requires the use of preservatives to extend their shelf life. Chemicals like sodium benzoate and sodium metabisulfite are gaining massive popularity because of their preservative value. Preserving tomatoes and other such perishable farm produce has resulted in business opportunities for the preservatives industry.

Facts And Benefits of Ketchup

Ketchup is a key ingredient in the preparation of delicious dishes such as sweet and sour baked chicken, shrimp cocktails, and barbecue chicken sliders.
Ketchup is low in fat and calories, with less than 0.1 gram in each tablespoon serving.
A tablespoon serving of standard ketchup contains only 20 calories, which is far less than the recommended 1% daily calorie intake for most people.
Studies have shown that consuming tomatoes, a main source of lycopene, could prevent breast cancer.
Lycopene, a pigment found in tomatoes, can dilate blood vessels.
This is significant because constricted blood vessels result in strokes and heart attacks.
Besides its edible value, it has been proven that ketchup can polish tarnished silver. Placing the jewellery in a bowl of ketchup and letting it sit for 5 – 10 minutes with a little scrubbing revamps the jewellery.
Lycopene, which gives tomatoes their red colour, has antioxidants which could potentially increase sperm count by 70%, thereby boosting male fertility.
It lowers cholesterol levels: Tests carried out by Finnish scientists found that ketchup could cut low-density lipoprotein, otherwise called ‘bad cholesterol’.
Ketchup improves eyesight
It contains vitamin A, an essential nutrient for a healthy immune system.
Jigawa, Katsina, Zamfara, Sokoto, Kaduna, Bauchi, Gombe states lead commercial production of tomatoes.
An individual eats about three bottles of ketchup a year
June 5 has been declared National ketchup day
9 out of 10 American homes have ketchup in their kitchen
Just four tablespoons of ketchup gives you the same nutritional value as a medium-sized tomato
The acid in ketchup can remove stains from pans and pots.
The USA, Netherlands, Germany, Poland and Spain are the biggest producers of ketchup.

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How To Start A Ketchup Production Business In Nigeria: Step-By-Step Guide

The stages involved in making tomato ketchup include:

1). Sorting The Tomatoes:

The production of ketchup must first begin with sorting out quality tomatoes. Tomatoes vary in colour, flavour, texture and yield, so you need to look out for the ones of better quality. Consistency is also a significant factor, as slight alterations in tomato characteristics could affect the output.

2). Pulping:

The choice seeds are then pumped into pulping machines to separate their seeds, skins and stem from the pulp. The pulp and juice are further filtered through screens and processed into a paste form or stored in the pulp state for further processing.

3). Adding Ingredients and Cooking:

The pulp is thereafter pumped into cooking tanks or kettles and brought to boil. Foaming may occur during the healing process if fresh tomato pulp is used. To correct that, you can introduce anti-foaming compounds or compressed air. Then add precise amounts of sweeteners such as vinegar, salt, spices and flavours to the mixture. These should be added on time in the boiling process.

To prevent the occurrence of excessive evaporation, volatile spice oils and vinegar must be mixed later. Onion and garlic can be chopped and added to the pulp while salt and sugar may be added at any stage of the cooking to prevent burning. The mixture should then be allowed to cook for about 30 to 45 minutes on a rotating blade-installed cooking machine. Check regularly to avoid overcooking.

4). Finishing:

After the cooking process is completed, the ketchup mixture should pass through a finishing machine which removes excess fibre and particles through screens for a smoother output.

5). Milling:

The next step is to subject the mixture to a holding tank for further processing. The ketchup mixture can then be milled at higher temperatures and pressures to make it smoother.

6). Air Removal:

The next stage is the deaeration stage to prevent dislocation and growth of bacteria. Excessive air might also create unattractive air pockets that could impede the closure process.

7). Filling:

To prevent contamination, pass the mixture into filling machines with temperatures not lower than 88 degrees. The containers are then filled with the ketchup and sealed to retain their freshness. Different types of containers may be used to store the mixture,

8). Cooling:

Containers must be cooled to prevent flavour loss through slack burning, which occurs when ketchup stays at high temperatures after cooking. The cooling process may be in cold air or cold water.

9). Labelling and packaging:

Finally, label your containers with your product information and bottle them for use.

Challenges of Ketchup Production in Nigeria

Lack of storage facilities
Limited processing options.
The industrialised processes could be demanding and expensive
High cost of machinery.
Limited access to loans
Marketing challenges in the industry
High market competition
Lack of experience by most local
ketchup producers
Poor agricultural implementation policies/ structure.
Short shelf life span
Drought results in low tomato yields
Poor road network to transport tomatoes around the country
Complex chain of supply reduces the profit
Pest and diseases attack tomatoes and could cause a downward curve in ketchup business

To Sum It Up

With careful preparation and presentation, producing tomato ketchup could turn our a successful business venture. India’s ranking as one of the largest producers of tomatoes ketchup can be matched, and Nigeria has the potential to reach that output. The market is already available. All that is required is adequate structures and policies to drive productivity.

The ketchup production business in Nigeria can be a lucrative and profitable venture to start-up, due to its vast market demand and on your ability to build a wide supply chain network. If you’re looking for a supply chain business to venture into, the ketchup production business in Nigeria is a great option to explore.

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How To Start A Lucrative Ketchup Production Business in Nigeria: The Complete Guide