Dangote shuts down tomato factory. Again.


Nairametrics|Barely three months after resumption, Africa’s richest man Aliko Dangote has been forced to close it down again, due to a tomato pest invasion.
Here are the key points from the shut down:

  • The factory has a production capacity of 1200 metric tonnes a day and can produce 400,000 tonnes of tomato paste annually.
  • 8000 farmers agreed to supply tomatoes at $700 a ton, twice the domestic price.
  • The farmers are no longer keen on farming the crop after pest attacks last farming season.
  • The disease called tomato absoluta originated from South America.
  • The factory has had chequered operations due to a lack of raw tomatoes since it opened March last year.

The shut down has several implications for the firm. Machinery and equipment will have to be mothballed. A foreign crew will have to be flown in to service the equipment before operations resume. The farmers may decide to go for a higher price.

Bua group

Ultimately the tomato paste produced by the firm will be more expensive. National Bureau of Statistics (NBS) April report released show the food sub index increased 0.17% month on month from 2.04% in March to 2.21% in April. The index also increased 0.86% year on year from 18.44% in April 2016 to 19.30% in April 2017.

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