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Tomato ketchup


  1. Product Description: Tomato ketchup, paste, juice and puree are food products made from tomato fruits. These products are becoming popular in the major urban centers of the country and their demand is steadily increasing every year.

 

  1. Market Potential: The supply of tomato products is mainly composed of imports. However, a small quantity of tomato paste is produced locally. Local production of tomato paste between 2000 and 2004 was 1734 ton per year on the average. Due to the liberalization of the country’s foreign trade, the import of tomato products has been increasing during the last 10 years. Domestic production of tomato ketchup, paste and juice is not more than 10-15 percent of total consumption. This means that more than 17000 tons of tomato products are consumed in the country every year leaving a deficit of about 15000 tons to be substituted by increasing domestic production.

 

  1. Raw material Source: The manufacture of potato ketchup, paste and juice require adequate supply of tomatoes and water. There are many areas in the Amhara Region which are suitable for growing tomatoes. Areas around Lake Tana especially the eastern, southern and northern shores of the Lake are considered as best areas for growing tomatoes. Besides, these areas have enough water supply if the processing plant is located in a town located near the lake. 

 

DOMESIC PRODUCTION AND IMPORTS OF TOMATO KETCHUP &SAUCES

 (IN TONS)

 

Year E.C

Imports

 

Domestic Production

Total

1989

NA

825

NA

1990

482

951

1433

1991

483

1949

2432

1992

231

2424

2655

1993

139

1730

1869

1994

270

555

825

1995

550

2116

2666

1996

516

1846

2362

1997

902

1846

2748

1998

249

1790

2039

1999

821

1790

2611

2000*

2240

1790

4030

                   Source: Compiled from CSA’s Manufacturing and Import Data

                                     * Estimation

  1. Process and Technology: The processing of tomato ketchup, paste and juice involves the following major operations- collection of ripened tomatoes, putting them on a washing line, washing the tomatoes, separating good tomatoes from the crushed, rotten ones, crushing the tomatoes, concentration, filtration homogenization, flavoring, bottling and cooling. Required machinery include: tomato charging machine, tomato washing and sorting machine, concentrator, filter, homogenizer, seasoning mixer, bottling machine, cooler, labeler, packing machine, water treatment facility, boiler, etc.

 

  1. Estimated Investment: For a plant which will produce 400tons of tomato ketchup per day, the estimated investment will be:
    • Buildings2700m2 at Birr 2000/m2 .................= Birr     2,400,000
    • Machinery …………………………………...= Birr  25,000,000
    • Working capital ………….…………………= Birr   1,000,000

             Total ………. = Birr  28,400,000

 

  1. Benefits: Possibilities of foreign exchange earning through export, saves foreign exchange by substituting imports, stimulates the production of tomatoes and other vegetables, and introduces new skills and technology.

 

  1. Location: Woreta, Gorgora or any other town near tomatoes growing areas.

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