The employment covers machine operators, cleaners, sales
clerks and transport workers. The effect translates down to the farmers via
demand and supply.
Tomatoes are massively eaten raw in meals or processed
into various items. Tomatoes are processed into spices, purees, pastes and
dried products.
The products are popular and manufacturers make huge
profit because of the demand. The product due to its abundance attracts cheap
competitive prices.
The processed
products are found in soups, stews and various dishes. Common products made
from tomatoes are tomato sauce, puree, pulp, juice and ketchup.
Manufacturing companies package their products in cans,
nylons, bottles, drums and glass. The packaging is vacuum sealed and sterilized
for longer shelf life of the products.
To start a small scale tomato processing company you need
to choose a niche. Focus on a single item and slowly grow your inventory.
Luckily the machines used in the processing of tomato can handle multiple product
types.
Popularity of the tomato product depends on the type of
concentrate, taste and acceptability. Entrepreneurs should invest in product
development, packaging, and branding.
During the developmental stages the product goes through
sampling, testing and standardization. Although the market is hugely there is room
for small business and large manufacturers.
The production
process of various tomato products is simple and easy to learn. The size and
scope of your business depends on the type of machinery, space and functionality.
Things to consider when starting a processing plant are
funding, equipment, factory space and trained staff. Here are a few tomato
processing business ideas for small businesses.
Common
Tomato Products
Ketchup
Ketchup is produced with ingredients such as pepper,
spices, sugar, salt and ripe tomatoes. To produce ketchup you need to wash, cut, trim
and steam ripe tomato. Then apply heat to achieve a soft consistency.
Tomato
Juice
To produce tomato juice it goes through a pulping machine
to separates the skin and seed. It is then heated to obtain the juice, bottled
or canned. Tomato juice is further processed to get tomato paste or pulp.
Other common products obtained from tomatoes are puree
and tomato sauce. The different products need to pass mandatory provisions such
as solid content.
How
to Start a Small Tomato Processing Business
Financing
the Tomato Processing Plant
The capacity of your plant and units produced per day is
of considerable importance. You need capital to purchase machinery and startup
capital.
The money is needed for fix and working assets. Secure
loans from finance institutions such as commercial or merchant banks. You can
sell startup equity in the business or find a core investor.
Locating
the Tomato Plant
There are two ideal locations for your tomato processing
plant. The first is locating your business close to the source of raw materials
or within a large market. Both locations have there own advantages and
disadvantages.
The major challenge is transporting the raw tomatoes to
your factory or distributing the finished goods. Others are availability of
cheap labor, good road network and utilities.
Write
a Business Plan
Write a business plan for your tomato processing
business. Then conduct a feasibility study to identify a good location and
source of raw material. The report should focus on market potential and demand
in your immediate community.
Register
the Tomato Processing Company
Register your tomato processing company as a limited
liability entity. Then obtain a trade license and insurance cover.
Then apply for a value added tax identification number. Your
product needs to go through standardization and certification. Find out other
local or state permits and licenses applicable to your area.
Tomato
Processing Machinery
Once you have leased an ideal factory or warehouse you
need to install the machinery. The type of machinery depends on brand and
functionality.
Equipment used in manufacturing tomato products includes
extractors, vacuum machine, pasteurizer tank and separators. Others are weight
scales, canning equipment, pulper cap and others.
Marketing
the Tomato Product
Consumption of tomato products is huge and there is a
ready market. The products face stiff competition from established brands
names.
The only way small manufacturers could penetrate the
market is through high quality products. You need to develop a product that
meets people’s expectation.
Tomato paste has a huge domestic and international market
opening export opportunities. The product needs good packaging, a recognized
name and meets quality control standards.
The packaging should be unique, attractive and easily
identified. There are different types of packaging such as can, nylon or bottle
containers.
Manufacturers use lots of promotions and advertisement to
reach potential customers. Advertise in newspapers, magazines and electronic
media.
Offer discounts, better pricing, bundle sales and
competitions. Hire commission sales agents to push your brand to different
markets.
How to Start a Vinegar Manufacturing Business
How to Start a Vinegar Manufacturing Business
0 comments:
Post a Comment