Tomato prices have significantly dropped across Nigeria, driven by a seasonal glut caused by the January-to-March harvest period. Farmers and traders confirm that this period typically sees an oversupply of tomatoes, leading to lower prices and substantial post-harvest losses.
Currently, a 50kg basket of tomatoes sells for as low as N10,000 to N15,000 in Lagos, a sharp decline from the N140,000–N150,000 range recorded in May 2024. Similarly, in the northern region, a 25kg plastic crate is priced between N6,000 and N7,000.
The surplus, while advantageous to consumers, presents challenges for farmers and traders due to inadequate storage facilities and limited processing capabilities. Reports suggest that nearly 50% of harvested tomatoes are lost annually during this period.
Stakeholders in the tomato industry are urging consumers and businesses to leverage the low prices to invest in preservation. Small-scale preservation techniques, such as blending, boiling, and storing in airtight jars, are being promoted to extend shelf life by up to six months. Traditional methods like burying tomatoes underground in humid environments also remain an option for households.
However, experts caution that these techniques may not suffice for large-scale operations, highlighting the need for more robust storage and processing solutions. Entrepreneurs in the MSME sector can explore opportunities in tomato processing and packaging to reduce waste and create value-added products like tomato paste or puree.
Traders confirm the significant price reduction, encouraging buyers to stock up for future scarcity. While prices for lower-quality tomatoes are highly favorable, premium-quality produce is still being sold at a higher rate of N35,000–N37,000 for a 50kg basket in Lagos markets.
Small business owners and retailers in the food industry could benefit from buying tomatoes in bulk at these reduced prices. Establishing partnerships with farmers to process and distribute tomatoes or investing in storage facilities could address the perennial challenges of post-harvest losses.
This period presents a strategic opportunity for SMEs to innovate around tomato preservation, processing, and distribution. With adequate investment in small-scale processing technologies, businesses can create products that cater to domestic and export markets, ensuring profitability even during off-peak seasons.
The ongoing glut is a call to action for entrepreneurs and stakeholders to build sustainable solutions that minimize waste and maximize profits, ultimately contributing to food security and economic growth.
