Processed tomato products imports rise
Published On February 23, 2016 » 2748 Views» By Bennet Simbeye » Business, Stories
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By MAIMBOLWA MULIKELELA –
ZAMBIA’s imports of processed tomato products have increased from US$4.968 million to $9.217 million in the last five years.
This is according  to the 2015 Horticulture Sub-sector Study Report which has indicated that this is as a result of limited processing companies involved in the value addition of horticultural products such as tomatoes.
Products imported include tomato Ketchup, tomato sauces and other mixed condiments.
The report indicates that imports of processed products into Zambia rose at an average annual value of $850,000 from $4.968 million to $9.217 million between 2010 and 2014.
This shows that the sub-sector can create wealth and income for the smallholder farmers if imports were substituted by local production and increased exports.
The report states that imports have continued to grow mainly because of low investment by the private sector into the production of quality vegetables and fruits.
“While a number of small firms were noted to have undertaken value addition of vegetables, only three major firms namely, Rivonia, Freshpikt and Sylva Foods were found to be processing tomatoes and chilli for sale in chain stores and export, all based in Lusaka,” states  the  report.
The report stated that three major vegetable processors were indicative of massive demand for their products both on the local market and international market.
They, however, complained of inconsistent and poor quality supplies from the local smallholder farmers.
The processors indicated that despite their offer of a stable price, the smallholder farmers opted for the open informal markets where they earn a higher return despite volatility of the prices on that market.
“Demand for processed vegetables such as tomato ketchups, sauces and other mixed condiments remains very high and indicative of a massive opportunity for investment,” the report revealed.

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