SUSTAINABLE AGRICULTURE AND FOOD PRODUCTION

Tomato paste from second-grade tomatoes for packaging facilities

Tomato paste from second-grade tomatoes for packaging facilities

Market

Final Products Tomato paste
Required Inputs Second-grade tomatoes
Competing Products

Low competition
Other brands of tomato paste in the local market and imported products

Potential for Export High

Process

Complexity – Type of Process High–mechanical and thermal processes
Technology Collecting, sorting, washing, cutting, evaporation, and sterilizing
Equipment and Material Washing and cutting machines, evaporators, and sterilizer
Human Resources Manual labor, chemical, and quality control engineers

Business Linkage

Forward Linkage Packaging facilities
Local/Regional/Nationwide Export & Local markets
Backward Linkage Farmers
Supporting Entities Equipment suppliers and testing facilities
Competitive Edge
Could be lower cost and more tailored to industry needs as produced locally

Economic Features

Revenue Stream Sales of tomato paste
CAPEX The inputs and technology would cost an average of 2.4M EGP

Note: This CAPEX represents the indicative investment size, however, this investment opportunity can grow in implementation to a larger-sized investment.
Investment Size Small (between 500k-5M EGP)

Considerations

Key Challenge Seasonality of supply, mass production, access to high-quality suppliers, food safety, marketing and sales, meeting product specification and standardization
Advantages High profit margins and high value-addition
Potential Pathways to Growth Production, sales and/or distribution of other value-added products (e.g., powder, extracts, sun dried tomato, flavored salsa, concentrate etc.) for various customer segments (packaged and branded or white label)

General Impact

Environmental Reduces waste of agricultural produce and processing material close to the field reduces emissions in transportation
Social Increases returns on agricultural products and creates job opportunities

Impact on Sub-market(s), Cluster(s) and Value Chain(s)

Relevant sub-market Intermediary to industries (food, pharmaceutical, wood, and paper)
Lies within the following
value chain/cluster(s)
Tomatoes
Impact Promotes value-addition to tomato production
* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

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