Growing consumer demand due to increased awareness of the nutritional benefits of tomatoes presents an opportunity for the industry to innovate and invest in research and the development of organic and climate resilient varieties.
This is according to a National Agricultural Marketing Council (NAMC) policy brief, compiled by Thulani Ningi, Moses Lubinga, Corné Dempers and Matume Maila, and released yesterday.
According to the brief, there is a need for collaboration among tomato industry players, the private sector, development agencies and the government to enhance existing financial interventions, which would increase farmer revenue and promote a sustainable tomato value chain.
“To foster a more competitive and diverse sector, industry stakeholders must actively encourage and support new entrants (growers and processors),” the brief states.
“This support should include providing access to training programmes, financial assistance, mentorship opportunities and assistance in accessing markets.”
NAMC said tomato production had been fluctuating in South Africa, with significant decreases attributed to unfavourable weather conditions.
“On the consumption side, processed tomato products have seen a decline in volume and value due to similar weather-related challenges,” it said.
“The challenges faced upstream in the tomato value chain in South Africa, such as the limited availability of raw materials, product quantity and quality, seem to contribute to the overall slowdown in processing and trade.”
Namc said challenges encountered along the value chain included fluctuating retail prices, which sometimes did not match with the associated production or processing costs; competition from imported processed tomato products; and uncertainties in climatic conditions.
Conversely, it said factors such as tomato quality, consistency in supplying tomatoes (quantity) and processed products in the market, taste, and the attractive presentation of tomatoes and the derived products, among other factors, enhanced the development and competitiveness of the tomato industry.
The authors of the brief said horticultural farming was a vital sub-sector, offering significant potential to reduce poverty among low-income and small-scale farmers.
They said horticulture sales reached R86.3 billion in 2019, making it a crucial contributor to the agricultural economy, second only to animals and animal products, which generated R153.1bn.
Despite its reputation for implementing best practices in tomato production, South Africa’s tomato sector was said to face significant challenges.
These included high input costs, market price fluctuations, water scarcity, unreliable electricity supply, labour issues and inadequate transportation and export infrastructure. These were major hurdles that required urgent attention.
NAMC said the nexus between production, agro-processing and market access remained a critical concern within the tomato value chain.
“Furthermore, despite being a leader in production practices on the African continent, South Africa still relies on imported tomato paste, highlighting a need for a critical assessment of the local tomato industry’s performance,” NAMC said.
“Establishing a well-defined value chain is imperative for alleviating poverty and fostering economic growth among tomato farmers, processors and traders.”
BUSINESS REPORT