Tomato farming is one of the most profitable agriculture business ideas. Tomatoes are widely consumed – they can be consumed in diverse ways including raw, as an ingredient in many dishes and sauces and also in drinks. Tomatoes are also used by food processors. Processing of tomatoes consists of canning, freezing, dehydration and juice production. Tomatoes are processed into tomato sauce, whole pealed, tomato and onion bruises, paste, shredded, puree and paste concentrate. This article will outline how to start the tomato farming business, and the tomato farming business plan – PDF, Word and Excel.
Tomato farming is a lucrative business, providing income for millions of people, but there are some essential things you need to do before you venture into the tomato farming business. You have to make a decision on how many hectares you want to farm, which type of tomatoes you will farm, which season you are going to plant your tomatoes, and your target market.. These choices will be affected by the amount of capital you have, and the size of your target market. If you do not have a lot of capital, you can always start small and grow your tomato farming business overtime. You also need to carry out market research (Who are you going to sell the tomatoes to? At what price?) and write a tomato business plan before you venture into the business.
Land for Tomato Farming Business
Good tomato production starts with good land selection. Tomatoes can grow on a wide array of soil textures depending on the variety of the tomato, from light, sandy soils to heavy, clay soils. Sand soils are the most ideal for quick and early maturation tomato varieties. Another factor to consider is the pH of the soil, as it should be ideally in the range of 5.0-6.5 to enable the optimum growth of the tomatoes. The land for tomato farming should also have the right soil structure. The soil for tomato farming must permit adequate root growth to support the plant and supply water, oxygen and mineral nutrients and must be free of toxic elements. It is important that before you start farming tomatoes on your farm, you check whether the soil is suitable for tomato farming. Your tomato production business plan should take into account the cost of purchasing or renting the land.
Machinery and Equipment
Machinery and equipment which are required for your tomato farming business will depend on the scale of your operations. Machinery and equipment needed include tractors, harvesters, boom sprayers, fertilizer spreader equipment, irrigation equipment, spray equipment, diggers, scales, ridgers, bins etc. Most farmers usually hire big machinery like tractors when they want to use them, rather than purchasing them as they are expensive. There may also be need of grid hydroelectricity energy for the irrigation systems, standby diesel generators for use during power outages, or solar powered irrigation systems. Farmers especially in the rural areas who do not have the modern farming equipment use animal drawn equipment in tomato farming. The higher the level of mechanization at your tomato farm, the higher the efficiency of your operations, and the profitability of your tomato farming business. The tomato farming business plan should include the costs of acquiring and hiring the various machinery and equipment.
Tomato Farming Inputs
You require various farming inputs when doing tomato farming. The tomato farming can be started using tomato seeds or seedlings. Tomato varieties can be classified into 3 broad categories which are determinate, semi-determinate and inter-determinate tomatoes. Your choice of which tomato variety to use will depend on variety of factors: time to maturity, yield, availability of seeds, target market preference, season, fruit quality adaptability, disease resistance among other factors. It is important that you purchase your tomato seeds from certified tomato seed suppliers. If you opt for seedlings, then source them from reputable nurseries. If you buy poor quality tomato seeds, your tomatoes will not grow to their full potential and you will have poor yields.
Fertilizers are required to support the efficient growth of your tomatoes, by providing all the nutrients needed by tomatoes to grow to their full potential. Essential nutrients needed for the growth of tomatoes include nitrogen, phosphorus and potassium. Organic matter is also important in tomato farming. This can be in the form of compost, decayed leaves, animal manure etc. Organic matter is a good source of plant nutrients. Organic matter also increases the capacity of the soil to retain water and nutrients. It’s a soil conditioner.
Other farming inputs required for tomato farming business include herbicides, for effective weed control at your farm. Pesticides and fungicides are required for protecting your tomato plants against insects and fungi. Trellising and training of tomatoes is very important to some tomato cultivars and varieties. This involves supporting the tomato plants on poles and wires or specialised trellising material. The benefits of training tomatoes include improved spraying to control diseases and pests, better air circulation around the plant and less fruit rotting.
The costs of acquiring all these inputs should be included in your tomato farming business plan.
When doing tomato farming business, you will need to hire part time farm workers as and when necessary. The duties which they will do include planting tomato seeds, transplanting tomato seedlings; applying fertilizers; trellising tomatoes, ploughing; harvesting, herbiciding and pesticiding. The part time farm workers will be paid according to the number of days worked. You also require supervisors, farm manager, finance & accounting staff, and logistics staff depending on the scale of your tomato farming business. The wages and salaries of your workers should be included in your tomato farming business plan.
Capital for Tomato Farming Business
The amount of capital required for tomato farming business depends on the scale of the project. You can get a loan from the bank, or funding from investors, to use as capital to start your tomato farming business. If you plan to raise capital from investors and a loan from the bank, you need a good tomato farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your business overtime. Tomato farming is very profitable, so if you reinvest the profits you get, you can quickly grow. Even if you are not planning to get a loan, you should still get a tomato farming business plan to guide you in starting and operating the business. It is essential for you to have a tomato farming business plan before you venture into the tomato farming business, so that you know all the costs involved and you make an informed decision.
The market for tomatoes is very huge and is ever increasing. The annual global demand of tomatoes is more than 160 million tonnes. That’s a lot! You can supply your tomatoes to individual households, schools, restaurants, food processors, hotels, companies, supermarkets, organizations, events etc. The tomato business plan ought to include a proper marketing plan to use in your tomato farming business.
Pre-Written Tomato Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the tomato farming business, we encourage you to purchase our well-researched and comprehensive tomato farming business plan. We introduced the business plans after discovering that many were venturing into the tomato production business without enough knowledge and understanding of how to run the tomato farming business, how to farm the tomatoes, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global tomato farming business plan will make it easier for you to launch and run your tomato farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the tomato business.
Uses of the Tomato Farming Business Plan (PDF, Word And Excel)
The tomato business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your tomato farming business
- As a tomato farming business proposal
- Assessing profitability of the tomato farming business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Tomato Business Plan (PDF, Word And Excel)
The tomato farming business plan include, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Risk Analysis
- Industry Analysis
- Market Analysis
- SWOT & PEST Analysis
- Operational Requirements (Including technical aspects of how to farm the tomatoes, fertilizer requirements etc)
- Operational Strategy
- Why some people in tomato farming business fail, so that you can avoid their mistakes
- Ways to raise capital to start your tomato farming business
The Pre-written tomato farming business plan package consist of 4 files
- Tomato Farming Business Plan – PDF file (Comprehensive Version – 84 Pages)
- Tomato Farming Business Plan – Editable Word File (Comprehensive Version – 84 Pages)
- Tomato Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 39 pages)
- Tomato Farming Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of hectares, selling price of the tomatoes etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Tomato Farming Business Plan (PDF)
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