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KNOWLEDGE DISSEMINATION > Poverty Reduction
Processing factory hungry for tomatoes

The Hai Phong Tomato Processing Plant has been left with little tomato supply to keep itself running, as farmers turn their backs on it in search of better prices for their crops. "Many farmers are running after immediate profits and ignoring long term production" said factory director Nguyen Van Xien.

The VND 43 billion (US$2.8 million) factory is designed to process up to 36,000 tonnes of tomatoes peryear, yielding about 4,000 tonnes of condensed product. Instead, it takes in about 3,000 tonnes, and has only output 1,500 tonnes of condensed tomatoes since it first went into operation two years ago.

The short supply provides enough for just 12 days of production; the rest of the year the factory is forced to process other fruit. The processing milI can't compete: lt buys farmers' tomatoes at VND 500 to VND 800 per kg, while market prices fetch between VND1,500 to VND 1,700. At peak times, farmers can sell a kilogram for up to VND 2,500.

Xien suggested tomato plantations be set up near the factory and a production zone should be established to secure a stable tomato supply. Others said farmers often sell their produce to private traders who have provided them investment capital. So they suggested the factory should be a direct investor in an established supply zone.


 
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