The HortiNigeria program uses a collaborative approach to address demand and supply gaps within Nigeria’s horticulture sector.
“This model is a win-win situation for all the actors, as it provides benefits to all the players in the supply chain.”Mohammed Salasi Idris, Hortinigeria program director
In 2022, HortiNigeria brokered a partnership with Tomato Jos, a tomato processing plant in Kaduna, Nigeria. The partnership is piloting a value chain outgrower financing model, both inside and outside of Tomato Jos farming facilities, to improve:
- A total of 500 smallholder farmers’ supply to a transformative market outside the Tomato Jos facility. Each farmer will work with three other farmers on his or her plot, thus benefiting a total of 2,000 farmers.
- Engagement of 2,500 youth and women in vegetable production through capacity-building trainings on tomato seedling production and drip irrigation systems (Furrow and Netafim).
Participating farmers are set to achieve a minimum yield of 25 metric tons per hectare as compared to the national average of less than 10 metric tons per hectare. Tomato Jos will offtake the harvested tomatoes using plastic crates to protect the produce from damage. The company will also ensure the reconciliation of data and repayment to the bank and farmers using an app. The tomatoes purchased from the farmers will be processed into paste packaged in sachets, and HortiNigeria will further facilitate market linkages for sales of the tomato products.
Additionally, the program is working with First City Monument Bank (FCMB) to disburse 116 million naira (about $251,000 USD) at a 9% interest rate to both smallholder farmers and input dealers.
“This model is a win-win situation for all the actors, as it provides benefits to all the players in the supply chain,” said Mohammed Salasi Idris, HortiNigeria program director. He explained that buyers are guaranteed a supply of crops, producers are guaranteed markets and inputs, dealers are confident in receiving payments for inputs sold, and financial institutions like FCMB are ensured of repayments for the credit disbursed.