February 2017

I & B SEEDS PRIVATE LIMITED

Tomato: Challenges and opportunities in South Asia

Praveen Noojibail

World tomato production

50.0

18.213.14

11.20

8.32

6.05.66

4.14 4.12 3.0

FAOSTAT, 2016

TOMATO PRODUCTION (MT)

CountryArea

( M Ha)

Productivity

(T/Ha)

CHINA 0.96 52

INDIA 0.83 23

TURKEY 0.29 38

EGYPT 0.20 39

USA 0.15 85

IRAN 0.14 37

ITALY 0.09 55

MEXICO 0.08 34

BRAZIL 0.06 62

SPAIN 0.04 80

World tomato production

FAOSTAT, 2016

Tomato production in South Asia

India contributes to 92% of Area, 95% Total production

FAOSTAT, 2016

COUNTRY AREA

(M Ha)

PRODUCTIVITY

(T/Ha)

India 0.83 23

Indonesia 0.06 17.1

Pakistan 0.05 9.5

Philippines 0.02 14

Bangladesh 0.02 9

Srilanka 0.007 10

Thailand 0.006 23

Average/Total 0.993 14.72

Seed Business

Challenges and Opportunities – For Whom???

Farmers / Consumers

Seed Business - Challenges

Staying ahead in the race

IP protection

Anchor down for long haul

Seed companies in:

China - ~ 7000 registered

India - ~ 500 registered

Chinese Seed Trade, 2016 Agritex, 2016

South Asia Seed Industry - Challenges

AVG TOMATO SEED PRICE IN EUROPE - $9000-$10,000/kilo

AVG TOMATO SEED PRICE IN THE US - $ 6500-$8500/kilo

AVERAGE TOMATO SEED PRICE IN INDIA - $ 400/kilo

Industry Opportunity – how to stay ahead???

Introduce stress tolerant hybrids with latest technological

tools

Facilitate producers find markets during low prices by

coordinating with processing industry

Developing tomatoes with incremental USPs - higher nutrient

values, better processing qualities, increased tolerance to

stresses……..

9

Farmer Challenges = Industry Opportunity

Moving on to farmers…. The reason why we exist

Industry Contribution – Productivity Increase

FAOSTAT, 2016

Year Area

(000’HA)

Production

(000’T)

Yield

(T/HA)

2010 634 12400 21.6

2011 865 16500 21.1

2012 907 18700 22.7

2013 880 18200 22.8

2014 882 18700 23.4

2015 754 18160 24

Productivity in India doubled between 2000 and 2015

TOMATO PRODUCTION

Farmer / Consumer Challenges

Tomatoes dumped on roads because of low price

Source :Web

12

Farmer Challenges

APRIL 2106

AUGUST 2015

13

Farmer Challenges

AUGUST 2016

14

$0.05/kg is breakeven point of cultivation

< $0.05, farmers don't recover even harvesting

& packing cost

Farmer Challenges

Farmer Challenges

ec.europa.eu/agriculture, European Commission

TOMATO MONTHLY WHOLESALE PRICES ($) FOR THE YEAR 2016

Ministry of Agriculture and Farmers Welfare, 2016

PER CAPITA CONSUMPTION OF TOMATOES (kg/CAPITA/YEAR)

With increase in productivity & consumption being low, increasing processing capacity is

a must.

Tomato Consumption

Agribenchmark.org

RegionTomato

Consumption

Africa 30%

Asia 9%

Central America 27%

Europe 23%

North America 33%

South America 32%

World 19%

CountryWholesale price for 2016

(USD/kg)

Indonesia 0.6 – 1.88

Myanmar 0.22 – 0.91

Philippines 0.57

Thailand 0.3 - 0.5

India 0.18

Farmer Challenges

APMC Reports, 2016; www.countrystat.psa.gov.ph; www.numbeo.com

Tomato production types in South Asia

INDIA PAKISTAN

MYANMAR

Source :Web

Profitability in staked vs non-staked type of cultivation in India

Type of Cultivation Area( 000 Ha)Productivity

(T/Ha)

Net profit / Ha

(USD)

Staked 222 28.9 960*

Non Staked 660 18 1160*

Total 882 21.2 1143

Cost of cultivation:

Staked : $2500/Ha

Non Staked Tomato : $1000/Ha

Opportunity????

Shinde et al. 2015

* Calculated when average price to farmer was $0.12/ kg

Opportunity – Export to reach price equilibrium 😀

Tomato cultivation profitability

COUNTRY NET PROFIT(USD)/Ha

USA 750-3750

CHINA 2200

INDIA 977

PAKISTAN 675

BANGLADESH 1200

Coststudies.ucdavis.edu

Opportunities

VARIETIES CURRENTLY GROWN NOT SUITABLE FOR

PROCESSING

AVAILABLE PROCESSING FACILITIES YET TO GO CRITICAL

ENSURE SUPPLY OF RAW MATERIAL AT PRICES ACCEPTABLE

TO BOTH GROWER AND PROCESSOR – FOR THIS LARGE

SCALE MECHANISED CULTIVATION IS ONLY OPTION

Is the situation ideal for processing industries?

Opportunity

PROTECTED CULTIVATION CAN SURELY INCREASE PRODUCTIVITY

Productivity under protected cultivation: 250-600 T/Ha

COUNTRY GREEN HOUSE AREA

CHINA 2,760,000

KOREA 57,444

SPAIN 52,170

JAPAN 49,049

TURKEY 33,515

ITALY 26,500

UNITED STATES 8,425

GREEN HOUSE AREA

PRODUCTIVITY

Reena N and Swati B, (2014)

23

Barring temporary, localised shortfall, no major catastrophes in

production

When problems do occur (TYLCV, TOSPO, etc) solutions have been

managed.

IP protection is a major concern and has to addressed

Processing has to increase

CONCLUSION

24

15/3A, Noojibail Nursery, Ganakallu,

Uttarahalli-Kengeri Road,

Srinivasapura,

Bangalore – 560 060

Tel : 080-28611437

Mob : +91-9900002669