Tomato industry in Senegaland Kagome Senegal

16th May 2019Kagome Co., Ltd.

Kosuke �Macca� Nakamura (Mr.)

1

Senegal

2

Senegal

3

World tomato consumption

4Source : WPTC

Agenda

1. Kagome2. Tomato industry in Senegal3. Challenges in Senegal4. Kagome’s goal

5

Introduction: Kagome• Founded in 1899 • Sales volume 1,900 MM$ FY2017 Consolidated

• Employee 2,456 FY2017 Consolidated

• No.1 Brand share in Japan

54.6 % 60.7%

Source: Intage SRI (2017) supermarkets+convenience stores+others

Tomato Juice Tomato Ketchup

6

Introduction: Kagome• Business “Seed to Table”• Think vertically, Act globally

Seed

Seedling

Farming

Primary Processing

Secondary Processing

Marketing

R & D

7

Agenda

8

1. Kagome2. Tomato industry in Senegal3. Challenges in Senegal4. Kagome’s goal

Tomato growing area (Green part)

9

History of tomato industry in Senegal

Source : SAED

30 km

History of tomato industry in Senegal

10

1960 • Senegal became independent1965 • Société de Conserves Alimentaires au Sénégal (SOCAS) was established.1972 • SOCAS started contract farming and tomato factory operations (Savoigne, St.

Louis region)1970s • Tomato industry grew under protectionist trade policies1986 • Tomato production decreased by disastrous sandstorm, and emergency import

measures of finished products1988 • Liberalization of tomato market by new industry policy1995 • Association of national tomato industry sector, Comité National de Concertation

sur la Filière Tomate Industrielle (CNCFTI), was established.2000s • Tomato production decreased gradually

• Import of tomato paste increased gradually2004 • Agroline started tomato factory operations (Dakar)2011 • Takamoul started tomato factory operations (Dakar)

Fresh tomato production in Senegal

11Source : Ministère de l’Agriculture et de l’Hydraulique, CNCFTI

Industrial tomato production

Fresh tomato production in Senegal

12Source : Ministère de l’Agriculture et de l’Hydraulique, CNCFTI

Total are of industrial tomato

Fresh tomato production in Senegal

13Source : Ministère de l’Agriculture et de l’Hydraulique, CNCFTI

Yield of industrial tomato

Tomato paste import in Senegal

14Source : FAOSTAT

Agenda

15

1. Kagome2. Tomato industry in Senegal3. Challenges in Senegal4. Kagome’s goal

Common practice on tomato farming in Senegal

16

• Furrow irrigation from Senegal river• Small surface possible to manage by one farmer• Grow Dual-purpose tomato variety• Seedlings grown on the ground• All manual operations

Farmers expects more income, but they have not changed by themselves

17

To boost tomato production by introducing modern tomatofarming practice with our technical supervision

Issue

Challenge

Challenges of Kagome Senegal

• After losing competitive power of fresh tomato, import of tomato paste hasbeen increased. It is supposed that low productivity in fresh tomato farmingcauses.

• Main crop in Senegal is rice. Expecting higher income, farmers expect to growtomato. The risk which tomato cultivation fails is higher because of lack ofsystems which support them technicaly.

Feasibility study

18

Kagome studied tomato farming potential of Senegal for 3 years.

• Demonstrated farming potential : 30 MT/ha → 65 MT/ha− Introducing modern tomato farming practice− Farming support system for smallholders

Kagome Senegal Sarl was established in December 2017

Business operations�• Growing and selling fresh tomato and vegetables by in-house or contract• Producing and selling tomato and vegetable seedlings• Providing machine operation services and technical support services

19

Activities of Kagome Senegal

Activities of Kagome Senegal

20Source : SAED

Agenda

21

1. Kagome2. Tomato industry in Senegal3. Challenges in Senegal4. Kagome’s goal

Kagome’s goal

22

Kagome’s goal

23

Thank you for your attention

24