How to Start a Tomato Processing Business – Complete Guide

Any individual can start a tomato processing business from home or on a small scale. Tomato is one of the most popular vegetables globally. People consume tomatoes in both raw and processed form. The tomato is a perishable item. Therefore, the processing enhances the shelf life of the product.

The scientific name of the tomato is Lycopersicum Esculentum. It belongs to the family Solanaceae. Additionally, tomato ranks second after potatoes in the world. The major tomato-growing countries are China, the USA, Italy, Turkey, India, and Egypt.

Americans consume three-fourths of their tomatoes in processed form. U.S. consumption of processed tomatoes began a steady climb that accelerated in the late 1980s with the rising popularity of pizza, pasta, and salsa. Additionally, exports are becoming an important component of the U.S. tomato-processing industry. By itself, California leads the world in the production of processing tomatoes.

Is Tomato Processing Business Profitable?

Tomato processing includes different types of value-added product manufacturing. These are tomato juice, puree, sauce, ketchup, and tomato pulp. Tomato juice and pulp have industrial use along with domestic consumption.

Due to increasing standards of living in the cities and the rapid urbanization in rural areas, the demand for ready-to-eat items is also growing. Additionally, the changing food habits including the growing fast food industry have created a boost in the demand for processed tomato items.

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Another aspect is modern packaging technology. The Multi-layer- Flexible plastic packaging, Tetrapack, and Brick packing have a tremendous impact on the growth of the processed tomato market. This type of packaging allows the distribution of tomato products to wide, distant, and remote areas. In addition, it allows storing the products at room temperature for more than 4 months.

7-Step Tomato Processing Business Plan

In starting the business, you must have a business plan in your hand. Crafting a business plan starts with market research. According to your location, it is important to have some clear ideas about the demand for specific items.

Additionally, try to identify the established companies in this segment and their products. If you are starting with small start-up capital, it is advisable to start with a single product manufacturing operation.

1. Company Registration

You must register your business as per Federal law. Choose the right form of your business according to the ownership and investment pattern. It is advisable to consult with a small business expert to understand the permission and licensing issues.

2. Obtain Licenses and Permits

Tomato processing involves handling food. So you’ll need to comply with food safety regulations. Here’s what to do:

• Food Processing License: Obtain a license from your local food safety authority.
• Business Registration: Register your business with the appropriate government agency.
• Health and Safety Permits: Ensure your facility meets health and safety standards.
• Labeling Compliance: Follow labeling requirements for processed food products.

3. Tomato Processing Plant & Machinery

For the manufacturing operation, you must secure a location. However, the requirement of the area depends on several aspects. These are a production line, production capacity, and the number of finished products.

Talk to the machinery suppliers. And have a machinery floor plan from them. In addition, check the available utilities like electricity, water, and skilled manpower for the factory operation.

The machinery requirement depends on the specific product you want to produce. However, here we have compiled a basic list of machinery for your ready reference.

• Steam boiler
• Washing machine (Rotary rod, Washer equipped with spray arrangement, collection tank, etc.)
• S.S. tilting type steam jacketed kettle of cap
• S.S. tilting type steam jacketed Vacuum kettle of cap
• Pulper cap.
• Exhaust and processing tank
• Pasteuriser tank
• Bottle washing machine
• Vacuum filling machine
• Water storage tank cap (HDPE)
• Misc. equipment such as buckets, cutting, and peeling knives, etc.
• Weighing balance
• Crown cork machine
• Weighing Scales platform
• Working Tables
• Laboratory Equipment
• Pollution Control Equipment

4. Raw Materials

It is needless to say the major required raw material is a full-grown tomato. You must arrange the regular availability of raw tomatoes at your factory.

You can have a contract with the tomato growers also. Additionally, you will need to arrange sugar, preservatives, salts, and spices for different types of products.

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5. Choose the Right Location

The location of your processing plant is crucial. Here’s what to look for:

• Proximity to Tomato Farms: Being close to tomato farms reduces transportation costs and ensures fresh supply.
• Accessibility: Choose a location that’s easy for suppliers and distributors to access.
• Utilities: Ensure the location has reliable access to water, electricity, and waste disposal.
• Space: Make sure there’s enough space for processing, storage, and future expansion.

6. Tomato Juice Processing and Develop Recipes

First of all, you have to procure fully ripe well-developed color tomatoes for making juice. Then, wash the tomatoes.

After trimming and steaming, crush them in a crusher or cut them into pieces with knives. Then heat the crushed pieces in the steam-jacketed kettle till they become quite soft.

Finally, pass the heated tomatoes through the pulping machine using a fine-mesh sieve to separate the juice from the seeds and the skin. Keep heating to 85-90ºC and add the sugar and salt @ 1%. Finally, fill the hot juice in bottles, seal them immediately sterilize them in boiling water for about 30 minutes, and cool them.

a) Tomato Ketchup Processing

The percentage of the soluble solids in the ketchup varies from state to state. Therefore, you must check the local norms and regulations.

The juice obtained as above is concentrated with spices, salt, sugar, etc. The spices like cloves, cardamom, pepper, cinnamon, and other ingredients, etc. are tied loosely in a muslin cloth and placed in boiling juice in a steam steam-jacketed kettle. The sugar, salt, vinegar acetic acid, etc. are added later on.

b) Tomato Paste & Pulp Processing

To prepare tomato paste and pulp, the juice is further concentrated under a vacuum to around 9% to 12% solids. Also, you can prepare tomato powder using different technologies depending on the end use of the product. Additionally, you can source the tomato processing technology from any reputed Government research institutes.

c) Tomato Puree Processing

First of all, obtain the juice obtained as above. Then, concentrate it under a vacuum to about 9% to 12% total solids to get tomato puree. Finally, fill the product in bottles. Seal the bottles with crown cork and process in boiling water for 30 min. and cool.

d) Tomato Processing For Sauce

For preparing the sauce, you will need to concentrate the juice under a vacuum and controlled temperature. In addition, you have to add salt, sugar, vinegar, spices, onion, etc as per requirement.

Then, boil this mixture under vacuum till it contains a minimum of 12% tomato solids and 28% total solids. Then pass the sauce through a sieve to remove fibrous and other materials. Finally, cool the material and add the preservative before sending it for packing.

7. Promotion & Marketing

Promotion and marketing are the musts to achieve overall success in this business. Additionally, you must pay attention to the packaging. First of all, try to hit the local consumers. And an effective distribution channel is the best option to capture the local retail market.

Additionally, supermarkets and malls are great places to promote your product. If you are starting tomato processing on a large scale, you can consider exporting also.

FAQs on Starting a Tomato Processing Enterprise

How much would it cost to begin a tomato processing venture?

The cost varies depending on the magnitude of your venture. A small-scale enterprise can begin with $10,000 to
$50,000, whereas a big operation could cost $100,000 or more.

What machinery do I use in processing tomatoes?

Standard machinery involves washing and sorting machines, boilers, blenders, filling machines, and packaging machinery.

How do I maintain the quality of my products?

Have strict quality control procedures, employ high-quality raw materials, and adhere to food safety standards.

Can I process tomatoes at home?

Yes, you can do it small scale at home but you will have to adhere to food safety standards and acquire the requisite licenses.

How do I get customers for my products?

Use social media, work with local shops, participate in farmers’ markets, and sell on the internet to get to customers.

What are the top-selling tomato-based products?

Tomato sauce, paste, ketchup, and salsa are some of the top-selling products.

How do I store processed tomato products?

Store products in a dry, cool location. Use proper packaging to prolong shelf life.