Economic study of tomato paste production

Abstract

Abstract Statistics of tomato production and utilization have been reported to show the recent development of the tomato industry in the EEC countries. In particular, the profitability of tomato paste production has been evaluated and then analysed to assess the influence of the operating costs, EEC payments and market price of tomato paste. The economic balance for a plant capacity of 14 tons of raw tomatoes per hr and 2880 operational hr per year shows profitability of 22% in 1979 and 16% in 1980 owing to inflation and decrease in product demand. The annual cost of raw materials is not only more than 75% of production costs, but is also double the total capital invested. For this reason the tomato industry is compelled to resort to high-interest, short-term loans which further reduce net earnings. Mechanization of crop harvesting, automation of sorting, optimization of evaporation and packaging units and flexibility of plants are needed to maintain interest in tomato paste production in industrialized areas.

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