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Nigerian juice manufacturers estimate demand at 260mn litres per annum by sfghj luiytr





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Nigerian juice manufacturers estimate demand at 260mn litres per annum by
Article Posted: 08/02/2011
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Nigerian juice manufacturers estimate demand at 260mn litres per annum


 
Business,Business News,Business Opportunities
The National Chairman of the Juice Manufacturers Association of Nigeria, Mr. Emmanuel Adeyemi, says the demand of juice in Nigeria is about 260 million litres with a growth rate of between 25 and 30 percent per annum.



Adeyemi, who is the managing director, Fumman Agricultural Products Industries told journalists on Tuesday in Lagos that "the huge demand for concentrates in Nigeria is creating employment and revenue for the producing countries in Europe, America, Asia and South Africa."



He called on Nigerian research institutes to use small-scale technology to process juice in remote areas to reduce the huge rotten fruits found in dump sites in local communities.



Adeyemi said the cost of medium crushing facilities that could process 10 tonnes of fruits per hour was about N500 million (about US$3.2 million) .



He said that Funman Company had commenced efforts to tackle the lingering shortage of raw materials by establishing the Nucleus Estate Initiative (NEI) programme to boost production.



He said the programme entailed partnership with farmers who were provided with all the needed input for planting at subsidized prices.



According to him, Funman has decided to set up a concentrate plant with installed capacity of 150 tonnes of pineapple fruits daily.



He said such effort would improve planting of fruits through the NEI, increase fruit productivity as well as benefit the farmers and processors.



Adeyemi, however, decried the high import duty on materials for packaging juice.



He said that the duty on aluminum foils was between 40 and 50 percent and that it was affecting the growth of the sector.



"Aluminum foils may be produced in Nigeria, but not the type that can hold fruit juice to a temperature of 85 degrees without the products disintegrating," he said.



He said the Nigerian government was wrongly advised to increase the duty on aluminum foils and other packaging items to encourage local production.



"The local firms are not producing enough and quality standard packaging materials for juice long shelves life," he said.



Adeyemi called for a cross-border duty on laminated cartons of juice packaging to encourage healthy competition among manufacturers.



"The tariff should accommodate all users of laminated cartons either in roll or any other form," the association chairman said.



He listed other major challenges facing the sector as high cost of refrigeration because of the poor power situation, packaging and disparity of tariff in favour of big firms.



"The absence of citrus plantations and the low quality of citrus resulted to low-capacity utilization in factories," he said.

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