Cold chain industry says more storage to raise viability of farm businesses

MORE cold storage facilities will help make farming businesses more economically viable, by preserving bumper crops for processing or sale beyond the harvest season, a cold chain industry official said.

“Technically speaking, most food commodities improve their economic viability through cold chain intervention,” according to Anthony S. Dizon, president of the Cold Chain Association of the Philippines.

In an e-mail, Mr. Dizon added: “The primary factors are protection of food safety, extension of useful product life, and minimization of food waste.”

Cold storage facilities preserve fruits and vegetables as well as seafood and meat products until they are ready for market. They reduce post-harvest losses for the farmers, who gain the ability to meet demand even when supply dips over the course of the year.

Asked about possible partnership between the private sector and the government to build more cold storage facilities, Mr. Dizon said that “the possibilities are always there but realistic implementation will depend on the terms of reference.”

According to the Public-Private Partnership (PPP) Center, projects eligible for PPP implementation include the building of storage and processing facilities, with PPPs governed by the Build-Operate-Transfer Law.

“These can be wholly or partly financed, constructed, and operated by private sector partners,” it said.

Mr. Dizon said that the private sector can provide technical assistance in the design, as well as on the construction of the facilities and selection of equipment.

“Viability of investment in cold chain infrastructure is always anchored on the supposition that all components of the supply chain will be functioning in synchrony, from production to distribution and consumption,” he said.

Department of Agriculture (DA) Deputy Spokesman Rex C. Estoperez said on the sidelines of a briefing that the DA is open to partnerships with the private sector.

“We can save on budget resources via partnerships. We can redirect our resources to those priority areas that the President wants to allocate funds to,” he said.

Mr. Dizon added that building cold storage facilities will require “the availability of support infrastructure such as ports, roads and electric power supply.” — Sheldeen Joy Talavera