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By 2030, urgent need for efficient cold chain network
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Tuesday, 31 December, 2024, 08 : 00 AM [IST]
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Ganesh Gaikwad & Dr R B Kshirsagar
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A cold chain is a temperature-controlled supply chain. A cold chain is a type of supply chain with controlled temperature from the stage of production, through to the transportation stages, storage, distribution processes and delivery to the end-user. Briefly, a cold chain is a temperature-controlled supply chain of sensitive goods. The cold chain makes modern life possible through the safe transportation of food, pharmaceuticals, and other environmentally sensitive products (ESPs) from the moment they are grown or extracted, during the manufacturing process and to the final consumers. Based on the type of the product, their transportation is accomplished by refrigerated railcars, trucks, cargo ships and air cargo. Cold chains play a vital role in global trade. While there are millions of people starving or suffering from diseases in the world, a poor cold chain makes billions of fresh foods and medicines waste.
Cold chains require evaluation and control systems based on the characteristics of the products to keep their freshness and quality during the process to get to consumers. Therefore, it is necessary to monitor the temperature in the whole cold chain process to maintain the constant temperature and guarantee the quality and safety of products in the cold chain. For the successful implementation of a cold chain, we should know the type and characteristic of the product. Based on studies that have been conducted in the cold chain domain, we classify them into four categories including perishable foods such as dairy products and beverages, flowers and ornamental plants, fresh agricultural products and pharmaceutical products.
Cold Chain Market Challenges:
Cold chain market experiences certain challenges on the ground of packaging failure. Low quality packaging of products by manufacturing companies results in damage and decreased shelf life of products during transportation. Cold chain primarily works to control the temperature; inadequate training can destroy the product quality making it unsuitable for end-user usage, hence, affecting the global cold chain market. Aforementioned critical issues can be handled both by cold chain and manufacturing companies with proper monitoring and tracking of product delivery, incorporating advanced technical solutions, adequate training to workforce, and strategic solutions for abrupt situations.
Some challenges that cold chains face include:
Inadequate infrastructure; High operational costs;;Regulatory complexities; Damaged cooler or freezer doors; Condensation; Microbial growth in the freezer; Excessive heat exposure; Damaged goods.
Importance of Cold Chain Management
1. Preserves Product Quality
The key benefit of cold chain management is its ability to safeguard the quality and freshness of products. Whether it's farm-fresh produce, pharmaceuticals, or frozen foods, maintaining the optimal temperature throughout the cold supply chain is essential for preventing spoilage and preserving shelf life.
2. Minimises Waste
Implementing cold chain management practices reduces waste in the supply chain. By maintaining precise temperature control, companies can minimise the risk of product spoilage and shrinkage. This maximises the efficiency and minimises environmental impact.
3. Ensures Regulatory Compliance
With strict regulations governing the storage and transportation of perishable goods, adherence to cold chain standards is not just a matter of quality assurance but also regulatory compliance. If businesses or industries fail to comply with these standards, it can result in fines, product recalls, and damage to brand reputation.
4. Meets Customer Expectations
Today, businesses are altering their strategies based on customer behaviour. Hence, customer expectations are kept on top and ensured that product quality and freshness are maintained. Proper end-to-end fulfilment allows businesses to meet and exceed these expectations, which ultimately promotes customer loyalty and trust.
5. Improves Product Safety
Cold chain management, while preserving product quality, also improves safety by mitigating the risk of contamination and bacterial growth. Maintaining consistent temperature controls throughout the cold supply chain reduces the likelihood of foodborne illnesses and ensures that products meet strict safety guidelines.
6. Drives Innovation and Sustainability
When it comes to packaging, transportation, and energy efficiency, cold chain management brings innovation by implementing sustainable supply chain practices. Whether using eco-friendly packaging material or energy-efficient refrigeration technologies, businesses and industries look forward to implementing innovative solutions to reduce environmental impact and optimise resource utilisation.
Lack of cold chain facilities for the food processing sector in 2030
Despite technological advancements, the cold chain infrastructure remains a critical gap in the food processing sector, particularly in developing regions. By 2030, the growing global demand for fresh, perishable, and processed food highlights the urgent need for an efficient cold chain network. Below is a detailed overview of the issue:
Key challenges in cold chain facilities by 2030
1. Persistent Post-Harvest Losses
- Fruits, vegetables, and dairy products remain the most vulnerable to spoilage due to the lack of sufficient cold storage and transportation systems.
- Developing countries could still lose up to 30% of agricultural produce post-harvest without significant investments in cold chains.
2. Inadequate Cold Storage Infrastructure
- Most existing cold storages cater to a limited range of products, such as potatoes or single commodities, and lack capacity for diverse perishable goods.
- A growing food processing industry demands multi-commodity cold storage facilities, which remain underdeveloped in many regions.
3. Limited Refrigerated Transportation
- By 2030, rising food demand will necessitate efficient refrigerated transportation, but high operational costs and limited reach will hinder widespread adoption.
- Rural areas, where much of the raw produce originates, often lack access to refrigerated trucks, creating supply chain bottlenecks.
4. Energy Constraints
- Cold storage facilities are energy-intensive, and reliance on non-renewable energy sources increases costs and environmental impact.
- Many regions lack affordable, reliable electricity, making cold chains unsustainable in rural and remote areas.
5. High Costs of Setup and Maintenance
- Establishing cold chains requires significant capital investment, which small-scale producers and processors cannot afford.
- Maintenance of temperature-controlled environments remains expensive, limiting long-term sustainability.
6. Fragmented Supply Chains
- Inefficient and fragmented cold chain networks still prevent seamless farm-to-market transitions, increasing wastage.
- Poor integration of cold chains with processing units, storage facilities, and retail outlets exacerbates delays and inefficiencies.
7. Lack of Technology Adoption
- Many cold chains lag in adopting advanced technologies such as IoT-based temperature monitoring, predictive analytics, and automation.
- Absence of digitisation hinders real-time tracking and management of perishable goods.
8. Insufficient Policy Support
- Inadequate government policies and subsidies for cold chain development slow progress, particularly in regions where food security is already fragile.
Implications of cold chain deficiency in 2030
1. Economic Impacts
- Losses for Farmers: Inability to preserve perishable produce leads to revenue losses for farmers and reduced income stability.
- Limited Exports: Without adequate cold chains, processed and fresh foods fail to meet international quality standards, limiting export potential.
- Higher Food Prices: Increased spoilage creates scarcity, driving up the prices of fresh and processed foods.
2. Food Security Concerns
- Wastage of perishable food aggravates global hunger and malnutrition.
- A lack of cold chain facilities undermines efforts to stabilise food supplies in both rural and urban areas.
3. Environmental Consequences
- Food wastage contributes to higher greenhouse gas emissions, including methane from decomposing organic matter.
- Inefficient cold chains relying on non-renewable energy sources increase the carbon footprint of food production and distribution.
Future solutions for cold chain gaps by 2030
1. Investment in Infrastructure
- Governments and private stakeholders must prioritise cold chain infrastructure through public-private partnerships (PPPs).
- Incentivise investments in rural areas with subsidies, low-interest loans, and tax benefits for cold storage development.
2. Adoption of Renewable Energy
- Promote the use of solar-powered cold storage facilities to address energy challenges in remote locations.
- Develop energy-efficient cooling technologies to reduce operating costs and environmental impact.
3. Advanced Technology Integration
- Implement IoT sensors for real-time temperature and humidity monitoring during storage and transit.
- Use blockchain for traceability and better supply chain management.
4. Development of Multi-Commodity Storage
- Build cold storages capable of handling multiple commodities simultaneously to maximise utility and flexibility.
5. Enhanced Refrigerated Transportation
- Expand fleets of affordable refrigerated vehicles, especially for first-mile connectivity in rural areas.
- Introduce shared logistics models to reduce transportation costs for small-scale farmers and processors.
6. Skill Development and Training
- Train operators and technicians in advanced cold chain management to ensure efficiency and minimise spoilage risks.
7. Strengthening Policies and Incentives
- Formulate clear policies to support cold chain infrastructure development, including subsidies and grants.
- Set regulations to ensure that cold chain operations adhere to environmental standards.
8. International Collaboration
- Encourage knowledge-sharing and investment from countries with advanced cold chain systems.
- Collaborate with global organisations to standardise and improve cold chain practices worldwide.
The lack of cold chain facilities remains a pressing issue in 2030, particularly for regions heavily reliant on agriculture and food processing. Addressing this gap requires strategic investments, technological innovation, and policy support to build sustainable, efficient, and integrated cold chain networks. Such efforts will not only reduce food wastage but also enhance food security, economic growth, and environmental sustainability.
(Gaikwad is research scholar, College of Food Technology,
VNMKV, Parbhani; Dr Kshirsagar is professor,
College of Food Technology, VNMKV, Parbhani)
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