DA lines up P3-billion cold chain package
The Department of Agriculture (DA) has allocated P3 billion to build 99 cold storage facilities this year, seeking to stabilize retail prices and supply of fruits and vegetables while prolonging their shelf life.
“By improving the cold chain infrastructure, we will strengthen the agricultural sector, reduce farm losses, extend the shelf life of agricultural products, stabilize supply and prices and ensure food security,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement over the weekend.
It will be funded by a combination of P1.5 billion in unprogrammed funds in 2024, earmarked for the development of the cold storage network approved by President Marcos and another P1.5 billion from the DA’s budget this year.
The unprogrammed funds will be allotted to the construction of about 65 small or modular chiller-type cold storage facilities across the country and a large cold storage facility in Camarines Sur.
The DA said most of the small cold storage facilities are expected to begin operations this year.
Also in the pipeline are two large facilities in San Jose, Occidental Mindoro, and Cabanatuan City in Nueva Ecija and around 31 modular units across the country.
Designed to store fruits, vegetables and high-value crops, these facilities are expected to reduce farmers’ losses and maximize their returns as well as ensure food security and price stability, according to Agriculture Assistant Secretary Daniel Alfonso Atayde.
Tiu Laurel said the refrigerated warehouses are hybrid infrastructures powered by renewable energy sources such as solar and wind, along with electricity coming from the main power grid to ensure efficient and environmentally friendly operations.
Broader goals
“This approach not only addresses immediate agricultural needs but also aligns with broader environmental goals,” he added.
The DA said the development of large storage facilities is expected to take 18 to 22 months after the contract is awarded. Each facility will have a capacity of 2,800 to 3,500 pallet positions depending on what agricultural products are being stored.
On the other hand, modular refrigerated warehouses, with the size of a 40-foot container van, can store 7 to 15 metric tons of goods depending on the products.
“These warehouses are expected to be operational within three months of construction, allowing for a swift enhancement of cold storage capabilities nationwide,” the DA said.
The project forms part of a comprehensive logistics master plan designed by the DA through the Agriculture and Fisheries Logistics Office headed by Atayde.
“The plan encompasses not only cold storage facilities but also the development of a robust road network, agricultural seaports and an integrated cold chain network to streamline the distribution of agricultural products throughout the country,” it said.
