General Queries on Cold-chain

1. What are the components of well-designed cold-chain system?
Simply explained, a good cold-chain is one that is designed to integrate the entire set of activities needed to transfer the harvested or produced value from source to consumer, while ensuring all climate controls for the value under its care. Such a system would also safeguard the environment, be efficient in managing waste and comply with food safety standards.

Perspective on India's Cold-chain

India has developed an enviable capacity in the cold storage format across the country. As per the 2014 report of IARW (International Association of Refrigerated Warehouses), India had 131 million cubic metres in cold storage capacity, overtaking USA which has 115 million cubic metres. China has the third largest capacity globally with about 76 million cubic metres in cold storage space. The worldwide capacity in refrigerated warehouses was reported as 552 million cubic metres in this report by IARW. Between May 2014 and July of 2015, India added another 200 units or a little more than one million tons to its cold storage space. Though about 5% of the facilities may have become obsolete over the years, India can now lay claim to having created almost 7200 cold stores equivalent to about 33 million tons in holding size, most of these over the past decade.

Shelf life is not storage life

Holding period in a warehouse is opportunity lost.

Keeping food secure for long is not always a worthwhile achievement... making sure it arrives for gainful end-use is the real target. Aim to make sure you reach the consumer - get on the shelf!

The Chain, Interrupted or unInterrupted

Cold-chain value systems and options to be considered by planners. (also see Visions and Value chains)

1. The strategic business interest & capability of any concerned enterprise will define the scope and extent of the value chain of each such enterprise. Frankly, the involved models are easily differentiated and would extend across the following two basic categories-

 

a. Uninterrupted farm-to-fork sourcing and distribution of agricultural produce, especially perishables, wherein the fresh whole food does not undergo any change to its primary and natural characteristics. This value chain system is empowered with the agri-logistics intervention that services an out-reach into multiple markets through connectivity. This market link is key to generate a revenue stream that is volume based, and in turn feeds improved post-harvest handling, resultant growth in produce quality & productivity and also offers scope to stabilise demand-supply fluctuations.

Definitions are for convenience

At a recent formal discussion of a PPP proposal, the attending resource persons (consultants from one of big 5), rather categorically reasoned that food processing is not a part of cold-chain business and hence such units were not considered in the project under debate. Hearing such blanket statements is a very distressing experience, particularly when long term plans are being developed with the overarching aim of public good. Such single-minded differentiation between cold-chain and processing units stems from an academic or research bent of mind, inexperienced in matters of business. 

Yet, if the aim is optimal utilisation of resources, with profitability and success in mind, then these narrow interpretations need to be shed and put aside, firmly. In the world of commerce, reason relates to align opportunities, maximise revenue, increase profitability options - common business sense.

Decisions, decisions...Pack-house play

A modern pack-house is the initiator of the cold-chain for fruits and vegetables, and a cold store the midway platform. A pack-house is effectively the intelligent nerve centre of cold-chain, and it inherently sets off multiple logistics or supply lines catering to various demand centres. At such a pack-house, after the harvest is sorted into marketable or value based lots, they are then directed into different elemental value chains, some to continue within the cold-chain and some without.

©Pawanexh Kohli

FRESH PRODUCE FACTS

• Fresh fruit & vegetables are living tissue... even after harvest, they continue live and to breathe. This respiration produces carbon dioxide, water and heat and causes ageing or deterioration of quality.

• The rate of ageing of the produce is largely determined by its rate of respiration. Respiration and physiological activities can be slowed to minimise the rate and effects of ageing but respiration can never be completely stopped or the produce (fruit or vegetable) dies. 

• The rate of respiration is temperature dependent. Produce when kept cool will have a lower rate of respiration and lowered rate of deterioration.

Capturing Stranded Cold

Cold-chain has at its heart the concept of temperature control. This elicits many other requirements, some which are needed to counter the side effects of such thermal regulation. Yet, refrigeration is a primary need and this places a demand for energy, sometimes an inordinate amount, which is converted into the desired thermal change. Usually, the most common form of energy used is electrical, which in turn runs refrigeration equipment.

The highest energy load is from compressing a refrigerant, which is later expanded in the evaporator to affect the cooling experience. Electricity is available from our grid – thermal or hydel, from solar incidence, wind power, from fuel cells, fuel powered turbines and generators. This electricity can also be stored in rechargeable cells or batteries. Cold too can be stored!

The majority of energy expended goes into managing the refrigerant, expansion of which causes cooling. If a cold fluid can be accessed, without recourse to refrigeration, the entire energy load would drastically come down.

One cool energy source is geothermal water – underground water from deep wells are normally around 22°C to 24°C all through the year (temperature of groundwater is generally equal to the mean air temperature above the land surface. It usually stays within a narrow range year-round).

Market for Fruits in India

India is viewed as a steady state consumption market, including for fruit produce…and it has lived up to this perception! Over the last 10 years, imports into India of apples, kiwis, pears, grape have seen phenomenal growth; not merely doubled or quadrupled, but more than 10 fold growth has been witnessed.

On the domestic front, Indian farms repeatedly break production records but one does not see a likewise increase in trade volumes from these domestic source points. What prevents our own produce from spanning the sub-continent and emulate the growth our imports have witnessed?

Is it that our consumers have a penchant for imported fruit, a specific flavor, a specific brand?