Cold Chain Logistics Driving Food Security and Economic Growth - Logistics Executive
Industry, Insight

Cold Chain Logistics Driving Food Security and Economic Growth

Efficiency. Integrity. Safety. Our supply chains must provide all three of these attributes whether hot, cold, ambient, in the skies or sailing the seas.

By Mark Lutton
May 20, 2024 | 3 min read
At a Glance
  • Critical Role in Food Security and Economic Growth: Cold chain logistics is vital for driving food security and economic growth, particularly important for efficiently transporting perishable goods, like food and vaccines, while maintaining their integrity and safety.
  • Addressing Food Waste and Production Challenges:With the growing global population, enhancing food availability by reducing food wastage is more sustainable than increasing production. Integrating end-to-end cold chain services is essential to maintain product integrity and reduce the one-third of food currently lost or wasted globally.
  • Increasing Demand and Infrastructure Needs:The rise in middle-income consumers and their demand for high-value foods, combined with the lack of adequate infrastructure in high-production countries, highlights the need for better cold chain logistics. This includes integrating technology and infrastructure improvements to support the entire supply chain.
  • Economic Benefits and Global Trade Impact: Developing cold chain logistics brings significant economic benefits, including better food quality leading to higher prices in global markets, increased revenue for producers, improved standards of living for farmers, and growth in the food processing industry, thereby creating new business opportunities and positively impacting global trade.
Reading Time: 3 minutes

Cold chain logistics plays a crucial role in driving food security and economic growth by ensuring efficiency, integrity, and safety in our supply chains. In today’s globalized world, it is necessary to seamlessly transport perishable goods with complex storage and transportation requirements. While cold chain logistics is currently in the forefront for transporting vaccines that require sub-zero temperatures, it is even more critical for transporting food and enabling greater food security.

According to the United Nations, the world’s population is projected to reach nearly 10 billion people by 2050. With an additional 2 billion people needing to be fed, it is evident that current levels of food production are not sustainable. The Food and Agriculture Organization reports that one-third of food produced for human consumption is lost or wasted globally, amounting to about 1.3 billion tonnes per year.

To address these challenges, governments worldwide are implementing national food security strategies and exploring vertical farming. However, a simpler solution lies in improving our cold chain logistics services. Rather than increasing food production, we should focus on reducing food wastage by providing end-to-end integrated cold chain services to maintain product integrity throughout its lifecycle.

The issue of food security in 2050 is further compounded by the rise of the middle-income consumer who demands more meats and high-value imported foods. Unfortunately, countries with the highest fresh food production often lack the necessary infrastructure to support their production volumes, resulting in high levels of wastage. While agricultural technology innovations can increase production, they would be more effective when combined with improvements in end-to-end integrated cold chain logistics.

End-to-end integrated cold chain services refer to the process of getting perishable products, such as fruits, vegetables, meat, dairy, and seafood, into the cold chain as close to the time of harvest as possible and maintaining the appropriate temperature conditions throughout the entire journey, including the farm, processing center, transport vehicles, and sea or air cargo, until the consumer receives the product. A well-maintained cold chain ensures food quality and increases product integrity and lifespan through the use of refrigerated warehouses, mobile chiller units, reefer trucking, reefer containerized shipping, and temperature-controlled air cargo.

The development of cold chain logistics brings numerous benefits that extend to global trade, export growth, and overall economic growth. Improved food quality commands higher prices in global markets, reducing food wastage contributes to higher revenue potential for producers, and increased production volume supports the growth of the food processing industry and creates new business opportunities.

Benefits of Cold Chain Logistics

There are many benefits to the development of cold chain logistics, many of which spill-over to global trade, export growth and ultimately economy growth.

Trade impact benefits:

  • Improved food quality commands higher prices in global markets positively impacting GDP.
  • Less food wastage contributes to higher revenue potential for producers impacting income.
  • Farmers are able to fetch a higher price for their product which increases their standard of living and their ability to further invest in their farms.
  • Higher volume of production paves the way for the growth of the food processing industry creating new business.

Implementing cold chain logistics requires a collaborative effort involving the government, private sector, and producers. It cannot be limited to isolated storage facilities but should involve maintaining temperature-controlled links throughout the entire product journey. Governments should upgrade poor road networks and incentivize producers to utilize the cold chain. The private sector, with its financial resources, should be encouraged to invest in necessary infrastructure, such as capital-intensive warehouses and temperature-controlled technology. Producers need to be educated about reducing wastage and embracing available technology.

A feasibility study should be conducted before embarking on a large-scale cold chain logistics project. This study should consider the economic environment, market conditions, production areas, market potential, and warehousing and transport networks to determine the viability of the project.

In conclusion, leveraging cold chain logistics to enhance food security and promote economic growth involves increasing food availability by addressing waste issues, expanding food exports, improving storage and transportation standards, increasing the value of food products, and connecting producers to new markets through an end-to-end integrated cold chain logistics solution that ensures product integrity throughout its lifecycle.

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Mark Lutton
Principle–Logistics & Supply Chain

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