cold chain dubai 26_oct08[1]
TRANSCRIPT
INTEGRATED COLD CHAIN FOR FRESH PRODUCE
Sanjay Sethi, VP- Food & Agri, Technopak AdvisorsCold Chain Forum: Dubai 26th & 27th October, 2008
Table of Contents
OVERVIEW
CURRENT STATUS OF COLD CHAIN IN INDIA
KEY CHALLENGES
GROWTH DRIVERS
RECENT DEVELOPMENTS
OUR SUGGESTIONS
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Cold Chain: An Overview
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A logistic system for ensuring ideal storage conditions for the perishables from the point of origin to sale
Cold Chain retains the longevity of
• Product characteristics • Active ingredients• Freshness • Nutritive value
Existing supply chain
Proper supply chain
Buying Behaviour
1. Appearance2. Taste and Flavour3. Freshness, Ripeness4. Price5. Nutrition Value6. Shelf Life
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Small breaks in the cold chain
Cold Chain: Market Size & Potential
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•Total market size of $ 2.6 bn• Cold storage - 88%• Cold transport -12%
•Storage & transportation include facilities like pre cooling, grading & sorting
•Cold chain has potential to grow to $ 12.4 bn by 2015
•Cold transportation would also witness higher growth
Cold Storage: Capacity
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• Total installed capacity of 22 million MT and additional capacity of 114 million MT is required by 2015
• Two states - Uttar Pradesh & West Bengal have 65% of total installed Capacity • Larger capacity per installed units are required (at production as well as
consumption centers)• Investment required of $ 5 billion over the next 5 years
Cold Storage Utilization
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• High fluctuation in capacity utilization due to seasonality of produce
• Potatoes occupies maximum capacity for 4-5 months of storage cycle
Reefer Transport
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Key facts:• 25000 reefer vehicle for
perishables
• Dairy reefer has 20000 vehicles, only 5000 left for rest of perishables
• Reefer Transport for:• Exports 2.5 million MT• Domestic consumption 1.5
million MT
Additional reefer vehicle requirement of 90 to 100 thousands by 2015
Airflow inside an Integral Reefer Container
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Airflow inside a refrigerated trailor
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Reefer container ship
Fresh Air Cargo
• Relaxation by Government of India for private air cargo
• Main commodities transported are fresh fruits & vegetables
• Reliance’s owned private cargo airport is coming at Jhajjar (Haryana)
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Cold Chain Utilization by Commodity Group
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Fruits & vegetables
Ice cream sector & confectionery
Dairy products
Meat & marine products
Floriculture
Market Potential of F&V
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• Market size will grow from $ 47 billions in ‘07 to $75 billions by 2015 @ 6%
• Value contribution of processed F&V would grow from 7% in ‘07 to 35% in 2015
• High level of processing will need robust Cold Chain with respect to:• Regular Supply• Storage of raw Finished Product• Maintaining the Quality• Manage the traceability
Wastage of Fresh Produce
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Total wastage of fruits & vegetables is about 25-30%
Break-up of wastage from farm to state level (%value)
F&V Sensitivity to Freezing
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Most sensitive Moderately sensitive Least sensitive
Potato Apples Beets
Tomato Oranges Carrots
Cucumber Carrots Turnips
Bananas Peas Dates
Beans Cauliflower Cabbage
Chilling Injury
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CommodityApproximate Lowest Safe Temp.
oF oC
Banana 55 12.8
Beans 55 12.8
Cucumber 45 7.2
Mangoes 50 10
Potato 38 3.3
F&V subject to chilling injury at below freezing temperatures
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Cold Chain Logistics
• Procurement and delivery systems• Pre-cooling facilities• Refrigerated vehicles• Cold stores / C A stores• Grading, sorting and packaging • Warehouses• Information systems• Traceability issues
Existing players in cold chain industry
Snowman
Carriers
Crystal
Refcon
Bulkani deep freeze
Glacio cold chain
R.K. Foodland
Trans cold chain
Sensitech
Fresh & Healthy(Concor)
Weber distribution
Apollo Everest Kool Solutions
GATI (Kausar), And Many more
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Key Challenges
Seasonal production and irregular supply
High level of wastage and improper handling of produce
Inadequate Infrastructure Post harvest, storage and marketing infrastructure Inadequate and erratic power supply Poor road infrastructure
Inadequate capital availability
High capital cost - working capital & project cost
Lack of advance technologies and producer awareness
Lack of trained and skilled human resource
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Critical Success Factors
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Solar Powered Refrigerated Warehouses
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Modern Loading Dock
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ColdSAFE Packaging Systems
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Insulated Containers
t e c h n o p a k
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Growth Drivers
Huge production and fast growth in production
Increasing demand for perishable food products
Increasing growth of food processing
Growth in organized food retail
Rising middle class population & disposable income
Changing food habits
New technologies
Government support
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Fruit & Vegetables Retail29
The fresh fruit & vegetable area offers choice...
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...in a market-style setting.
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Fruit & Vegetables Retail
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Fruit & veg are also found pre-packed, cut and washed for convenience.
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Fruit & Vegetables Retail
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Under the Foodhall banner, P 'n P has also developed pre-cut vegetables and 'soup packs'.
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Fruit & Vegetables Retail
Recent Developments
Technological innovations PDF data logger – Libero (ABB)
New players (M&A, JV’S): Apollo – Spire : Apollo Everest Cool Solutions GATI
Government Initiatives 100 % FDI is allowed Cold Chain Infrastructure Schemes(CCIS) Development of Strategic Distribution Centers (SDC) Creation of National Green Grid
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Analog & Digital Data Loggers
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National Green Grid - The Concept
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End to end solutions
Planning through mapping of different modes of transports
Will lead to the development of “National Market for Perishables”
National Green Grid36
Consumption Centers
Green Grid Zone
The Blue Print
Our Suggestions
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Co-ordinated planning & execution at both production and
consumption bases
Create adequate integrated cold chain - logistics infrastructure
Technology up gradation & maintenance
Capital infusion - private sector participation, FDI
Developing support infrastructure
Risk management by providing services and information in time
Enabling regulations
“We are out there in the real world.
We are not in a controlled chamber”
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