DA to start building up to 99 cold storage facilities; budget P3B

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The Department of Agriculture (DA) said it is set to build as many as 99 cold storage facilities starting this year with a total budget of P3 billion to help extend the shelf life of fruits, vegetables and high-value crops.

The whole project should help reduce farmers’ losses and boost food security, as well as ensure supply and price stability, the agency said in a statement yesterday.

Agriculture Secretary Francisco Tiu Laurel Jr. said sustainability and low cost of operation are the key features of the cold storage facilities, with most of the small facilities expected to start operating this year.

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The facilities will be built using a hybrid type of infrastructure that could be powered by electricity from renewable energy sources, such as solar and wind, as well as those supplied through the grid to ensure efficient and environmentally friendly operations, the DA said.

Programmed and unprogrammed funds

Tiu Laurel said President Ferdinand Marcos Jr. approved the use of P1.5 billion in unprogrammed funds in 2024 to kickstart the development of the cold storage network, while another P1.5 billion was part of the General Appropriations Act for 2025.

“The unprogrammed funds will be spent to build (about) 65 small or modular chiller-type cold storage facilities across the country and a large cold storage facility to be built in Camarines Sur,” the DA secretary added.

The agency said there are also plans to build two large facilities possibly in San Jose, Occidental Mindoro and another in Cabanatuan, Nueva Ecija, as well as 31 more modular units across the country.

Construction of large storage facilities is expected to take about 18 to 22 months after the awarding of the contract, and each facility will have a capacity of 2,800 to 3,500 pallet positions, depending on the products, the DA said.

The department will also oversee and manage these mega-cold storage facilities through and in cooperation with local government units, farmers’ cooperatives and associations to ensure their efficient operation and community involvement.

Warehouse sizes

The modular refrigerated warehouses are of the same size as a 40-foot container van and will have a capacity of between 7 and 15 metric tons, depending on the agricultural products to be stored, the DA said. These warehouses are expected to be operational within three months of construction.

The cold storage development project is also part of a comprehensive logistics master plan designed by the agency through the Agriculture and Fisheries Logistics Office.

The plan encompasses not only cold storage facilities but also the development of an expansive road network, agricultural seaports and an integrated cold chain network to streamline the distribution of agricultural products throughout the country, the DA added.

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