Bid to develop cold chain infrastructure

US-based agriculture development organisation Venture37 signed a memorandum of understanding with City Bank Capital yesterday to collaborate in the development of a robust and efficient cold chain infrastructure in Bangladesh.  

Affiliated with Land O'Lakes, Inc., one of the largest farmer-owned agribusinesses in the US, Venture37 has been delivering market insights and technical expertise to agricultural development projects around the world since 1981.

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This partnership will focus on increasing investment opportunities in the areas of cold chain networks, warehousing systems, energy efficiency investment for cold storage, and temperature-controlled logistic services, says a press release.

Venture37 aims to implement innovative solutions by increasing awareness and education among farmers and producers about the importance of proper post-harvest management and the use of safe preservation techniques.

The two organisations will collaborate in holding conferences, seminars, and workshops to promote awareness and understanding of the temperature-controlled logistic sector.

The partnership will focus on increasing investment opportunities in the areas of cold chain networks, warehousing systems and energy efficiency

With a yearly growth rate of 15 per cent from 2014 to 2018, the market size of Bangladesh's agro-processing industry has reached approximately $4.81 billion, combining both domestic and export volume, according to financial services provider City Bank Capital.

The absence of temperature-controlled logistics infrastructure in Bangladesh results in significant post-harvest losses, as reported by The Food and Agriculture Organization of the United Nations, with post-harvest loss of 26 per cent for fruits and 12-30 per cent for fish.

These inefficiencies can have a severe impact on the country's food security and economy so the cold chain infrastructure needs to develop, said Ershad Hossain, managing director and CEO for City Bank Capital.

Many corporates want to add to the infrastructure. "We will give the financial advice while Venture37 technical advice," he said.

"This partnership will not only enhance the competitiveness of the temperature-controlled logistic sector but will also create new opportunities for businesses and investors alike," he added.

Venture37 is already providing technical assistance under a project of the United States Department of Agriculture named Bangladesh Trade Facilitation Project.

In 2021, the USDA launched a $27 million project to support the government to expand cross border trade in agricultural goods by simplifying and automating import and export processes and improve capacity of laboratories and warehouses.

The five-year scheme, Bangladesh Trade Facilitation Project, also aims to work on fostering private and public investment in cold storages facilities and temperature-controlled logistics to make international trade of agricultural products more efficient.