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The Department of Agriculture is eyeing to build more than 200 cold storage facilities and establish 17 deep sea ports for agricultural products nationwide to reduce food spoilage
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99 facilities are expected to be built this year and next, according to DA assistant secretary for logistics Daniel Alfonso Atayde
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A portal that will expedite processing of application for permits to register cold storages may also be launched in June
The Department of Agriculture (DA) is eyeing to build 202 cold storage facilities from this year until 2028, with 99 to be constructed this year and next, according to assistant secretary for logistics Daniel Alfonso Atayde.
These include a mega cold storage facility in Nueva Ecija, and modular cold storages in all provinces nationwide, Atayde told media in an interview at the sidelines of a recent industry event.
DA is also working on an online portal that will expedite processing of application for permits to register cold storages, Atayde said in a panel discussion at the event. The portal may be launched in June.
The cold storage project together with the planned development of 17 deep sea ports for agricultural products, in partnership with the Department of Transportation and the Philippine Ports Authority, is expected to help reduce food spoilage and lower food costs, the DA official said.
Agriculture Secretary Francisco Tiu Laurel, Jr. in September last year said an estimated P40.5 billion will be required to develop 17 agricultural ports to accommodate large ships and help cut the logistics cost for farm inputs. Transportation Secretary Vince Dizon in February said President Ferdinand Marcos, Jr. directed his department to expand the port system, particularly agricultural ports, to lessen the cost of goods and transport services.
Tiu Laurel early this year said improvement of the country’s cold chain infrastructure “will strengthen the agricultural sector, reduce farm losses, extend the shelf life of agricultural products, stabilize supply and prices, and ensure food security.”
The cold storage project is part of a comprehensive logistics master plan designed by DA through the Agriculture and Fisheries Logistics Office headed by Atayde. The plan encompasses not only cold storage facilities but also the development of a robust road network, agricultural seaports, and an integrated cold chain network to streamline the distribution of agricultural products throughout the country.
Atayde said cold storages will be established in production areas and will be connected to institutional buyers so they can buy directly from farmers and no longer need middle men.
One of the challenges of cold storage facilities is high power rates, which is why the new modular cold storages will be equipped with thermal cooling panels that will maintain the coolness for two days even without electricity, Atayde said. Under cold chain guidelines the DA is crafting, cold storage facilities must be energy efficient and can be powered by renewable energy sources such as solar and wind.
Tiu Laurel earlier said P1.5 billion in unprogrammed funds in 2024 will be used to kick start the development of the cold storages, while another P1.5 billion was included by the DA in the General Appropriations Act for 2025.
READ: DA rolls out P3B cold storage project
The unprogrammed funds will be spent on building around 65 small or modular chiller-type cold storage facilities across the country as well as a large cold storage facility in Camarines Sur. Two large facilities—one possibly in San Jose, Occidental Mindoro and another in Cabanatuan, Nueva Ecija—and 31 modular units across the country are also planned.
Construction of the large storage facilities is expected to take between 18 and 22 months after contract awarding. Each facility will have a capacity ranging from 2,800 to 3,500 pallet positions. The DA will oversee and manage the mega-cold storage facilities through and in cooperation with local government units, and farmers’ cooperatives and associations to ensure efficient operations and community involvement.
The modular refrigerated warehouses, on the other hand, are the size of a 40-foot container van. Capacity will be between 7 and 15 metric tons, depending on agricultural products to be stored.
These warehouses are expected to be operational within three months, allowing for a swift enhancement of cold storage capabilities nationwide. – Roumina Pablo
