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The Philippines can significantly reduce post-harvest losses and boost food security by relocating cold storage and order fulfillment facilities nearer to farms and adopting a shared-facilities framework, a logistics expert says
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FAST Logistics Group ColdChain business unit head Marc Anthony Dizon says the country needs about 1.4 million pallet positions to meet annual food consumption requirements but currently has only around 860,000
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Dizon advocates a shared cold chain logistics model, allowing multiple producers to use the same infrastructure while maintaining commodity-specific storage zones
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Locating processing facilities near production sites lets producers sort, clean, and transform goods before transport, cutting logistics costs and waste
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Dizon noted the US-Iran war has affected fuel prices, reinforcing the need for cost-efficient, shared logistics models
The Philippines can significantly reduce post-harvest losses and improve food security by relocating cold storage and order fulfillment facilities closer to agricultural production areas and adopting shared cold chain models, according to a logistics industry expert.
Speaking at the 2026 Mid-Year Food and Agribusiness E-Conference organized by the University of Asia and the Pacific-Center for Food and Agribusiness, FAST Logistics Group ColdChain business unit head Marc Anthony Dizon said the country’s cold chain strategy should evolve beyond simply expanding storage capacity to focus on where facilities are built and how they are utilized.
“We need cold storage closer to where food is produced, while making these facilities accessible through shared logistics models that allow more farmers and food businesses to benefit from modern cold chain infrastructure,” Dizon said during the virtual conference, which was attended by food and agribusiness experts, industry stakeholders, and members of the academe.
According to Dizon, the Philippines requires around 1.4 million pallet positions to meet annual food consumption requirements, but currently has only about 860,000, with much of the country’s cold storage capacity concentrated near major consumption markets like Metro Manila rather than agricultural production areas.
He said locating cold storage and value-adding processing facilities near harvest sites or livestock production areas allows producers to quality-check, sort, clean, and transform products into ready-to-sell or ready-to-eat goods closer to the source. This reduces the need to transport non-value-adding parts, excess weight, or waste to distribution centers and consumer markets, allowing producers to move only market-ready goods and use transport capacity more efficiently.
Dizon added that the approach also reduces the need to establish processing operations in Metro Manila, where real estate and labor costs are generally higher. “Producers avoid transporting non-essential weight and waste over long distances, making logistics operations more efficient while lowering overall supply chain costs,” he said.
Collaborative cold chain approach
Dizon said strategically locating processing and cold storage facilities near production areas also creates opportunities for growers to leverage shared logistics infrastructure. Instead of each small producer investing in individual processing facilities, multiple growers can use the same infrastructure while the facility operator benefits from higher utilization and economies of scale, a principle he said extends to warehousing and transportation as well.
He advocated for a shared cold chain logistics model in which businesses share warehouse infrastructure and transportation assets while maintaining dedicated storage environments based on each commodity’s specific temperature, humidity, and food safety requirements.
He emphasized that shared cold chain does not mean storing different agricultural commodities in the same environment, noting that products such as onions require storage conditions that differ from other fruits, vegetables, meat, or seafood.
“Shared cold chain is about sharing infrastructure efficiently while maintaining commodity-specific storage zones and food safety standards,” he explained.
Dizon said the shared logistics model gives small- and medium-sized agricultural enterprises access to cold-chain capabilities that would otherwise require significant capital investment.
Managing the impact of rising fuel prices
He noted the US-Iran war has impacted fuel prices, highlighting the need for shared logistics and cost-effective supply chains.
Beyond physical infrastructure, Dizon emphasized the need for increased use of digital technologies to enhance food supply chain planning. He stated that a comprehensive agriculture database, backed by digital analytics, would improve inventory visibility, demand forecasting, and distribution planning across the country.
“Food security is not just about producing more food. It’s about ensuring we have the logistics infrastructure and technology to preserve food quality and move products efficiently from farms to consumers,” Dizon said.
His recommendations echoed broader discussions at the conference, where industry experts identified logistics modernization as one of the country’s most important opportunities for strengthening food security amid geopolitical uncertainty and climate volatility.
While shared logistics presents challenges, these can be effectively managed with the support of a reliable third-party logistics (3PL) partner, which can provide the systems, expertise, and operational controls needed to make shared logistics efficient, transparent, and dependable.
READ: FAST Logistics pushes co-loading in FMCG sector to cut fuel demand
FAST provides integrated cold chain solutions in the Philippines with 30,000 pallet positions across frozen, chilled, and ambient temperatures, including storage, refrigerated transport, and services like blast freezing.
With 50+ years supporting top food producers, FAST runs one of the Philippines’ largest logistics networks: over 160 facilities, 2 million square meters of warehouses, and 3,100+ trucks with advanced systems.
READ: FAST Logistics bats for faster supply chain sector digitalization
