Agroinsurance

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Philippines - DA allots P3 billion for cold-storage facilities

27.01.2025 491 views

The Department of Agriculture (DA) is allocating P3 billion for 99 cold-storage facilities to extend the shelf life of fruits, vegetables and high-value crops, and assure continuous supply and price stability.

DA Secretary Francisco Tiu Laurel Jr. said the provisions would have low operation costs and will run by electricity or solar and wind power, making them efficient, sustainable, and environment-friendly.

"This approach not only addresses immediate agricultural needs, but also aligns with broader environmental goals," Tiu Laurel noted.

The project is part of DA's comprehensive logistics master plan designed through its Agriculture and Fisheries Logistics Office (AFLO), led by Assistant Secretary for Logistics Daniel Alfonso Atayde.

Aside from cold-storage spaces, the plan includes the development of road networks, sea ports, and a cold-chain network to streamline distribution of agricultural products across the country.

Tiu Laurel said President Ferdinand Marcos Jr. has approved the use of P1.5 billion unprogrammed funds from 2024 for the development of the cold-storage network, while the DA added another P1.5 billion through the 2025 General Appropriations Act (GAA).

The unprogrammed funds will be used to build 65 small or modular chiller-type cold-storage facilities across the country, and a large one to be built in Camarines Sur, Tiu Laurel noted.

There are plans to build two large facilities in San Jose (Occidental Mindoro) and Cabanatuan (Nueva Ecija), along with 31 modular units throughout the country.

Most of the smaller facilities will be operational this year.

Construction of large cold-storage facilities will take 18 to 22 months. Each will have 2,800 to 3,500 pallet capacity, depending on the products. These will be managed by the DA in coordination with local government units (LGUs) and farmers' cooperatives and associations (FCAs).

Modular refrigerated warehouses have sizes similar to 40-foot container vans, and will have a capacity of 7 to 15 metric tons, depending on the products. These are operational after three months of construction.

"The budget allocation for cold storage in 2025 is a strategic approach towards bolstering this critical aspect of the agricultural sector," Atayde said, noting that the facilities will reduce farm losses and increase farmer and fisherfolk income, and help with food security and price stability.

Source - https://www.manilatimes.net

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