Philippines allocates US$51M for cold storage construction to support farmers

PHILIPPINES – The Department of Agriculture (DA) has allocated P3 billion (approximately US$51.4 million) for the construction of 99 hybrid cold storage facilities to extend the shelf life of fruits, vegetables, and high-value crops.

With most small units expected to be operational within the year, the cold facilities will also ensure year-round supply and price stability.

Agriculture Secretary Francisco P. Tiu Laurel Jr. emphasized that the cold storage facilities will be both cost-effective and environmentally friendly. “This approach not only addresses immediate agricultural needs but also aligns with broader environmental goals,” he said.

These storage units will operate using electricity from renewable sources such as solar and wind, in addition to power supplied through the national grid. This initiative aims to reduce post-harvest losses, which have long been a challenge for Filipino farmers.

“By improving the cold chain infrastructure, we will strengthen the agricultural sector, reduce farm losses, extend the shelf life of agricultural products, stabilize supply and prices, and ensure food security,” Secretary Tiu Laurel said.

The cold storage initiative is part of a larger logistics plan developed by the DA’s Agriculture and Fisheries Logistics Office (AFLO), led by Assistant Secretary for Logistics Daniel Alfonso Atayde.

The strategy includes improving road networks, agricultural seaports, and an integrated cold chain system to streamline the movement of agricultural products nationwide.

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

In addition, two large facilities are planned—one in San Jose, Occidental Mindoro, and another in Cabanatuan, Nueva Ecija—along with 31 modular units distributed across various locations.

These investments will help preserve perishable goods, benefiting both farmers and consumers.

“The budget allocation for cold storage in 2025 is a strategic approach towards bolstering this critical aspect of the agricultural sector,” Atayde said.

He stressed that the project will help stabilize food prices, reduce losses, and increase earnings for farmers and fisherfolk.

Global cold storage market on the rise

The construction of large storage facilities is expected to take 18 to 22 months after the awarding of contracts. Each facility will have a capacity of 2,800 to 3,500 pallet positions, depending on the stored products.

The DA will oversee these storage units in partnership with local government units and farmers’ cooperatives to ensure efficient operations.

According to the Cold Storage Market Size & Share | Industry Report, 2030 by Grand View Research, the global cold storage market was valued at US$159.7 billion in 2024 and is projected to grow at an annual rate of 18.1% from 2025 to 2030.

This growth is driven by increasing demand for refrigerated storage solutions, especially in developing economies where organized retail sectors and trade of perishable goods are expanding.

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