How to Start a Cold Storage Business?

 

Cold storage rooms help perishable goods like fruits and vegetables extend their shelf life without compromising quality. There is a growing demand for processed foods and changing dietary habits, fueling the rise of cold storage facilities. The surge in e-commerce investments in cold storage solutions for perishable items suggests that the cold storage business can provide big returns in the long term.

So, how do you start a cold storage business?

Five Steps for Establishing Your Cold Storage Business

Select Appropriate Location

Choosing the right location is one of the most important steps in the cold storage business. This is because it will directly impact product quality, transportation cost, and customer accessibility.

The proximity of a cold storage facility to the source of product and market can give you significant returns on your investment. Moreover, this can also reduce food waste, delivery time, and maximize profitability.

Good road network and transportation infrastructure around the cold storage facility is also crucial for smooth delivery operations. How much area your multi-commodity cold storage facility will require should be calculated based on the volume of fruits or vegetables you wish to preserve

Select Best Equipment

A well-equipped cold storage facility allows for proper temperature control when dealing with perishable goods. In turn, it helps keep products fresh for longer periods with minimal spoilage. Install best equipment that can withstand heavy loads and power outages in extreme heat conditions during the summer.

Here are some cold storage room specifications to consider:

• Dimensions: 14 ft x 10 ft x 10 ft

• Stored Goods: Fruits and Vegetables

• Capacity: 10 Metric Tonnes (MT)

• Humidity Level: 85-90%

• Initial Temperature for Produce: 28-35°C

• Insulation: 60mm Polyurethane Foam (PUF)

• Refrigeration Capacity: 30,000 Btu/hour

• Assumed External Temperature: 43°C

• Temperature Range: ± 2-4°C

Maintenance and Cleaning

The top priority of any cold storage facility is to maintain optimum hygiene conditions for food products, making the maintenance and clearing of equipment essential. You should regularly record the temperature and humidity levels and check other components such as containers, trays, and bins, which require time and money.

Promotion and Target Audience

The success of your cold storage business also depends on how you execute marketing, promotional, and advertising efforts. Try to cover a wide range of market segments, including wholesalers, retailers, traders, warehouse companies, and supermarkets. Do not limit yourself only to urban areas - cover rural areas as well.

Arrange Funds

Securing finance is one of the biggest challenges when starting any business. The cold storage business is no exception! Consider applying for a business loan, research and compare the different loan options available in the market and choose the one that best meets the specific needs of your business. Keep your personal savings reserved for emergencies or immediate financial needs.

Mechair offers modern cold room solutions and systems. It supports lemon, banana, and onion cold storage in bulk quantities, as well as the preservation of dairy products, sea food, ice cream, frozen food, meat, medical and other perishable products safely. To explore our offerings and services, please visit us here: https://www.mechair.in/.