Cold storage plays a crucial role in the agriculture industry as it allows farmers and food distributors to preserve and transport perishable goods for longer periods, reducing food waste and ensuring that consumers have access to fresh and healthy products year-round.

The process of storing perishable products at low temperatures has been around for a long time but has really expanded exponentially in the last 100 years with refrigerated capacity nationally mushrooming from 585 million cubic feet in 1923 to 3.73 billion cubic feet in 1921. 

“Major factors contributing to the growth of the warehousing industry since the 1930s have included technological advances and improvements in equipment and transportation facilities, along with better knowledge of product handling procedures and the storage environment,” says the USDA. “Wider consumer acceptance of the ever-growing variety of food marketed in a frozen state fostered tremendous demand for refrigerated space. The warehousing industry began to convert all or major portions of their cooler rooms into freezer rooms and to build new facilities in areas closer to points of production.”

Freezer space was just 115 million cubic feet in 1923 and only doubled to 250 million cubic feet by the late 1940s, but it climbed above 1 billion cubic feet in 1979 and doubled to 2 billion cubic feet by 1997.

Why Cold Storage is Important in the Agriculture Industry

Cold storage is important in the agriculture industry for several reasons:

• Extends Shelf Life: Cold storage allows farmers to extend the shelf life of their products. By storing perishable goods at low temperatures, they can slow down the natural process of decay and prevent spoilage and food waste. This is particularly important for products like fruits and vegetables, which can lose their nutritional value and flavor quickly if not stored properly.
  
  
• Transport Perishables Over Long Distances: Cold storage helps distributors transport perishable goods over long distances. By keeping products at low temperatures, they can prevent the growth of harmful bacteria and maintain the quality of the product during transportation. This allows farmers to expand their market reach, sell products beyond their local area, and increase profits.
  
  
• Enhanced Food Safety: Cold storage reduces the risk of spoilage and contamination of agricultural products by inhibiting the growth of bacteria, fungi, and other harmful organisms.
  
  
• Important to Consumers: By preserving the freshness and quality of products, cold storage can help consumers enjoy healthy and tasty food year-round, regardless of the season. This is particularly important for products like berries, which have a short shelf life and can be difficult to transport without proper storage.
  
  
• Market Flexibility: Cold storage enables farmers to sell their products when the demand is high, rather than being limited by the harvest season. This provides flexibility in the marketplace and helps to ensure a consistent supply of products throughout the year.
  
  
• Cost Savings: By using cold storage, farmers can avoid the cost of transporting their products to market immediately after harvest. Instead, they can wait until market conditions are more favorable, potentially saving money on transportation and storage costs.
  
  
• Export Opportunities: Cold storage is essential for exporting agricultural products to distant markets. Many countries require products to be shipped in temperature-controlled environments to maintain freshness and safety, and cold storage allows for this type of transportation. This can increase export opportunities for farmers, potentially increasing their revenue and expanding their customer base.

The Role of Cold Storage in the Ag Industry Has Grown in Recent Years

The role of cold storage has grown in recent years, particularly with the rise of e-commerce and online grocery shopping.

According to a report by the Global Cold Chain Alliance, the global cold storage market is expected to grow by 12.5 percent from 2020 to 2025. This growth is driven by several factors, including:

• Increased demand for fresh and healthy food
  
  
• Growing awareness of the benefits of reducing food waste
  
  
• Expansion of e-commerce and online grocery shopping
  
  
• Increasing demand for frozen food products

The COVID-19 pandemic accelerated this trend to more cold storage usage by the food industry.

“Demand for cold storage has been on the rise in recent years due to an increase in online grocery sales. The coronavirus outbreak prompted nationwide lockdowns, further encouraging online shopping and increasing the demand for climate-controlled warehouses,” wrote Evelyn Jozsa for Commercial Search.

CBRE found that investors were hungry for temperature-controlled industrial assets with the following highlights:

• An expected rise in e-commerce share of total U.S. grocery sales to 21.5 percent by 2025 from 13 percent in 2021 will drive demand for cold storage, particularly within the grocery distribution segment.
  
  
• As of Q2 2022, there was 3.3 million sq. ft. of speculative cold storage development underway in the U.S., up from only 300,000 sq. ft. in 2019.
  
  
• Investor interest in cold storage increased during the pandemic. Nearly 40 percent of respondents to CBRE's 2022 U.S. Investors Intention Survey is pursuing cold storage assets this year, up from 22 percent in 2021 and 7 percent in 2019.

“Whatever the method of new development, demand for cold-storage space will remain high. Population shifts, changed eating habits and increased adoption of online grocery ordering will ensure this for the foreseeable future,” concluded the CBRE report.

What Products in the Agriculture Industry Require Cold Storage?

Many products in the agriculture industry require cold storage, including the following main categories:

• Fruits and vegetables
  
  
• Meat and poultry
  
  
• Seafood
  
  
• Dairy products
  
  
• Eggs
  
  
• Frozen foods
  
  
• Nuts

The USDA monthly Cold Storage Report gives a total view of U.S. agriculture products in cold storage and the consumer food trends with the following products hitting record high cold storage amounts since the pandemic started in 2020:

• Natural cheese: other and total natural cheese
  
  
• Chicken: Breasts and breast meat; drumsticks; thighs and thigh quarters; thigh meat; paws and feet; total chicken
  
  
• Blackberries: individually quick frozen and total blackberries
  
  
• Cherries: tart (juice stock)
  
  
• Carrots: diced
  
  
• Beef: boneless and total beef
  
  
• Pork: loins boneless and total loins
  
  

The Different Types of Cold Storage Solutions Available in the Agriculture Industry

There are several different types of cold storage solutions available in the agriculture industry, including:

• Refrigerated trucks and containers: Refrigerated trucks and containers are used to transport products over long distances. They are equipped with cooling systems that maintain a consistent temperature throughout the journey. These are the most basic and inexpensive cold storage options for storing small quantities of perishable products.
  
  
• Cold storage warehouses: Cold storage warehouses are large facilities that are designed for long-term storage of perishable goods. They are equipped with multiple cooling units that maintain a constant temperature and humidity level. These warehouses are broken down into two main categories:

o   Private Cold Storage: These facilities are owned by the same enterprise that uses or produces the food products stored in the facility.

o   Public Cold Storage: Cold storage warehouses that are owned and operated by third-party logistics companies. They receive, store, and ship goods on behalf of clients.

• Blast freezers: Blast freezers are used to rapidly freeze products, allowing them to be stored for longer periods. They are often used for seafood and meat products, which can deteriorate quickly if not frozen immediately. These are sometimes also called “blast chillers”, “shock freezers” or “flash freezers”.
  
  
• Walk-in coolers and freezers: Walk-in coolers and freezers are smaller storage units that are used for short-term storage of perishable goods. They are commonly used in grocery stores and restaurants to keep products fresh and at the proper temperature.
  
  
• Refrigerated display cases: Refrigerated display cases are used in grocery stores to showcase perishable products like meat, poultry, and seafood. They are designed to maintain a consistent temperature and prevent spoilage.