Reducing Post-Harvest Losses in Nigeria through Cold Chain Investment
Every year, almost one-third of the world's food supply is lost due to postharvest loss (FAO 2011). This loss translates into 1.3 billion tons worth about $1 trillion. Even with a recent increase in global food production, a large chunk is still wasted before it reaches the final consumers.
Major post-harvest losses of about 40% occur in developing nations like Nigeria during storage and transport. To tackle this situation, options such as the cold chain infrastructure (CCI) provide a practical way to reduce these losses while providing a solid return on investment to the agrifood industry.
Overview and Impact of Post-Harvest Losses in Nigeria
Post-harvest losses (PHL) refer to food lost at any stage of the supply chain, from when crops are harvested to when they are consumed. PHL occurs in the handling, storage, processing, distribution, and consumption stages. However, most food losses occur during handling and storage.
Role of Cold Chain Infrastructure (CCI) in Mitigating Post-Harvest Losses
Cold Chain Infrastructure is a temperature-controlled system that preserves and extends the shelf life of perishable foods. It ensures proper storage, transport, and handling at specific temperatures from production to the consumer level.
On the global front, studies suggest that improving global access to refrigeration could prevent spoilage of up to 475 million tonnes of fresh foods. Theoretically, this amount could feed 950 million people a year.
Cooling perishables like fresh fruits and vegetables will considerably slow down the processes that cause them to decay, thereby extending their shelf life. For farmers, cold storage can help reduce post-harvest loss by 83% and help increase their income by 50%.
Analysis of the Cold Storage Value Chain: What are the Opportunities?
For private businesses, the cold chain offers a valuable avenue for investment across various sectors of the fresh produce and perishable goods industries. Avenues for Investment include:
A. Fresh Fruits and Vegetables (FFV): In 2020, Nigeria produced 16.9 million tonnes of fruits and 24.3 million tonnes of vegetables. However, 30-40% of these are wasted due to a lack of cold chain infrastructure.
Key areas for intervention are:
- Reefer Vehicles: Investing in refrigerated transport to safely move fresh produce from farms to markets without spoilage.
- Cold Storage Facilities: Creating local cold storage centres to extend the shelf life of fruits, fish, and vegetables before they reach consumers.
- Packing Facilities: Among the various solutions proposed to reduce PHL, improved packaging emerges as a promising and cost-effective approach to mitigate these losses. The benefits of effective packaging extend beyond mere protection during transport and storage. For profit gains, it can even serve as marketing functions that increase vendor revenue.
B. Fish: The fishing industry in Nigeria is in dire need of cold storage solutions due to the high perishability of fish. Smoking remains the main preservation method which limits the market potential of locally produced fish. The incentives here include:
- Cold storage solutions will help preserve fresh fish, making it available for sale over longer periods and allowing access to new markets.
- Refrigerated transportation can maintain the quality of fish during transit. This reduces losses and improves market value.
C. Dairy and Meat: Most livestock product in Nigeria is still transported in open vehicles, exposing it to contamination and spoilage. The following are ways to address the issue through CCI:
- Refrigerated trucks would ensure milk and meat are transported safely from farms or abattoirs to companies or meat shops, thus protecting its quality and significantly reducing losses.
- Cold storage in slaughterhouses and distribution points can help maintain the integrity of meat products before they reach the consumer. This increases profitability for businesses involved in meat distribution.
Recommendations for Stakeholders
A broader strategy for effective cold chain investment requires active government and private sector collaboration. Each sector has unique responsibilities and can significantly contribute to reducing post-harvest losses.
For the Government:
- Partner with the private sector to align cold chain development plans with existing infrastructure and agriculture goals.
- Implement and monitor strict food safety and sustainability standards to build consumer trust.
- Invest in roads, railways, and reliable energy to support cold chain operations.
- Provide financial incentives to encourage private sector participation.
For Private Businesses:
- Invest in reducing produce loss through better transportation and packaging solutions like plastic crates or ziplock bags.
- For every loss averted in production, there is a corresponding increase in earnings.
- Collaborate with value chain players to share knowledge and align goals.
- Conduct feasibility studies, preventive maintenance, and ongoing employee training.
This article is an excerpt from Vestance Research on Post Harvest Loss and Cold Chain Development in Nigeria
