Cold chain sector calls for more reliable power

At first ever industry conference, executives ask for more govt support.

KARACHI:

Executives from Pakistan’s cold chain industry claim that they are rapidly building up the capacity to serve firms in agriculture and industry, but are hampered in their capacity to improve the economy’s efficiency by an unreliable electricity supply.

During the first ever cold supply chain conference in the country, held on Thursday in Karachi, executives from food, pharmaceutical, logistics, and other firms met to review progress in the industry and think of ways to mitigate the challenges facing the sector. The conference was organised by the Supply Chain Association of Pakistan (SCAP).

“Electricity shortage is the single biggest hurdle in the growth of the cold chains in Pakistan,” said Shamsuddin Sheikh, vice president for supply chains at Engro Foods, one of the largest foods companies in the country. “We have a cold chain capable of catering to the needs of Pakistan’s food industry, but the energy crisis is the main hurdle in managing the cold chain logistics that also causes huge production losses.”

A cold chain essentially ensures that and item that needs to be refrigerated is kept at its required temperature throughout its transportation process. Many items, particularly food and pharmaceuticals, need to preserved within precise temperature ranges or else they become spoilt.

Pakistan loses an estimated 40% of its production of fruits, vegetables and dairy products due to the lack of an adequate cold supply chain, according to figures released by the Punjab Board of Investment and Trade.

Yet wastage is not the only issue. Pakistani food products are of a poorer quality compared to their international counterparts and thus command lower prices because of the inadequate preservation.

“Pakistan gets, on average, only 41% of the international price on its food exports owing to weak cold chains in the country,” said Moin Ahmed Malik, the Pakistan head of Swiss logistics giant Agility.

The pharmaceutical industry is perhaps even more sensitive than the food business. Several drugs spoil within a few hours of leaving the factory owing to the heat, particularly in the summer, according to pharmaceutical industry executives at the conference. The loss of those drugs can be a huge strain on the financial viability of many pharmaceutical companies.

The SCAP was set up two years ago by companies involved either as clients or providers of cold chain services. The group is working to enhance the capacity of industry professionals, said SCAP president Qaysar Alam.

Published in The Express Tribune, July 22^nd,  2011.