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Industry News

Cold comfort:service providers and ready and able to handle temperature-controlles distribution

Cold storage and temperature-controlled distribution have significantly advanced the food supply chain since being introduced just over 100 years ago. Before then, food preservation was relatively limited to salting and drying; otherwise, you consumed food after it was harvested and before it went bad. Citrus fruits in winter? Not likely!

What started with blocks of ice being cut from lakes in northern states during winter months and preserved using hay, has evolved into the advanced cooling and transportation techniques we all now take for granted.

The demand for cold storage and distribution can arguably be linked to the rise of the middle class, and the demand for fresher foods. And as demand increases, so does temperature-controlled storage and distribution. Capacity is readily being added to major U.S. and emerging global markets on a near constant basis.

According to the U.S. Department of Agriculture’s National Agricultural Statistics, there was 4.17 billion cubic feet of gross refrigerated storage capacity in the U.S. on Oct. 1, 2015. This represents a 3 percent increase in refrigerated warehouse capacity in the U.S. since 2013.

Add to that the services that cold storage and distribution companies are incorporating to attract more business, and it soon becomes obvious that the industry is ratcheting-up its viability as a differentiator for its customers.

In recent years, there’s been a growing interest in the humane and wholesome raising of animals, growing of fruits, vegetables and the desire to reduce superfluous activities between the farm and the fork. This consumer demand has led to an increase in the number of companies adhering to more socially acceptable standards.

You may have noticed the number of aisles in your local supermarket being dedicated to fruits, vegetables, fish and meat. Such increases are the direct result of this increase in consumer demand.

Once these products hit the markets, the sheer volumes of companies vying for retail space on shelves are incredible. There’s also the need to appeal to consumers by pricing products appropriately. So, those wholesome food producers are always looking for efficient and effective processes to balance costs for the production and sale of their product versus the prices consumers receive.

In addition to the farm-to-fork movement, consumers are looking for convenience. Individual packaging, and fresh, nutritious ingredients, available quickly, and even delivered during a predetermined window: Welcome to e-commerce.

In today’s society, anything we want or need is just a click away, including food! From ordering groceries online to ready-prepared meals, and fast-food delivery, consumer convenience is at the helm of such growing market trends, saving time in what some believe is a better use of their time. In fact, according to the Food Marketing Institute and Nielsen, grocery is the next big retail sector to be affected by e-commerce. Their recent study suggests by 2025, 20 percent of all grocery spending could be online. That’s $100 billion in annual online consumer sales.

There is a lot of opportunity for temperature-controlled service providers to appeal to food producers and food retailers with additional value-added services to cater toward the new norm of consumer demand. And temperature-controlled service providers are stepping-up! Tailored solutions can enable food producers to continue to produce goods in larger, economic volumes, and then leave repacking, relabeling, kitting and even order fulfillment to the service provider.


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please call 86-0755-82204358

Yourkey Supply Chain Co., Ltd.

Room911A,BaofengBuilding,No.2006,Dongmen

South Road.Luohu,Disrtict,Shenzhen,China

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