A cold chain encompasses everything from cooling vegetables as
they are harvested, to transporting goods in refrigerated trucks, to storing
goods in cold warehouses or keeping them in freezers or refrigerators at the
store. A break in the chain can result in sick consumers and economic loss from
spoiled foods. Vaccines that are accidentally frozen or exposed to heat can
lose their potency and in some cases even be harmful to patients.
Consulting firm A.T. Kearney estimates that more than $100
billion would have to be invested for China to have an efficient and safe
food-distribution system in place — costs that would be borne by companies and
in many cases be passed on to consumers. But the payoff is lucrative:
Food-industry executives estimate that
produce and meat between the source and the consumer. A.T. Kearney estimates the economic losses from the lack of proper cold chain in China is about $15 billion a year.
Today
storage, according to A.T. Kearney. To serve
growing middle class with effective safety levels, China would need 365,000
refrigerated trucks and five billion cubic feet of cold storage by 2017, when
the Chinese middle class is expected to spend around $650 billion on food. That
market is about $150 billion today, the firm estimates.
Source: Lee, Jane Lanhee. 2007. China Hurdle: Lack of Refrigeration. Wall Street Journal, August 30