The U.S. government and the Cold Chain Association of the Philippines (CCAP) signed a memorandum of understanding (MOU) to enhance the cold chain systems in the Philippines on June 7, 2019.

The partnership between the U.S. Agency for International Development (USAID) and CCAP will work in Bagangas, Cagayan de Oro, Iloilo, and Zamboanga to improve production and post-production practices and strengthen existing cold chain systems and operations, as well as promote private investments. These efforts will result in improved product quality, better food safety, and increased trade opportunities.

The four cities are agricultural and distribution hubs in their respective regions, facilitating the movement of food and agricultural products, consumer goods, and pharmaceuticals through sea ports connected to the Central Nautical Highway under the Roll-On Roll-Off Transport System.

USAID Acting Mission Director Patrick Wesner and CCAP President Anthony Dizon signed the MOU at CCAP’s 17th Annual General Membership and Training Conference in Iloilo City, which was held from June 5 to 7.

The conference brought together more than 200 CCAP members and key players from industry groups to discuss the latest developments in the cold chain industry and gain insights into new technologies, materials, and equipment for improving operating efficiencies, productivity, and food product quality.

“The U.S. government is working closely with Philippine government and private sector partners to create a favorable business environment that facilitates open and fair trade and where infrastructure and businesses thrive,” Wesner said. “By increasing trade opportunities, the Philippines can create new economic opportunities.”

A cold chain is a temperature-controlled supply chain for processing, storage, and distribution of perishable products such as fresh vegetables, meat, seafood, and frozen goods. An unbroken cold chain preserves and extends perishable products’ shelf life.

Globally, the cold chain market is estimated to exceed $440 billion by 2025. Cold chain facilities in the Philippines are concentrated in Metro Manila, Cebu, and Davao. This MOU will help develop the cold chain capacity in additional cities.