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Cold storage to grow 50% as fishery firms push for export markets

The number of cold storage installations for the fishery sector is set to rise rapidly this year on increasing online orders for cool delivery and improving seafood production, but industry players need to anticipate rising installation costs.

Divya Karyza (The Jakarta Post)
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Jakarta
Mon, June 27, 2022

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Cold storage to grow 50% as fishery firms push for export markets Fish is auctioned at the Pasie Nan Tigo fish market in Padang, West Sumatra, in this undated photograph. (Antara/Iggoy el Fitra)

T

he number of cold storage installations for the fishery sector is set to rise rapidly this year on increasing online orders for cool delivery and improving seafood production, but industry players need to anticipate rising installation costs.

Cold Storage Association (ARPI) chairman Hasanuddin Yasni expects 32,000 tons of cold storage to be installed this year, up 50 percent from last year’s capacity increase, as the industry expands to accommodate growing production in the marine products and fishery sector.

“New players that provide mini-middle cold storage have begun to emerge. This group is expected to provide 200 tons to 600 tons of cold storage,” Hasanuddin told The Jakarta Post on Thursday, adding that 60 percent of cold storage used in the fishery sector was for export purposes while the remaining 40 percent was used as a storage system to supply the domestic seafood processing industry.

The tonnage of cold storage capacity is calculated by multiplying the volume of a facility with the facility’s utilization factor and the weight of products stored there.

Despite the expected strong growth, Hasanuddin warned stakeholders in the cold chain industry to anticipate an average 10 percent increase in storage installation fees as current developments had sent up container shipping costs.

“The ongoing [Russia-Ukraine] conflict affects the supply chain for imported goods in cold storage installations,” he said.

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Indonesia posted a 21.63 percent year-on-year (yoy) increase in fish product exports in the January-March period as shipments rose to US$1.53 billion, according to Statistics Indonesia (BPS) data.

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