US backs Bangladesh's cold storage development for food security

The US Trade and Development Agency (USTDA) has awarded a feasibility study grant to Bonton Foods Limited, a Bangladesh-based prepared foods and cold chain services company. 

The grant will support the development of a temperature-controlled logistics network of cold storage warehouses in Bangladesh, aimed at reducing food losses and lowering costs for dairy, meat, and other food products, thereby improving food security across the country. 

Minnesota-based Land O'Lakes Venture37 has been selected to conduct the study.

The study's goal is to lower costs and reduce losses of dairy, meat, and other food products, resulting in improved food security for people across Bangladesh, said a press release disseminated by the US embassy in Dhaka today.

"Facilitating private sector investment is vital to Bangladesh's food security goals. Our partnership with Bonton Foods will help mobilise capital and deploy innovative solutions that address the needs of Bangladesh's people," said USTDA Director Enoh T Ebong. 

"We look forward to demonstrating the positive role that U.S. technology can play in unlocking greater access to fresh foods."

Bangladesh currently has 2.7 million metric tons of cold storage capacity across more than 300 sites. However, the existing cold chain infrastructure cannot meet demand, especially in rural areas. As a result, much of the country's animal proteins and produce are handled in wet markets with little to no refrigeration support, leading to food spoilage and losses. 

The USTDA-funded study aims to address these issues by facilitating the construction of an integrated network of third-party logistics cold storage facilities nationwide.

Shamim Ahamed, managing director of Bonton Foods, highlighted the potential for growth in the sector, saying, "The country's large population—20 million people in greater Dhaka alone—a growing upper and middle class, and changing consumer patterns signal a bright future for the cold chain industry. We are keen to leverage our position in the market by expanding third-party logistics services to small and medium-sized agribusinesses as well as international food importers and exporters."

Helen LaFave, Chargé d'Affaires at the US Embassy in Dhaka, emphasised the importance of cold chain infrastructure for Bangladesh's agricultural producers, stating, "The lack of appropriate temperature-controlled logistics in Bangladesh results in post-harvest losses, affects food safety, and limits trade in agricultural and consumer products. This feasibility study will identify opportunities for increased US investment in cold chain, which would create a stable logistics network for refrigerated and frozen US products to meet the growing demands of Bangladesh's middle class."

The initiative aligns with the Biden-Harris administration's priorities, including the Feed the Future initiative, in its efforts to bolster food security.