Limited cold storage capacity threatens Cebu’s agri progress

CEBU, Philippines — Cebu may need as many as 40 to 50 new cold storage facilities to support its farming and fishing industries, reduce post-harvest losses, and help lower consumer prices, according to the Mandaue Chamber of Commerce and Industry (MCCI).

Mark Anthony Ynoc, MCCI president, said food spoilage accounts for about 30 per cent of losses in the province due to limited storage capacity, forcing higher prices for consumers.

According to Ynoc, while cold storage hubs would ideally be located near farms and fishing communities, cost constraints may lead developers to concentrate new facilities in port areas where goods are consolidated.

“If we want to bring down the cost of food, we need to invest in cold chain facilities from the north to the south of Cebu,” Ynoc said, urging foreign and local investors to seize opportunities in the sector.

A single 2,000- to 3,000-square-meter warehouse costs an estimated P80 million to P100 million ($1.4 million–$1.8 million) to build.

Cebu currently has 14 licensed cold storage companies, far short of its needs.

Farmers and fishers still rely heavily on ice plants to preserve harvests and catch, a system that Ynoc described as insufficient to sustain supply chains.

Other business leaders echoed the call.

Benedict Que, trustee of the Cebu Chamber of Commerce and Industry (CCCI) said more cold storage would improve farmers’ incomes, stabilize agricultural supply, and encourage the rise of “agri-entrepreneurs.”

Grace Cenas, general manager of Philippine Inno-Ventures Agriculture Cooperative, added that better storage facilities would give farmers stronger bargaining power, reduce distress sales, and generate jobs in operations and logistics.

The local push aligns with a national initiative to expand cold chain infrastructure.

In June this year, Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. announced plans to build around 99 modular and mega cold storage warehouses across key agricultural regions, backed by P3 billion in funding. The new facilities will use hybrid power systems combining renewable energy with the grid to ensure efficiency in remote areas.

Industry executives say Cebu’s central geographic location and role as a transport hub make it a strategic site for cold storage investment, positioning the province as a potential model for the Philippines’ broader cold chain expansion.