Perishables crash in price at harvest glut. Does paying cold storage rent to hold and sell later pay off?
Is cold storage worth the rent for my fruit and vegetables?
TTek Chand6mo ago · 181 views
4 Answers
🌾Farmer.in Krishi TeamExpert ✓6mo ago
Cold storage can pay off for perishables when off season prices rise well above harvest glut prices and the crop stores well, but you must subtract rent, handling and quality loss. It slows ripening and decay, letting you sell apples, potatoes and similar crops weeks or months later at better rates and reducing distress selling. It works best for crops with good storage life and a clear seasonal price swing. Only store sound, graded, properly pre cooled produce; poor quality going in will not improve. Compare expected later price minus storage and shrinkage cost against selling now. For crops that do not store well or where prices stay flat, cold storage may not be worth it.
RRoshan Thakur5mo ago
I store my apples in cold storage and sell when the market thins out. The off season price more than covers the rent most years. Only put good graded fruit in though.
PPrem Negi5mo ago
For potatoes cold storage saved me from selling at the bottom. But one year prices stayed flat and the rent ate my margin. Check the likely off season price first.
HHem Raj Sharma5mo ago
Rent is usually charged per bag or per quintal for the season, but the rate varies by location and year so confirm with the cold store before you load. Add the loading, unloading and transport both ways into your sums, those small costs add up and people forget them.