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INFRASTRUCTURE NEEDS ASSESSMENT FOR DISTRIBUTION OF FROZEN PROCESSED POTATO PRODUCTS IN SOUTHEAST ASIAN COUNTRIES

Authors
Disciplines
  • Economics
  • Political Science

Abstract

Journal of Food Distribution Research Infrastructure Needs Assessment for Distribution of Frozen Processed Potato Products in Southeast Asian Countries Victoria Salin, Rodolfo Nayga, Catherine Viator, Wuyi Fang, and Wipon Aiew Texas A&M University Department of Agricultural Economics The purpose of this project is to assess the commercial feasibility of investments in cold chain infrastructure improvement needed to distribute frozen foods in and beyond major cities in Thailand and the Philippines. Quick-serve restaurants and US shippers have successfully penetrated the major urban centers of Manila and Bangkok. Growth op- portunities are expected in the secondary cities. The objectives of this project are to: (1) develop pilot projects illustrating business opportunities with commercial potential in the infrastructure needed for transportation and handling of frozen foods to secondary cities in the Philippines and Thailand; and (2) draw conclusions about feasibility of projects, using risk analysis based on economic condi- tions and institutional constraints. A research team visited the capital cities and major secondary cities in the Philippines and Thai- land during May and June 2000. While there, ap- proximately 80 companies were interviewed in- cluding cold storage businesses, transportation service companies (shipping lines and trucking and railway cargo service companies), port authorities, frozen food companies, quick service restaurants, banks, and government officials. Current Situation in Cold Chain Infrastructure The main issue in distributing frozen proc- essed potato products in the Philippines is insuffi- cient quality cold storage, especially in secondary cities such as Bacolod and Cebu. The expensive inter island shipping cost from Manila to secondary cities is another bottleneck. Freight rates of inter island shipping are higher than international ship- ping charges. For example, the cost from Hong Kong or Japan to Manila is about $1500 per 40- foot container wh

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