Agriculture and food
Cold chain
A temperature-controlled supply chain for food, medicines and other perishables.
Facts checked against sources onWhat does Cold chain mean?
A cold chain keeps perishable goods, such as fruit, vegetables, meat, dairy, seafood and vaccines, at the right temperature from origin to consumer, through pre-cooling, cold storage, refrigerated transport and chilled shelves. A break at any step can spoil the product. Example: a mango exporter spends 0.30 a kg on the cold chain, cutting losses from 30 percent to 10 percent. On 1,000 kg worth 2 a kg, it now sells 900 kg instead of 700, earning 400 more for 300 of extra cost. Cold chains need reliable power and costly equipment, so they are thin in many emerging markets, which is a cause of post-harvest loss.
Where does it come up in case interview prep?
- Using it in a case: is the advantage real?Lesson in Why some businesses win: competitive advantage and the economics of strategy
- How agriculture and food production work: from seed to plateLesson in Agriculture and food production
- Farm economics and the food supply chain: yields, inputs and the cold chainLesson in Agriculture and food production
Related terms
- Post-harvest lossFood lost between harvest and the shop, through poor storage, handling and transport.
- Last mileThe final step of delivery, from a local hub to the customer's door.
- Landed costThe full cost of getting a product to your door, not just its purchase price.
- Yield gapThe difference between what farms actually harvest and what they could harvest with better practices.
- Feed conversion ratio (FCR)Kilograms of feed needed to produce one kilogram of animal weight or output.
- Minimum support price (MSP, India)The price at which the Indian government offers to buy certain crops from farmers.
Learn it in context
See Cold chain at work in a lesson from Why some businesses win: competitive advantage and the economics of strategy, with checks as you go.
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