Cold storage for seasonal produce is crucial for preserving freshness and extending the shelf life of fruits and vegetables, especially those harvested during specific seasons when they are abundant. In Michigan, cold storage facilities play a vital role in the agriculture supply chain and are a key player in the industrial real estate sector.
These facilities typically include refrigerated warehouses or storage units equipped with temperature and humidity control systems. They are designed to maintain optimal conditions for storing produce including fruits, vegetables, and flowers.
Freezer space continues to be a challenge for processors, even with additional space being built last year and more under development. Some barriers include the current cost to build a new freezer ($300/square foot), some companies not liking to work with commodities because of the long-term contract, and last, some freezers requiring a minimum storage amount. For example, you have to guarantee the space for a specified amount of time whether you use it or not.
Additionally, DTE and Consumers Energy were approved for fee increases in 2024; electricity is the highest cost associated with freezers which means storage rates will go up. Michigan previously had many freezers; however, they are outdated/defunct and would cost a tremendous amount of money to update.
Thoughts to consider
- What resources are available to expand cold and/or freezer storage?
- Should commodity groups form co-ops?
- How much capacity do we need regionally or statewide?
Policy references
MFB Policy #21 Fruits and Vegetables
Additional resources
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