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USTDA Boosts Bangladesh's Cold Chain with Bonton Foods Grant

Rtv News

  06 Oct 2024, 19:20
Photo: Collected

In a major boost to Bangladesh’s food security and logistics infrastructure, the U.S. Trade and Development Agency (USTDA) has granted a feasibility study to Bonton Foods Limited.

The study, conducted by U.S.-based Land O’Lakes Venture37, aims to revolutionize Bangladesh’s cold chain industry by building a network of temperature-controlled storage facilities.

With food spoilage and post-harvest losses plaguing the country, this initiative is set to improve food safety, cut costs, and open new doors for agricultural trade.

“Facilitating private sector investment is vital to Bangladesh’s food security goals. Our partnership with Bonton Foods will help mobilize capital and deploy innovative solutions that address the needs of Bangladesh’s people,” said Enoh T. Ebong, USTDA’s Director.

“We look forward to demonstrating the positive role that U.S. technology can play in unlocking greater access to fresh foods.”

While Bangladesh has 2.7 million metric tons of cold storage refrigeration capacity across over 300 sites, the country’s current cold chain industry cannot meet demand, particularly in rural areas.

As a result, animal proteins and produce are handled primarily via wet markets with little to no mechanical refrigeration support, which can lead to food spoilage and loss.

The USTDA-funded study will address these challenges by facilitating the construction of an integrated network of third-party logistics cold storage facilities across Bangladesh.

Shamim Ahamed, Managing Director of Bonton Foods, stated, "With a large population of 20 million in greater Dhaka, a rising middle and upper class, and evolving consumer preferences, the future of the cold chain industry looks promising.

We’re eager to strengthen our market position by expanding third-party logistics services, catering to both small and medium-sized agribusinesses, as well as international food importers and exporters."

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