Producers of fruits and vegetables and retailers in Europe are faced with a growing shortage of refrigeration capacities.
After the closure of public catering facilities due to the pandemic, the demand for storing unsold products in refrigerated warehouses or freezers increased sharply.
In the changing economic conditions, it became practically impossible to find commercial refrigeration capacities, so farmers are forced to reduce production or recycle the increased amount of waste.
According to the representative of the international logistics company Lineage Logistics, more than 90% of the refrigeration capacities in Europe are already involved. Shane Brennan, Executive Director of Cold Chain Federation, noted that there were hardly any freezers left in the UK. The European Commission has already lowered forecasts for the export of goods and services by 15% due to the low potential of international trade.
According to experts, the restoration of demand and the normalization of supply chains will help solve the storage problem.
“Deliveries will be canceled until June and, possibly, during the third quarter of 2020. The impossibility of exporting will lead to food congestion in Europe, overloaded refrigeration capacities and a further rise in prices, ”said Matteo Jagatti, supply specialist at the Rabobank Agricultural Research Center.