Introduction of a new business model for potato storage
Storage of perishable agricultural products in Bangladesh is a separate business entity, often not integrated with production, trade or processing activities. Currently, supply chain partners in the potato sector wishing to store potatoes rent the facilities of the storage owners. The rent of the storage facilities is based on the duration of the storage period and not on performance. The storage owners control the conditions during storage. Climate control, ventilation, stacking of the produce, etc. is done by the storage owner, whilst the risk of losses lies with the owner of the potatoes (often intermediate traders and potato growers). The owners and operators of the storage facilities therefore only have a limited and indirect interest in improving the storage facilities.
What do we do?
New potato storage business models are needed where the owners of the potatoes have direct control over the storage conditions. This enables them to add value to the produce and extend the marketing season of the potatoes. The economic and financial viability of the new models needs to be assessed.
The following activities are therefore implemented during the project period:
- A feasibility study is performed on new potato storage business models where:
– A potato trader sells potatoes from its own storage on the domestic and export market;
– A potato trader sells potatoes from its own storage on the domestic markets.
In these business models, the owner of the produce also owns the potato storage and has therefore direct control over the storage conditions.
- The operational and economic performance of the new business models are monitored and evaluated during the project period.
- The results of the economic and operational performance are disseminated to relevant stakeholders. This will stimulate a transition from the traditional business model to the newly effectively demonstrated business models.