Patrick Ballard, vice president of protein sales. proteins and cold storage for Americold, shares some insights on developing issues impacting the refrigeration and cold storage sector.

How is the outlook for cold storage availability for meat and poultry products trending for 2024? 

Beef has historically tight supplies as we move into 2024. 2023 closed out with exports falling as domestic supply tightened and imports rising to offset the tightening domestic supply. For the first time since 2020, we saw imports being larger than exports. 2024 should continue to see smaller US production with high beef demand. Cold storage will benefit on the import side of the market given the services and expertise provided by the cold storage industry. Pork demand is expected to be strong in 2024 against an annual slower pace of slaughter. Pork exports are forecasted to be higher than they were in 2023 which will support cold storage services and expertise in getting product to market.  Poultry is managing through HPAI, which impacts the domestic retail, foodservice and export markets together. Broiler exports are forecasted to be down in 2024 while imports are forecasted to be up.

What are some key considerations for meat and poultry processors to get the most bang for their buck in refrigerated services solutions? 

The primary consideration is developing a cold storage strategy that reflects the processors go-to-market strategy and utilizing cold storage close to production or close to customers. Processors should understand their product needs to ultimately end up and be aligned with a provider that can holistically support their cold chain requirements. Considerations should include: the type of pallet being used, whether the cold storage facility is automated or conventional, packaging design and durability, inner lining or no inner lining within cases, will the product be blast frozen, exported, etc.  Having a comprehensive understanding of the product’s end user and the potential dynamics that come into play during the production to end user cold chain supports expense control while the product is in the cold chain. Having a holistic view of the cold chain provider service offerings can also drive expense out of the cold chain while providing best in class service to customers.

What technical innovations are powering efficiency optimization for cold storage services?  

Warehouse Management Systems and Warehouse Execution Systems integrate various processes, including inventory control, order processing and logistics. These systems use real-time data and analytics to optimize storage space, reduce errors, and enhance overall operational efficiency. These platforms offer end-to-end visibility into the cold chain and monitoring of the movement of goods from production to delivery. This transparency helps in identifying potential issues, minimizing delays, and ensuring the integrity of the cold storage process.  Automation and robotics are being increasingly used for tasks such as material handling, order picking, and palletizing. Automated guided vehicles , robotic arms, and conveyor systems help streamline processes, reduce labor costs, and improve accuracy in handling perishable goods. AI-driven predictive analytics tools analyze historical data and real-time information to forecast demand, optimize inventory levels, and improve supply chain efficiency. This enables better decision-making regarding stock rotation, reducing waste and ensuring the availability of products when needed.

What energy efficiency/sustainability priorities are influencing sold storage services decision making? 

Energy efficiency and sustainability have become critical priorities for cold storage services as businesses increasingly recognize the environmental impact of the operations.  Cold storage services are incorporating renewable energy sources, such as solar panels into operations. This helps reduce reliance on traditional energy grids and lowers the carbon footprint of the facilities. Implementing Energy Management Systems allows cold storage providers to monitor and optimize energy usage in real-time. These systems can adjust settings based on demand, prioritize the use of energy-efficient equipment, and provide insights for continuous improvement. Cold storage providers are increasingly seeking green certifications, such as LEED - Leadership in Energy and Environmental Design. Compliance with environmental regulations and standards is a priority, ensuring that operations align with recognized sustainability benchmarks. Cold storage services are adopting strategies to minimize their carbon footprint, including optimizing transportation routes, using eco-friendly packaging materials, and sourcing products locally. Carbon offset programs may also be implemented to neutralize the remaining emissions.

What are some upstream steps processors can make to ensure their products are optimized for cold storage? 

Optimizing products for cold storage involves careful consideration of various upstream steps in the processing and handling of goods. Proper packaging material with good insulating and eco-friendly properties, implementation of a seamless cold chain from production to storage, real time temperature monitoring during handling/processing of products, and regular inspections help identify any defects, leaks, or issues that could compromise product quality during cold storage.