Horticulture producers have taken to constructing their own
warehouses to avoid incurring losses due to the current shortage of
storage facilities in the country, a new report shows.
The
survey report by Tilisi Developments Ltd released this week shows that
the sector reported zero product impact from warehouse shortage,
indicating that players in that sector have set up space to cater for
their storage needs.
Horticulture products are
sensitive to poor storage, with products such as flowers and vegetables
requiring cold storage facilities immediately after harvest in order to
minimise losses.
“It is perhaps the sheer scale of such
immediate losses that has seen horticultural producers develop their
own warehousing options and space in order to function,” said Tilisi in
the report.
“Of all the sectors surveyed, only the
horticulture sector planned 100 per cent of its storage based on current
needs.” The shortage of space is sharpest in the pharmaceutical,
manufacturing, logistics and fast-moving consumer goods (FMCG) sectors.
The survey covered 56 companies spanning from manufacturing to pharmaceuticals, horticultural, logistics and retailers.
In
the pharmaceutical sector, the report showed that 20 per cent of
respondents lost sales, 40 per cent reported delays in meeting demand,
and a further 40 per cent said shortage and prolonged search had delayed
their expansion.
Pharmaceutical products normally
require high-grade warehousing that is temperature controlled, often
with cold storage facilities.
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