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Logistics partnership reduces costs for apple farmers

19 Oct 2012 - by Ed Richardson
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A logistics partnership
between a terminal operator
and cold storage facility
is reducing costs for apple
farmers down the Langkloof
Valley.
The construction of a
full-service APM Terminals
facility over the road from
PE Cold Storage in the Coega
Industrial Development Zone
(IDZ) has brought down
inland haulage costs to the
point where Ngqura is now
cheaper overall than Cape
Town.
But the positive benefits for
the farmers are much more
far-reaching, according to
George Efstratiou of PE Cold
Storage.
Apples are marketed
and sold by size, which has
meant that agents often have
to pick from a number of
farms in order to make up a
consignment. Farmers have,
therefore, had to operate their
own cold rooms and stock
management systems.
From 2013, fruit will
be trucked straight after
picking to PE Cold Storage,
which will handle the precooling,
paperwork, storage
and stock picking and stock
management on behalf of the
farmers.
“There is an immediate
saving in the costs of
electricity used to run the cold
stores.Looking at our own
power costs, which have gone
up by over 50% in the past
year, that is a major saving,”
says Efstratiou.
Farmers will be free to
use their cold stores for other
produce, or to hire them out.
Agents will also benefit
by not having to arrange
multiple pick-ups, with PE
Cold Storage providing
the stock picking, packing
and phytosanitary services.
The Coega facility can
accommodate cold
sterilisation.
Efstratiou expects the
facility to handle 20-30 000
pallets of apples in the first
season.

CAPTION
From 2013, fruit will be trucked
straight after picking to PE Cold
Storage.

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