Logistics partnership reduces costs for apple farmers

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.