DHAKA, Oct 6, 2024 (BSS) - The United States Trade and Development Agency (USTDA) has awarded a feasibility study grant to establish a temperature-controlled logistics network to develop cold storage refrigeration warehouses in Bangladesh to reduce food losses and improve food security.

The study's goal is to lower costs and reduce losses of dairy, meat, and other food products, resulting in improved food security for people across Bangladesh, said a press release disseminated by the US embassy in Dhaka today.

The grant was awarded to Bangladesh-based Bonton Foods Limited, which has chosen Minnesota-based Land O'Lakes Venture37 to carry out the study, it added.

"Facilitating private sector investment is vital to Bangladesh's food security goals. Our partnership with Bonton Foods will help mobilize capital and deploy innovative solutions that address the needs of Bangladesh's people," said USTDA Director Enoh T. Ebong.

He also emphasized the role US technology can play in increasing the availability of fresh food in the country.

Charg, d'Affaires at the US Embassy here Helen LaFave also underlined the significance of temperature-controlled logistics for Bangladesh.

"Cold chain infrastructure can diversify export opportunities and meet the growing demands of Bangladesh's middle class," she added.

She also emphasized that the study could unlock new US investment opportunities in the sector.

Bangladesh currently has 2.7 million metric tons of cold storage capacity spreading across over 300 sites, yet the country's existing cold chain infrastructure falls short of meeting demand, particularly in rural areas.

The lack of mechanical refrigeration contributes to significant food spoilage, especially for animal proteins and produce, which are often sold in open-air wet markets.

The USTDA-backed study aims to address these gaps by creating a third-party logistics network for cold storage facilities.

The initiative aligns with key initiatives of the Biden-Harris Administration, including the "Feed the Future program", aimed at enhancing global food security, said the release.