The US Trade and Development Agency (USTDA) has announced that it has awarded a grant for a feasibility study to Bonton Foods Limited, a Bangladeshi company specialising in prepared foods and cold chain services.

This grant aims to support the establishment of a temperature-controlled logistics network comprising cold storage refrigeration warehouses across Bangladesh, said a press release issued by the US embassy in Dhaka on Saturday.

It said that the study aimed to lower costs and reduce losses of dairy, meat, and other food products, resulting in improved food security for people across the country.

Bonton Foods selected Minnesota-based Land O’Lakes Venture37 to conduct the study.

Director of USTDA Enoh T Ebong emphasised the importance of facilitating private sector investment for achieving Bangladesh’s food security objectives saying that the partnership with Bonton Foods would assist in mobilising capital and implementing innovative solutions to meet the needs of the Bangladeshi population.

‘We look forward to demonstrating the positive role that US technology can play in unlocking greater access to fresh foods,’ she said.

While Bangladesh has 2.7 million metric tons of cold storage refrigeration capacity across over 300 sites, the country’s current cold chain industry cannot meet demand, particularly in rural areas, the release read.

As a result, animal proteins and produce are handled primarily via wet markets with little to no mechanical refrigeration support, which can lead to food spoilage and loss,it said.

According to the press release, the USTDA-funded study would address these challenges by facilitating the construction of an integrated network of third-party logistics cold storage facilities across Bangladesh.

The country’s large population—20 million in greater Dhaka alone—along with a growing upper and middle class and evolving consumer patterns, indicates a promising future for the cold chain industry, Bonton Foods managing director Shamim Ahamed said.

‘We are keen to leverage our position in the market by expanding third-party logistics services to small and medium-sized agribusinesses as well as international food importers and exporters,’ he said.

The US embassy Chargé d’Affaires, Helen LaFave, said that the absence of adequate temperature-controlled logistics in Bangladesh resulted in post-harvest losses, compromised food safety, and restricted trade in agricultural and consumer products.

She noted that developing cold chain infrastructure would have allowed Bangladeshi agricultural producers to diversify their export opportunities by ensuring the safety and quality of their products.

LaFave said that the feasibility study aimed to identify opportunities for increased the US investment in cold chain logistics, which would create a stable network for refrigerated and frozen US products that met the consumer demands of the rapidly growing Bangladeshi middle class.

USTDA’s study advances the goals of Biden-Harris Administration priorities such as the Feed the Future initiative, the release added.