Ethiopia invests US$11M in agricultural cold chain to cut post-harvest losses
The new facility in Addis Ababa aims to reduce food losses and improve storage for fruits, vegetables, and animal products.
ETHIOPIA – Ethiopia has opened a new cold storage facility in Addis Ababa as part of efforts to reduce post-harvest losses and strengthen food supply systems.
The project cost 1.7 billion birr (US$10.9 million) and was developed by the Ethiopian Trading Business Corporation (ETBC), a state-owned company that supplies agricultural and industrial products to the local market.
The facility sits on a 1.14-hectare site in Akaki Kality and includes a cold chain complex and a ten-storey multi-purpose building that supports commercial and logistics activities.
The Ministry of Trade and Regional Integration says the warehouse can store more than 2,000 tonnes of fruits and vegetables and about 1,000 tonnes of animal products.
ETBC said the facility will improve product quality and market stability. “This infrastructure will play a major role in reducing post-harvest losses and deterioration, stabilizing markets, and preserving the natural quality of fruits, vegetables and animal products, so that they can be supplied to local consumers and export markets in better conditions,” the corporation said.
High cost of post-harvest losses
Post-harvest losses remain a major challenge in Ethiopia. A Ministry of Agriculture report published in 2024 showed that losses affected 38 percent of annual fruit and vegetable production between 2017 and 2021.
The report estimated losses of 21.35 billion birr (US$137 million) per year over that period, adding pressure on food security.
The report also highlighted the impact on smallholder farmers. “Smallholder farmers, due to their limited access to storage technologies, are often forced to sell their agricultural products immediately to local traders at very low prices,” the report stated.
“These farmers then have to buy back food later in the season at significantly higher prices, often with insufficient funds to ensure their household food security.”
Wider push to improve cold chain systems
The new facility comes as industry actors seek stronger cooperation in cold chain systems. The Ethiopian Horticulture Producer Exporters Association recently hosted a cold chain training for the floriculture sector, bringing together flower farms, logistics experts, and Ethiopian Airlines representatives.
EHPEA said the training focused on practical ways to improve export quality and efficiency. “We want to support the floriculture sector with knowledge and practical tools that improve performance and market access,” an EHPEA representative said.
Participants discussed logistics, cool chain systems, and coordination across the value chain. Many described cooperation between producers and service providers as key to sustaining export growth and improving Ethiopia’s position in regional and global markets.
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