Abstract
The use of a cold storage plant for reducing perishable food losses is insufficient in developing and underdeveloped countries because of required infrastructure and investments. For this reason, many producers continue to store foods with traditional methods, which can lead to considerable food loss. At this point, the relationship between the financial loss due to perishable foods and the costs of cold storage plant (construction, refrigeration equipment, operating) should be evaluated. In this study, the profitability of both the modern cold storage plant and the traditional potato warehouse in Turkey were compared with the data collected from a potato producer and an experienced refrigeration company. The subject is handled with the Monte Carlo simulation method. The results show that a modern cold storage plant provides a return on investment in a short time. Probability of profitability for a cold storage plant is 51.0%, 74.8%, 89.7% and 96.6% for the 1st, 2nd, 3rd and 4th years, respectively.
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Abbreviations
- NPVn :
-
NPV value for the ‘n’th year
- ICUW:
-
Investment cost of an underground warehouse
- ICRP:
-
Investment cost of a refrigeration plant
- AIn :
-
Annual incomes for the ‘n’th year
- AO n :
-
Annual outcomes for the ‘n’th year
- i r :
-
Real interest rate
- n c :
-
Duration of construction
- n :
-
The calculated year
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Yilmaz, D., Yilmaz, I.C. Comparative Cost Assessment of Cold Storage Plants and Natural Storage Structures for Potato. Potato Res. 63, 497–505 (2020). https://doi.org/10.1007/s11540-020-09454-0
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DOI: https://doi.org/10.1007/s11540-020-09454-0