Comparative Cost Assessment of Cold Storage Plants and Natural Storage Structures for Potato
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Comparative Cost Assessment of Cold Storage Plants and Natural Storage Structures for Potato Deniz Yilmaz 1
& I.
Cengiz Yilmaz 2
Received: 28 May 2019 / Accepted: 24 January 2020/ # European Association for Potato Research 2020
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. Keywords Building cost analysis . Monte Carlo simulation . Potato cold storage .
Refrigeration
Introduction Refrigeration is the best technology to ensure food safety and extend the shelf life of perishable foods. That is why more and more food processors and manufacturers are building cold storage warehouses. However, cold storage plant investments can be * Deniz Yilmaz [email protected] I. Cengiz Yilmaz [email protected]
1
Mechanical Engineering Department, Istanbul Arel University, İstanbul, Turkey
2
Civil Engineering Department, Istanbul Arel University, İstanbul, Turkey
Potato Research
financially difficult for small producers. In this case, the question in the minds of manufacturers, especially those who store in conventional ways, is the return on investment of the construction and installation of a modern cold store. This is particularly important for potato growers in Turkey and in similar situations worldwide. Potato is one of the most important food crops. Its ease of cultivation and high energy content has made it a valuable cash crop for millions of farmers. Potato consumption is quickly expanding in developing countries which currently constitute more than half of the global harvest. According to the FAO’s (Food and Agriculture Organization of the United Nations) 2017 statistics, 388 million tonnes of potatoes were produced in the world. Sixty-five percent of this production is provided by China, India, Russian Federation, Ukraine and the USA. Turkey has 4.8 million tonnes of potato production and while 2–2.5 million tonnes of the potatoes are sent for consumption after harvesting, the rest is kept in warehouses and presented to the market intermittently. In Turkey, which has a variety of climatic conditions, thousands of tonnes of fresh fruits and
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