Abstract: - The main objective of this research study was to determine the effect of cold storage investments on

market developments of agriculture products in Albania. The study also examined how the increase in cold

storage capacity and the loss reduction because of these investments would stimulate the increase in production

and sales of agricultural products. The required data were gathered mainly from primary but also from some

secondary sources through surveys and semi-structured interviews. The data gathered through the survey were

processed and analyzed. There will be a summary of the respective findings regarding the profile of surveyed

entrepreneurs, their investment trend in cold storage facilities, cold storage capacities, loss reduction due to

refrigerator rooms as it will make it possible to extend agricultural product consumption time. It is vital for

agriculture enterprises focused on fruits and vegetables to have a scope of better understanding of these

investments and their impact on the market drivers. By knowing better this component, these farmers and

entrepreneurs will increase their investments in cold storage capacity, resulting in an extended product

consumption time, and as a consequence expanding their internal and external markets in case of exporting.

These findings are really important for the agriculture entrepreneurs, but more important for the governmental

agencies, because this evidenced relationship will serve as a formula to drive different incentives and support

schemas in cold storage investments, generating more contribution from the agriculture sector in the country’s

GDP.

Cold storage is an infrastructure investment that

helps producers of fruits and vegetables keep their

products cool for a specific time to meet market

demand with high-quality and competitive offers.

and other cold spaces.

frozen food products comprise the majority of cold

storage revenues, comprising 88% of the total. The

remaining 12% of revenues come from

pharmaceuticals, flora, and fur products. Within the

88% share, retailers, wholesalers, and food

manufacturers play significant roles, with retailers

accounting for 22%, wholesalers for 33%, and food

manufacturers for another 33%. The intense focus

supply chain. Despite being commonly perceived as

mere storage facilities, their importance to the food

system cannot be overstated.

facilities, they play a vital role in the food supply

chain. These facilities provide more than just

storage, offering value-added services such as

processing, labeling, and logistics support, including

import and export facilitation. Moreover, modern

cold storage facilities are equipped with advanced

depending on cold storage space. Considering the

characteristics of these products, it has been

challenging for many farmers in Albania to deal

with the yearly extended market demand when such

products are only produced seasonally.

started investing in cold storage capacities to keep

their production cool for months and sell them when

the products are out of season. These cold storages

have increased the total production of fruits and

While there are a few cooperative associations and

state enterprises, their presence and significance are

minimal.

of the household farm in Albania: a) the small size

of individual land parcels and b) the significant

systematic and strategic coordination of traditional

business functions and tactics within a company and

across businesses within the supply chain. The goal

is to enhance the long-term performance of

individual companies and optimize the overall

performance of the entire supply chain, [4].

financial resources, human resources, and

information flow within and across the supply chain

to maximize customer satisfaction and gain a

strategy that reduces costs and maximizes customer

satisfaction, leading to a sustainable competitive

advantage.

SCM, as it relies on the specific characteristics of

each region to produce different products. Any

failure in the procurement, transportation, storage,

and retail processes can have severe consequences,

potentially causing large-scale famine in affected

regions. SCM in agriculture enables effective

to stop or slow down their deterioration process

while they are transported from production to

distribution to the client was mandatory.

Deterioration can occur due to natural processes,

such as water loss, changes in temperature, physical

damage, or invasion by microorganisms.

temperature of the environment interacts with and

influences all these factors. Therefore, cooling is

necessary to slow the metabolic process within and

his invention was modified for use on trains and

ships. With Clarence Birdseye's flash-freezing

invention, Jones's refrigeration system

revolutionized the availability of fresh and frozen

foods worldwide, regardless of the season.

fluctuating transportation conditions necessitate

properly safeguarding cargo against damage.

Certain goods transported and stored have specific

requirements that demand temperature monitoring

throughout the process. The concept of the cold

supply chain is associated with effectively managing

the movement of goods that require temperature

monitoring, [12].

are susceptible to temperature fluctuations and

different product groups. Of particular interest in

this study is the temperature range of 12°C to 14°C,

allowing for effective fruit ripening monitoring,

[13].

vegetables (F&V) is more intricate than other

supply chains. This complexity arises from factors

such as the perishable nature of the products,

significant fluctuations in demand and prices,

growing consumer emphasis on food safety and

conditions during the logistics process can result in

the rapid deterioration of food products, potentially

rendering them unsafe for consumption by

customers, [16].

crucial to continuously monitor the temperature of

products at every stage of the supply chain.

Additionally, implementing suitable measures and

action plans is essential to minimize costs, preserve

product quality, enhance customer satisfaction, and

between cold supply chain capacities and better

performance in delivering the final products in the

agriculture sector. It can be further analyzed as an

indirect impact on incentivizing farmers to produce

more agricultural products, since the demand side

will have a better reflection towards their products.

prove the hypothesis:

Ho: The effect of Investments, Capacity, and Loss

Reduction of Cold Storage is unimportant in Sales

of Agriculture Products.

H1: The effect of Investments, Capacity, and Loss

Reduction of Cold Storage is essential in the Sales

of Agriculture Products.

determining the behavior of the dependent variable.

methodology is: Are sales volumes of apple fruits

dependent on cold storage investments, and their

capacity and loss reduction derived from these

investments in the cold supply chain?

Theoretical model specification is:

Losses reduction - The percentage of Losses

Reduction

entrepreneurs was surveyed to collect data by using

face-to-face interviews. The survey utilized a

structured questionnaire and targeted a sample of 35

rural enterprises that have invested in cold storage

and are engaged in apple tree cultivation. We

surveyed two pre-selected districts of Albania,

trees) to represent the regional pattern of the

economy.

increasing every day based on the tradition of

cultivating different fruits and having a favorable

climate suitable for many of them as apples, for

example, in Korca, Dibra, and other mountainous

regions of the country.

important fruit tree crops in volume and value. With

over 1,5 million apple trees, the region of Korça

produces more than half of all apples grown in

Albania, [19].

apple production, something that customers also

acknowledge thanks to favorable soil, climate, and

production expertise.

apple trees in the district of Korca, followed by

Devolli, Pogradeci and Kolonja having lesser apple-

growing areas. Furthermore, the apple, which

accounts for 43% of all the trees, is the most

important fruit in Dibra, [2].

the other hand, 17.1% mentioned a decrease, and

none reported a significant increase or decrease

(Figure 11).

Fig. 11: The process of production/processing

Fig. 12: The market served in the Value Chain

the surveyed enterprises reported an increase, while

31.4% stated that it remained the same. In contrast,

17.1% mentioned a decrease, and 5.7% reported a

significant increase. None of the respondents

Cold Storage investments, about 97% of surveyed

enterprises said it has stimulated the production of

agricultural and livestock products, and only 3% of

them said it had not had such an impact (Figure 16).

Fig. 16: Entrepreneur’s opinion about Cold Storage

investments

4.3 Regression Analysis

As described in the methodology chapter, the

reviewed model in our study is the relationship

between Sales of Agriculture Products and three

other independent variables: Investments, Capacity,

and Loss Reduction of Cold Storage.

Predictors:

Cold Storage

Reduction