DFCD supports cold storage to reduce food waste and increase resilience of small holder farmers

By supporting the expansion of Global Cold Storage Pvt Ltd, the DFCD initiative aims to move the needle on food preservation in Nepal, significantly reducing food waste and bolstering the livelihoods of thousands of smallholder farmers through enhanced resilience and sustainability.

The Nepal Aggregator Origination Facility Investment Committee has approved a proposal to support Global Cold Storage Pvt Ltd to expand its fruits, vegetables, and spices value chain.

The development of the investment proposal will enable Global Cold Storage Pvt Ltd to get commercial financing from NMB Bank (Nepal Aggregator partner bank of FMO) to expand it fruits, vegetables, and spices value chain through-out the country.

In light of the foregoing, SNV Nepal intends to sign a EUR 87,750 grant funding agreement with Global Cold Storage Pvt Ltd to support the final development of the investment proposal and a technical assistance package.

The technical assistance package will support the company in 3 specific areas:

· Global Cold Storage Pvt Ltd is a traditional Nepali medium scale company operated without proper business management processes. As the company is investing for expansion the company seeks technical support from DFCD to integrate modern business management process including financial management, logistics management, marketing, HRM etc.

· Waste generated from the company is significant and bio-degradable in nature, but the company does not have a proper waste management plan and facility, hence the company seeks technical support for waste management.

· The company intends to identify and pilot some advanced, energy efficient, cooling technological features to the cold storage facility like Pre-cooling chamber, fruit ripening chamber and frozen cold storage facility. These added features in the cold storage facility will help them to diversify their value chain and provide additional services to clients.

This project is expected to achieve Rio-Marker 2 for minimizing post-harvest food loss.

The impact of the originating stage includes:

· Economic Development - create at least 15 direct jobs, 400 indirect jobs and increase income of more than 3000 farmers.

· Climate resilient food security – preserve 12,000 tonnes of quality food by preventing post-harvest losses.

About the DFCD

The Dutch Fund for Climate and Development (DFCD) is a climate resilience fund, dedicated to supporting climate adaptation and mitigation projects which benefit vulnerable communities and landscapes. It is funded by the Dutch government and managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit the DFCD website.

About SNV

SNV is a global development partner deeply rooted in the African and Asian countries where we operate.

With 60 years of experience and a team of approximately 1,600 people, we strengthen capacities and catalyse partnerships that transform agri-food, energy and water systems. Working on the core themes of gender equality and social inclusion, climate adaptation and mitigation, and strong institutions and effective governance, we tailor our approaches to different contexts to achieve large-scale impact and create sustainable and more equitable lives for all.

About Global Cold Storage Pvt Ltd

Global Cold Storage Pvt Ltd, established in 2022, is the subsidiary one of the biggest suppliers of fruits and vegetables in Nepal. Their business model is to aggregate seasonal vegetable and fruits from small holder farmers, cooperatives, and farms across the country, store it in cold storage facility for certain period and supply it throughout the country.

You can read the full disclosure document here.

For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact:

SNV - Dutch Fund for Climate and Development: dfcd@snv.org