Agricultural cold storage infrastructure

Armenia Cucumbers at outdoor fresh food market
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Agricultural cold storage infrastructure
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Establish and operate cold storage facilities to aggregate and store agri-produce, where either (i) farmers or cooperatives invest, own and operate; or (ii) specialized supplier firms invest, own and provide services to farmers; or (iii) a specialized storage construction firm invests, then leases the storage to farmers.

Expected Impact

Increase income and reduce environmental footprint of agri-food supply chain via enhanced agri-food storage and market operation, and reduced food waste.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< 5% (CAGR)
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Responsible Consumption and Production (SDG 12)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Industry, Innovation and Infrastructure (SDG 9)
Sector Sources
  • 1) Government action program 2019-2023, https://www.gov.am/am/Five-Year-Action-Program. 2) National strategy and action program to combat desertification in the republic of Armenia, Ministry of Nature Protection of Armenia, http://www.mnp.am/uploads/1/1551885091anapat_eng-1.pdf. 3) Voluntary National Report (VNR) of Armenia, for the UN High-level Political Forum on Sustainable Development, 2018. 4) National strategy and action program to combat desertification in the republic of Armenia, Ministry of Nature Protection of Armenia, http://www.mnp.am/uploads/1/1551885091anapat_eng-1.pdf. 5) Sustainable Development Report, 2019, https://www.sdgindex.org/reports/sustainable-development-report-2019. 6) Ministry of Agriculture, www.minagro.am/պետական-օժանդակության-ծրագրեր. 7) State Cadaster Committee, Armenia, https://www.cadastre.am/storage/files/pages/pg_4062968307_22.pdf. 8) Intended Nationally Determined Contributions of the Republic of Armenia under the UN Framework Convention on Climate Change (UNFCCC), https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Armenia%20First/INDC-Armenia.pdf. 9) FAO, Food Waste and Loss in Armenia, http://www.fao.org/3/a-au842e.pdf. 10) World Bank, Development Indicators, https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=AM&view=chart. 11) Statistical Committee of Armenia, Labor Market in Armenia, 2019. 12) Statistical Committee of Armenia, Food Security and Poverty in Armenia, 2019, https://www.armstat.am/am/?nid=82&id=2125. 13) Statistical Committee of Armenia, https://www.armstat.am/file/article/eco_booklet_2018.pdf. 14) The Strategy of Main Directions of the Development of Agriculture of Armenia 2020-2030, https://mineconomy.am/en/page/1467.
IOA Sources
  • 21) UNDP interviews with stakeholders, 2019. 22) Investment Guide Armenia, Ministry of Economic Development and Investment, 2017, http://uk.mfa.am/u_files/file/invest/investinarm.pdf. 23) Agro-investment Guide Armenia, https://www.eda.admin.ch/dam/countries/countries-content/armenia/en/Investment%20Guide.pdf. 24) FAO AQUASTAT, http://www.fao.org/nr/water/AQUASTAT/data/query/results.html. 25) Tackling the Challenge of Smallness in Agricultural Market, 2016, G. Gabrielyan et al, Center of Agribusiness and Rural Development (CARD), Armenia. 26) Greenhouse Crop Supply Chain Review: Armenia, 2016, G. Gabrielyan, Washington D.C. World Bank Group. 27) Report on capacities of cold storages operating in Armenia, P. Asatryan Zh. Aghajanyan, 2012, Fund for Rural Economic Development in Armenia (FREDA), http://freda.am/wp-content/uploads/2015/06/51.pdf. 28) Logistics Capacity Assessment, https://dlca.logcluster.org/display/public/DLCA/2.6+Armenia+Storage+Assessment. 29) Standard (GOST 12.2.233) on Working Safety of Requirements for Refrigerated Storage Facilities, https://www.sarm.am/am/standards/view/133804. 30) FAO FAOSTAT, http://www.fao.org/faostat/en/#data/QC. 31) The Strategy of Main Directions of the Development of Agriculture of Armenia 2020-2030, https://mineconomy.am/en/page/1467.