The cold storage business in Tunisia that started as a new business must take care of electricity availability. You cannot afford to have electricity fluctuations. Besides, there is a huge capital investment to set up a cold storage warehouse or a cold storage business.
Why do you need cold storage?
The food industry brings the need for cold storage. It is mainly because cold storage works as an efficient preservation machine. The other economic sectors use cold storage equipment to safeguard their equipment. It is essential to have cold storage, but before deciding on it one should consider the temperature required for their products. It is a must to keep the products safe from spoiling. The need for cold storage in Tunis is for beverages, foods, and other businesses related. It keeps the products safe from spoiling and harm.
Look for NSSPL, the successful cold storage developers in the industry. This firm has a strong contribution to several projects across the country. This organization offers access to various locations, agents, companies, startups, and properties, looking for cold storage.
Why is there a need to increase storage facilities in Tunisia?
The need to increase the cold storage business in Tunisia is due to a few reasons:
Students– The students in the cities such as Gabes are in universities and colleges. They also include researchers, students, and part-time or permanent professors. At away times or summers, these groups or people store their kinds of stuff in the cold storage and rely on them.
Seasonal labor– In summer people comes to work in ski areas and other winter season jobs. They also continue working on fishing and hunting trips, at national parks. They involve in many popular summer jobs. These are people who badly look for products from cold storage as they get things instantly.
The common people in Kairouan, are now placing an order online for seasonal and offseason products. The cold storage facilities are the one feature that ensures everyone gets their orders fulfilled. Mostly it is also noted that the cold storage business in Tunisia earns huge money from its business. However, as the investment is high, these businesses call for a better investment.
It is now getting acceptance and social recognition that more facilities of cold storage are increasing.
How favorable is the business idea of opening cold storage business in Tunisia?
People looking for a business as a one-time investment will find investing in a cold storage business in Tunisia to be perfect. Though the initial investment is high than other businesses, the return is constant for the long term. It begins with:
Securing a Location
In a business, location plays a crucial role. Securing a location close to the consumer centers or the producing farms in Bizerte is essential. It is a must to cater for your warehouse the local produce. You must procure an acre of land for a multi-commodity or multi-purpose cold storage plant in Sousse of 5000MT capacity.
Profitability and Demand
The wastage is huge of fresh fruits and vegetables globally. Countries concentrating on food crop growth are the maximum wasters of fresh foods. It is essential to have cold storage to extend the marketing period and extend shelf life.
There is a need to consider post-harvest losses, and avoid glut during the production period, thereby ensuring quality production. Cold storages are important in decreasing the perishable commodities wastage in Sfax. It helps provide remunerative prices and makes the farm products available at affordable and competitive prices to consumers.
Investment cost of cold storage
The initial investment is high in this business. The investment includes the acquisition of land, construction of a building, obtaining licensing and permissions, arranging utilities such as electricity, water, etc. You need to invest as startup capital in buying the cooling machinery. Updated and modern machinery assures long-term sustainability and better performance.
Obtain Licenses & Permissions
Acquiring permissions and licenses attracts businesses. It depends on the location business will start. It facilitates checking tax liabilities and upcoming compliances. For example, if you wish to start the cold storage in Sidi Bou Said, and find there is nothing to fill the big space or portion. It means it keeps the cold storage empty. The portion that remains unfilled means your storage space goes waste. However, instead of that, you can give it on rent in your facility.
Precisely, in a cold storage facility, borrowing money from lenders or banks is not advisable. Profit depends on the storage capacity and the storage. If you run a 2000mT cold store and have the capacity full with potato storage, you will surely earn.
The earnings will reach 80 lakhs.
This earning will include paying per month Rs. 70000 as electricity bill for 2000MT. It means you pay for bills around 8 lakh and the remaining 4 lakh is for salary and maintenance. Finally, you earn around 70 lakhs.
Arranging funds is difficult for the cold storage business in Tunisia as it requires a huge investment. Getting funds as an investment for this business completely from savings is not the right option. The saving amount fulfills urgent requirements of cash during the business. Entrepreneurs may opt for a business loan as funds for the startup.
Cold storage business important points to consider:
- Land to use for cold storage facilities should be converted into non-agricultural land.
- The facility of cold storage is permitted to work per day for 12 hours
- Get a permission letter before constructing the facility from the local authority
- Testing of soil to understand load-bearing strength
- Proper drainage with the connectivity of road
- Safety precautions such as vacuum and pressure testing
- Use soft water or install a water softening plant
- Equip the cold storage facility with fire extinguishers, alarms, and exits
- Cold storage facility insurance
For real-time information, contact NSSPL. They will empower you with informed decisions to increase yield and reduce expenditure.