“Businesses have been focusing on energy savings with the continuous rise in costs, while at the same time the prices growers receive are being squeezed,” says IMA Cooling Systems managing director, John Dye. “Companies are focusing on reducing their energy bills and we can help them. On some projects, we managed to cut up to 25 per cent off the refrigeration costs.
“In the past 18 months, 85 per cent of our jobs have included the installation of an energy saving device - an electronic expansion valve produced by Danish company, Danfoss group. The valve has become so popular with the UK horticulture sector that sales have grown from nothing to a substantially high turnover over the last five years.” The valve has been available in the marketplace for 15 years but has been mainly used by supermarkets. The technology has now been adapted so that suppliers can benefit too. Another advantage to buyers is that the valve is approved and recognised by the UK government for its environmental benefits, and is therefore tax deductible.
“Recent jobs have included energy saving projects for cold stores with Lincolnshire Field Produce and Greenfield Produce and we have completed a major installation with Gomez in Kent.”
The UK’s Cold Storage and Distribution Federation (CSDF) is launching an energy scheme to provide its members with better price information when buying electricity. “Most of our members are locked into annual power contracts at a fixed rate, although prices are very volatile,” says marketing manager Doug Waring. “Together with the Energy Information Centre, this scheme will track electricity prices and members will have access to price information allowing them to make better-informed decisions when entering into energy contracts.”
The CSDF is the only trade association in the UK that represents and promotes the interests of the entire temperature-controlled supply chain and the fresh produce sector accounts for 30 per cent of its members. In 2005 it will also run a scheme, with the Carbon Trust, to provide free on-site consultancy to its members, to help to improve refrigeration efficiency. Waring explains: “Expert consultants will visit the site and review and assess existing refrigeration equipment, provide advice and adjust systems that are in place.”
The federation previously ran a successful scheme aimed at managing rising insurance premiums and offering significant savings. “Most cold stores have faced increasing insurance premiums since 9/11 as premiums required for protecting insulation panels rise. In 2003, we collaborated with an insurance company to offer our members significant savings - the campaign was successful with 40 per cent of our members taking up the offer.”
The fresh produce industry has experienced a steep rise in insurance premiums for its cold stores and packhouses. These have increased because insurance companies class traditional construction materials (which almost 75 per cent of the UK’s cold stores are made of), as combustible material. ICA Ltd, which designs and builds cold stores and packhouses, has dedicated more time over the last year working with customers and insurance companies to design insurance-friendly building solutions, says sales director, Andrew Wills.
ICA completed the construction of a new packhouse for UK strawberry grower and packer, Hugh Lowe Farms. Wills says: “The panels installed were insulated with PIR (polyisocyanurate) for the ceilings and rockwool for all walls, all approved by the insurance companies. However, this added 18 per cent to the contract price.
“Some of our customers are considering taking down existing panels and rebuilding with PIR and rockwool panels. While this may seem drastic, there is often a compromise to be made. We are keen to make sure that our customers get the best deal possible without compromising safety. About 80 per cent of our new builds specify PIR or rockwool insulated panels and these provide the advantages of power savings, because of better insulation, have a greater life span and satisfy the Loss Prevention Council standards.”
The driving factor behind modernising storage for Kentish top-fruit grower A Hinge and Sons was the future success of the business, says director Robert Hinge. “UK consumers want their fruit of top quality year-round. English growers face stiff competition from many countries nowadays, and we have to be on our toes to always have fruit available exactly when customers want it,” he says.
Previously, the grower had cold storage facilities with East Kent Packers, but decided it should have its own. “Our main customer is Marks & Spencer and we wanted complete control over the fruit to meet its requirements,” says Hinge.
ICA provided the storage chambers and Farm Refrigeration designed, supplied and installed the refrigeration system. The project was a new venture for Hinge: “I’ve had to learn all about controlled atmosphere storage from scratch and it’s been a steep learning curve. However, I’ve been really impressed by the whole way the project was handled, the level of support from everyone and it all being done on time.”
The design parameters were based on a maximum ambient temperature of 30°C and with a maximum room void temperature of 40°C. The new store comprises six compartments - one of 130 tonnes, two of 113t and three of 98t capacity. Approximately 40-50 per cent of the Cox crop is for M&S on a tree-ripening scheme, so consistent quality is vital. He adds: “Now we can bring fruit to market when either I or my customers want it.”
Farm Refrigeration, together with its associated company Van Amerongen UK, has been busy with large controlled-atmosphere projects for UK growers; Adrian Scripps, AC Goatham and Sons, and Blackmoor Estates. “The order book is filling rapidly as the pressure of increasing requirements for the quality and reliability of fruit storage become an increasingly essential part of growers’ contracts with their customers. The latest touch-screen technology control panels and Van Amerongen top-quality carbon-dioxide scrubbers form part of this,” says managing director, John Haffenden.
Both Blackmoor Estate in Hampshire and AC Goatham, in Kent, ordered 13,000 square feet CA stores. The new stores were built using the latest PIR insulated panels that are fully approved by the Loss Prevention Council, and acceptable to major insurance companies. Each store has full-sized CA doors, and inspection hatches with internal panel joints gas sealed with Ribbfill paint.
Haffenden says: “The important requirements for customers were improved efficiency and reduced operating costs with the new stores. Farm Refrigeration’s supply of liquid amplification pumps ensure the efficiency of the system and reduce running costs by 30-45 per cent. The refrigeration plants each have three-compressor packs - Blackmoor, 75hp and Goatham, 90hp - which are connected to low profile, low-velocity coolers that give an even air distribution, with steady temperatures and low dehydration of the fruit.”
Both Peter Barwick, director of the Blackmoor Estate and Clive Goatham, director of AC Goatham and Son, praised the quality of work carried out on their respective stores as they were delivered to specification and budget. Goatham says: “They provided me with exactly what I asked for - a new store of up-to-date specification, at a competitive price, totally on time and with no extras.”
SpaceWise provides the UK horticulture sector with an alternative to buying cold storage facilities if budgets are constrained. UK sales director Kabir Rawat says: “A few months ago we researched the UK horticulture sector and found there are customers in fresh produce with excess equipment. Farmers mainly buy their equipment but leasing is an option that should be considered. To buy a 20-foot refrigerated container costs £5,000 but to lease one is £18 a day. There are advantages to leasing: competitive long-term rates, the container is covered 24/7 because we own it and are responsible for the cost of repairs.”
SpaceWise is an independent UK business, owned by US company, Transamerica Leasing, since November 2004. Rawat says the new ownership gives the company a new platform to work from and potential for growth. He says: “We aim to grow the container leasing business in the fresh produce sector. SpaceWise customers already include supermarkets and farmers. We offer a range of cold store for rent or purchase. Our containers are made of rugged steel with flat, hardwood floors and come with ramps and lights.
“Once we have discussed with the customer what their cold store needs are, such as location, number of containers required, our engineers go on site for the set up and training on container management and care. We have a fully trained and dedicated support team and a nationwide network of depots around the UK.”
The company was established to maximise the potential of excess capacity available from containers used in shipping. Rawat explains: “The primary owners of shipping containers are shipping lines and container leasing companies.
“Most containers are designed for a sea life of 15 years but many shipping lines and leasing companies retire their containers after 10 years of maritime use. But the containers still have many years of useful life remaining in less demanding storage or domestic applications. This was the opportunity for SpaceWise; offering affordable storage for customers, allowing us to provide customers with quality containers consistently at the best prices throughout the UK.”
Increasing in popularity for cold storage, says IMA’s Dye, is a fogging sterile water unit, which converts water into fog. He says: “This product uses purified water. The purification process softens the water and reduces the droplet size, which is easily absorbed by fruit and veg. And because the fog floats in the room it helps to extend the shelf life of the produce - in summer, shelf life can be extended by 20 per cent.”
IMA approached Dutch manufacturer, Contronics Engineering, which has a specially designed range for humidifying food kept in cold stores or refrigerated cabinets, to develop a bigger version of the fogging device that was used by supermarkets. Dye says: “We wanted to be able to offer it to suppliers with bigger cold-store facilities. We have been selling the product for two years now and we have seen an increase in demand for the product in the jobs we have completed - 35-45 per cent of jobs are moving away from conventional devices to ultrasonic fogging.
“The device has proven popular with brassica growers - TH Clements uses it, and Gomez for its grape storage. However, its disadvantage is that it is an expensive product and suppliers are finding current trading conditions tough and at the same time investment budgets are tight.”
IMA has been trialing the production of some of its products in India. Dye says: “India is an interesting manufacturing market for us and offers potential. We have set up a joint venture with another UK manufacturer of conventional units and IMA will produce high-humidity coolers.
“The biggest market for this cooling equipment is Africa and we are hoping to set up production for that area from India,” says Dye. “Initially we sent assembly-training kits only during the test phase and for training. But we expect full assembly to commence in 2005. At the moment, it is a small-scale facility and we anticipate only 10 per cent of production to come from India. The partnership is ideal as the other group manufactures conventional coolers and we produce high-humidity coolers so we can offer customers a complete package from one factory. This new venture could spell great potential.”
SIMPLY COLD FOR M&S
Hubbard Transport Refrigeration Solutions have joined forces with Marks & Spencer to provide transport refrigeration services for the Simply Food stores. Hubbard has strengthened its product range in recent years to include alternator-powered units and under mounted independent diesel units for trailers, offering refrigeration units from vans to semi-trailers.
“We have three stages of approach,” says sales and marketing director Roland Gibson, “and flexibility in design to customise products to the task. We make our r&d team available to clients and develop custom vehicle-refrigeration solutions quickly - usually a prototype is complete within 30 days.”
Hubbard offers a range of direct drive and alternator-driven mechanical systems, providing high capacity cooling for home delivery and business-to-business applications. Marks & Spencer chose the combined Hubbard Govers alternator and eutectic system because of its high refrigeration efficiency and environmental benefits, with the added bonus of low noise pollution.
Nick Livesey of M&S says: “We chose the HG754LV system due to its flexibility and ability to fit in with the environmental stance of M&S, especially since the majority of Simply Food stores are city-based.”
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