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Japan’s Cold Storage Firms Spread Throughout Southeast Asia

More than just Bangkok Japanese restaurants providing cuisine to the Kingdom, Japanese companies are also seeing increasing popularity across Thailand, as well as across the region as the urban populace up their demand for fresh food.

On the outskirts of Bangkok, Japanese logistics firm Nichirei opened a cold-storage centre utilizing their country’ insulation technology, paired with refrigerated trucks. Opened back in 2014, the facility originally handled products like chicken and juice, but has been seeing an increasing demand in foods like dairy as the local tastes shift to be more Western. The President of Nichirei reinforced that notion with a statement that says that changing diets are fuelling increasing demand for refrigerated and frozen transportation.

The facility is run via a partnership with the local conglomerate, the Siam Cement Group, which handles training for complex tasks. Notably, employees are given computational problems on a daily basis in order to develop their skills, and are moved into more demanding positions as they improve.

Siam Cement, which has another joint venture with a Japanese logistics firm, will be adding “online food delivery” to their portfolio, building up on their partnerships for a stable service, according to a director in the company’s distribution segment regarding new developments.

Malaysia and other countries are also seeing Japanese cold-chain services, but notably, there are also some gaining a foothold in Myanmar. The country, considered the region’s last frontier for businesses, saw Sojitz establishing a facility for the handling of wholesale for City Mart Holding, Myanmar’s largest retailer.

The market for goods like dairy and meat products have been seeing an increase throughout Southeast Asia. Projections expect that consumption will go up to a total of $21.1 billion by 2020 among the region’s six largest countries, which would be a marked increase of 140% from 2010.

While exotic cuisine like Bangkok Japanese restaurants are always en vogue, the daily meals have shifted from the traditional marketplaces towards convenience stores and supermarkets. Refrigerated and frozen goods are nor also easier to procure thanks to major distributors offering shipping.

On top of all of this, Southeast Asia’s rapid urbanization has also been underway, which has resulted in the increased demand for the transport of fresh produce from farming villages. Asia’s urban population went up by 30% from 2005 to 2015, and the United Nations is expecting similar growth, projecting a 21% increase by 2025.

 

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