How Cold Storage Expansion Drives Market Development in Albania (Case of Apple Sector)

Abstract

The main objective of this research study was to determine the effect of cold storage investments on market developments of agriculture products in Albania. The study also examined how the increase in cold storage capacity and the loss reduction because of these investments would stimulate the increase in production and sales of agricultural products. The required data were gathered mainly from primary but also from some secondary sources through surveys and semi-structured interviews. The data gathered through the survey were processed and analyzed. There will be a summary of the respective findings regarding the profile of surveyed entrepreneurs, their investment trend in cold storage facilities, cold storage capacities, loss reduction due to increasing refrigerator rooms, their business activity, sectors involved, market segmentation, strategies, and other developments. We tested the research hypotheses using techniques like the Multiple Linear Regression method. The findings revealed, among other things, a significant positive relationship between sales of agricultural products and investments in cold storage capacities. It’s been statistically evidenced that such variables as Investments, Capacity, and Loss Reduction of Cold Storage are important in increasing Sales of Agriculture Products. Regarding the research findings, the authors recommended increasing investments in refrigerator rooms as it will make it possible to extend agricultural product consumption time. It is vital for agriculture enterprises focused on fruits and vegetables to have a scope of better understanding of these investments and their impact on the market drivers. By knowing better this component, these farmers and entrepreneurs will increase their investments in cold storage capacity, resulting in an extended product consumption time, and as a consequence expanding their internal and external markets in case of exporting. These findings are really important for the agriculture entrepreneurs, but more important for the governmental agencies, because this evidenced relationship will serve as a formula to drive different incentives and support schemas in cold storage investments, generating more contribution from the agriculture sector in the country’s GDP.