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Cold Chain Australia and the Need for Reefer Monitoring

Written by Mark Buzinkay | 25 September, 2024

Cold Chain Process

The Cold Chain is a seamless and ongoing process that begins at the point of production—whether that's the harvesting, manufacturing, or processing of goods—and continues until the products reach their final destination, where they are consumed. This process involves multiple layers and stakeholders, including farmers, manufacturers, distributors, retailers, and, ultimately, consumers. The key goal of the Cold Chain is to prevent spoilage and deterioration of perishable items by maintaining strict temperature controls throughout the entire journey.

Reducing foodborne illnesses and minimizing food waste are of paramount importance to consumers, regulators, the food industry, and the broader Australian economy. Each year, food contamination is responsible for millions of cases of gastroenteritis in Australia. Additionally, Australians discard billions of dollars worth of food annually. A major contributor to both foodborne illnesses and waste is poor management of the Cold Chain. Effective Cold Chain practices are vital domestically and for Australian exports. For instance, the US Food and Drug Administration (FDA) assesses the safety and reliability of the Australian Cold Chain when considering the importation of perishable goods. Similarly, exports to Asian markets are partly dependent on the efficiency and quality of Australia's Cold Chain operations.

 

Case study - Grape Export

On a warm summer morning in the Sunraysia region of Victoria, a family-owned vineyard begins the delicate process of harvesting grapes. These grapes are destined for export to Japan, where they are prized for their quality and freshness. The grapes are picked early in the morning to avoid the midday heat, which could damage their delicate skins and accelerate spoilage.

Immediately after harvesting, the grapes are placed into plastic crates lined with soft padding to avoid bruising. They are quickly transported to an on-site cooling facility, where they will undergo pre-cooling.

Once at the vineyard's cooling shed, the grapes are subjected to a process known as forced-air cooling. This step is critical, as it rapidly reduces the temperature of the grapes from around 30°C (ambient temperature) to just below 0°C. The cooling process is quick and precise to ensure that the grapes are not exposed to excessive moisture or condensation, which could cause mould or decay. By bringing the grapes to the ideal storage temperature of around -1°C to 0°C, their freshness is preserved, slowing down respiration and delaying spoilage.

After cooling, the grapes are carefully sorted and packaged. Specialized plastic packaging is used, including air holes, to maintain ventilation and protect the fruit from physical damage during transport. The packaging process also includes adding ethylene-absorbing pads to ensure that any naturally occurring ethylene gas, which accelerates ripening, is neutralized. Before leaving the farm, the grapes undergo a final quality inspection. Quality control staff check for signs of damage, mould, or any deviation from the desired size and colour. This step ensures that only the best quality grapes make it to the next stage.

The packed crates of grapes are loaded into a refrigerated truck. The truck's refrigeration unit is set to maintain the temperature at -1°C to 0°C, which is critical for preventing spoilage during the journey. The driver uses wireless temperature loggers that continually monitor and log the temperature inside the truck throughout the entire trip. The grapes are transported to a cold storage distribution centre located near Melbourne. Here, the crates are unloaded and placed into a large refrigerated warehouse where the temperature remains constant at around -1°C to 0°C.

At the distribution centre, the grapes are stored for a short period, typically just a few days. This cold chain warehouse is equipped with state-of-the-art cooling technology that maintains the ideal temperature and humidity levels, preventing dehydration and spoilage. The storage facility uses a wireless monitoring system that tracks temperature fluctuations and alerts staff to any issues, ensuring the grapes stay in optimal condition.

During this time, export documentation is prepared, and government officials inspect the grapes to ensure they meet both Australian and Japanese food safety standards.

Once cleared for export, the grapes are carefully loaded into a refrigerated container. This container is equipped with advanced cooling technology and a temperature monitoring system to ensure the grapes remain within the required temperature range throughout the journey to Japan. The container is then transported by truck to the Port of Melbourne. Throughout the journey, temperature logs are continuously recorded to ensure no deviation from the ideal range occurs.

At the export terminal, the refrigerated container is stored in a cold storage facility while awaiting loading onto the cargo ship. Here, the temperature is carefully monitored to ensure no break in the cold chain occurs. Any delay or deviation in the cold chain at this stage could risk the entire shipment being spoiled or rejected upon arrival in Japan.

Before the container is loaded onto the ship, officials check the temperature records one final time to confirm that the cold chain has been maintained without any issues. The logs confirm that the grapes have remained at the optimal temperature throughout their journey from the farm to the terminal, ensuring their quality for international markets.

The container is loaded onto a cargo ship destined for Japan. Even while on the ship, the container's temperature is monitored remotely using satellite-based tracking systems. This ensures that if any temperature fluctuations occur, they can be addressed promptly, protecting the grape shipment. Upon arrival in Japan, the cold chain continues as the grapes are quickly unloaded and transferred to cold storage in preparation for distribution to Japanese retailers.

 

Cold Chain Australia - Market

Australia's cold chain logistics market is valued at approximately A$ 8 billion (around EUR 4.9 billion). The primary sectors demanding cold chain services include the food and beverage (F&B) and pharmaceutical industries. Both industries have shown steady growth in Australia and are expected to continue expanding over the long term. Various factors contribute to this growth, both domestically and internationally, including population increases, the rise of e-commerce, increased international trade volumes, and government initiatives.

Australia is projected to have one of the strongest population growth rates among developed nations, with an expected 15% increase over the next ten years. This population surge will further drive demand for cold chain logistics, particularly as it relates to perishable goods. In 2023, food retail spending in Australia reached approximately AUD 170 billion, with projections showing this figure will surpass AUD 200 billion by 2028.

Food and beverage exports account for 11% of Australia's total merchandise exports. This share is expected to rise as Australia leverages its comparative advantage in food production and strengthens export ties with Asian markets. Key food export destinations for Australia include Japan, the United States, Europe, and China. New and emerging markets, such as the Middle East, the UK, Brazil, and India—representing 25% of the global population—are also becoming increasingly important.

Six key factors drive the growth of Australia's pharmaceutical sector:

  1. Global demand: The value of both imported and exported medicinal and pharmaceutical products has risen steadily over the last three decades, spurred by population growth.
  2. Domestic ageing population: As Australia's population ages, there is a rising demand for health-related goods and services. By 2060, almost 50% of the population will be over the age of 65.
  3. Government health expenditure: There is significant government spending on health-related goods and services.
  4. Government incentives: A range of initiatives and incentives support the pharmaceutical sector.
  5. World-leading research institutions: Australia is home to some of the world's best research facilities.
  6. A skilled workforce: The availability of a highly trained workforce bolsters growth in this sector.

 

Cold Chain Australia - Landscape

Globally, the total capacity of refrigerated warehouse space is around 750 million cubic meters. In 2024, Australia's refrigerated warehouse capacity stands at approximately 10.2 million cubic meters. While the United States has the largest refrigerated warehouse space (160 million cubic meters), the Netherlands leads in per capita capacity, with nearly one cubic meter of space per urban resident. In comparison, Australia currently offers about 0.4 cubic meters of space per resident, lagging behind countries like Canada, the UK, and the US but surpassing nations such as Japan, Germany, China, and France. It is expected that Australia will increase its available refrigerated warehouse space to about 0.6 cubic meters per resident in the coming years.

 

The Cold Chain Australia Guidelines

In 2017, the Australian Food & Grocery Council (AFGC) developed the Australian Cold Chain Guidelines, in partnership with industry stakeholders. These guidelines outline best practices for transportation, logistics, and safety to ensure the quality and safety of chilled and frozen foods.

A fundamental component of cold chain management is record keeping. This is crucial for several reasons. First, maintaining accurate records is a mandatory part of food safety plan requirements for businesses throughout Australia. Non-compliance, such as failing to keep proper records, can lead to criminal penalties. Secondly, independent food auditors rely on records to verify that food safety and quality standards are being met. Failing an audit can have serious consequences for customer contracts. Third, detailed logs and records are essential for addressing situations where something goes wrong, such as handling claims for damaged goods. Precise documentation of temperatures and times enables businesses to make informed decisions.

Additionally, record-keeping helps ensure that Cold Chain conditions have been consistently maintained. This is critical, as certain forms of spoilage, such as enzymatic activity, can still occur at low temperatures—even as low as -18°C—and may affect food flavour and quality. Without accurate records, there is no guarantee that spoilage hasn't taken place, which may lead to goods being rejected. Typically, auditors require businesses to retain records for at least two years to satisfy food safety regulations domestically and internationally.

Another key aspect of the cold chain is handling temperature-sensitive products during receiving and delivery. According to the guidelines, transport operators are required to provide receiving operators with original or copies of load-in documentation showing product temperatures at loading, in-transit temperature logs, and manual records of temperature checks. These documents should outline the required Cold Chain conditions, including maximum out-of-refrigeration times and necessary responses in the event of a temperature breach. Both transporters and receivers are required to retain these records according to their procedures.

Temperature measurements should ideally be conducted using non-invasive surface temperature devices, such as wireless tags, which monitor temperature fluctuations without requiring the refrigerated space to be opened. Wireless data loggers are preferred over manual recording methods, as they can trigger an alarm if the temperature exceeds pre-set limits, ensuring quick action can be taken.

This rigorous approach is essential to maintaining the integrity of Australia's Cold Chain and ensuring that temperature-sensitive goods are delivered in optimal condition (read more about cold chain requirements here).

 

FAQs Cold Chain Australia

What is the Australian Cold Chain, and why is it important?

The Australian Cold Chain is a highly advanced logistics system that is essential for maintaining the quality, safety, and freshness of perishable products throughout their journey across the supply chain. This system is particularly crucial in Australia due to the country's vast geography and diverse climates. It ensures the proper handling of temperature-sensitive goods such as food and pharmaceuticals, preserving their integrity from production to final consumption. By preventing spoilage and reducing foodborne illnesses, the Cold Chain plays a vital role in protecting public health, reducing food waste, and supporting Australia's economy through both domestic and international trade.

How does the Cold Chain process work for products like grapes?

The Cold Chain for grapes begins at the vineyard, where they are harvested early in the morning to avoid heat exposure. After harvest, the grapes are quickly cooled using forced-air cooling to decrease their temperature to just below 0°C, preventing spoilage. They are then packaged with protective materials and ethylene-absorbing pads to slow down the ripening process. These grapes are transported in refrigerated trucks, which maintain consistent temperatures of -1°C to 0°C, and stored in cold storage warehouses until they are prepared for export. Throughout the entire journey, from the farm to the export terminal, temperatures are constantly monitored using wireless data loggers to ensure that the Cold Chain is never broken, guaranteeing the grapes' quality for international markets.

What are the guidelines and requirements for maintaining the Cold Chain in Australia?

Australia's Cold Chain Guidelines, developed by the Australian Food & Grocery Council (AFGC), outline best practices for the safe transportation and handling of chilled and frozen foods. A key requirement is meticulous record-keeping, which is essential for food safety compliance, audit processes, and dealing with any claims or issues that may arise during transport. Temperature logs must be kept at every stage of the supply chain, and operators are required to provide documentation of product temperatures and Cold Chain conditions during loading, transit, and delivery. Wireless temperature monitoring devices are preferred as they allow continuous tracking without the need to open refrigerated spaces. Proper record-keeping is also mandatory for export compliance and must be retained for at least two years.

 

Takeaway

Maintaining a seamless Cold Chain is vital to preserving the quality and safety of perishable products, especially in a country as vast and climatically diverse as Australia. From farm to final destination, continuous temperature control is key, particularly for exports where minor deviations can lead to product rejection. Rigorous record-keeping and monitoring are essential to ensure compliance with safety standards and prevent spoilage. This makes reefer monitoring systems indispensable, as they provide real-time tracking and alerts, ensuring that temperature-sensitive goods are consistently protected throughout the entire supply chain.

 

Delve deeper into one of our core topics: Cold chain monitoring

Sources:

(1) https://www.afgc.org.au/wp-content/uploads/2019/07/Australian-Cold-Chain-Guidelines-2017.pdf

(2) RWTA https://www.rwta.com.au/

(3) https://mktgdocs.cbre.com/2299/fdab8323-97b4-4218-8304-6ccff76d4ea1-2620718348/v032024/australia-cold-chain-logistics-cbre-research-2024-1-.pdf