Building a fruit and vegetable cold storage




Territory of Teslic municipality


Production of berries – primarily raspberries – and vegetables (cucumbers) is growing in the territory of Teslic municipality. On the other hand, there are no storage capacities to hold and keep the produced fruit and vegetables. There is more than 200 raspberry producers and more than 100 cucumber producers in the territory of the municipality. For that reason, building of a cold storage and supporting facilities for their holding and keeping is necessary for production maintenance and expansion. The building of a cold storage is planned in one of the youth halls existing in the rural local communities, which could be adapted (estimated capacity of 500 tons), or in the territory of one of the business zones where preconditions for building exist. The building of a fruit and vegetables cold storage would be a long-term solution for the problems faced by agricultural producers, primarily the lack of space for storage of picked fruit and vegetables or small capacity of the existing cold storage in the territory of Teslic


5.1 What type of project is it?

This is a greenfield project to be fully implemented by the investor. The building of such a facility would include the area for receipt of goods, their refrigeration, classing, and freezing up to -35°С (freezing raspberries requires procurement of the so-called shock tunnels for fast freezing). The potential investor would be supported by the municipality in the implementation of activities by incentive funds for employment of new workers in the built facility. Also, the municipality will assist in establishing cooperative relations between the investor and producers in the territory of the municipality. If the investor decides to build in a business zone, they will benefit from the developed infrastructure and land. If they decide to build the facility in one of the existing community centers, the municipality will be actively involved in the selection of location and resolution of property ownership issues.

5.2 Project status

Currently, the project is in the phase of an idea. However, a berries sector analysis was prepared previously and provided a rationale for building of such a facility. Also, strategic documents provide for the building of the above facilities, and in connection with that, the municipality provides support funds through incentives for employment in the built facility and through support for building of a fruit freezing facility.
In the territory of the municipality, there is raw material base necessary for the implementation of the proposed project and an established relation between municipal services and producers.
The Regulation Plan provides for a possibility to build the proposed capacities within a business zone and, therefore, construction is ongoing of the necessary infrastructure needed for project implementation.

5.3 Reasons to invest in the project

In view of the development level of the raw materials base in the territory of the municipality, the growth tendency of production and the fact that there are no storage or keeping capacities in the territory of the municipality, by building the proposed facility, the investor would have no competition. Furthermore, high prices at the frozen raspberry market and the fact that there are no significant barriers to exporting this type of goods guarantee high profitability. From all the above, fast return on investment can be expected, in particular taking into account the support provided by the municipality and responsible ministry.


6.1 Estimated project value in €

The estimated project value is about 300,000 euro (cold storage building).
The total price of the entire investment would depend on investor’s plan (to include processing, etc.)

6.2 Planned sources of financing

The investment is planned to be made by the investor in full.

6.3 Inputs by local partner

The local partner provides the location for cold storage building, job creation incentives for investors, and a cooperative network.

6.4 Inputs by investor

Funds for project implementation, market for product sale and obtaining of necessary building permits.

7. Has physical location for project implementation been identified

The location for cold storage building is anticipated in one of the youth halls existing in the rural local communities, which matches the capacities of the cold storage, or in a business zone.

8. Have the activities on project implementation already started


9. Project applicant and contact information

Address: Karadjordjeva no.18.
Phone: +387 53 411-500
Fax: +387 53 411-541
E-mail: nacelnikopstine@opstinateslic.com