What is Cooling-as-a-Service?
Business Model
Cooling as a Service (CaaS) offers cooling users access to cold storage for a fixed fee, determined by the volume of stored food and storage duration. Cooling users make the fee payment directly to cold room operators upon crop withdrawal. In exchange for these payments, the cooling companies own, operate, and upkeep the cold room.
Key Stakeholders
- Cooling service providers: They offer cold room services to farmers or FPOs for a nominal fee. They own and manage the cold rooms, prioritizing clean energy like solar or biomass. Beyond storage providers may facilitate market access by linking sellers and buyers, reducing information gaps.
- Your VCCA supports smallholder farmers and marginal traders that grapple with limited land and resources and operate at modest scales, selling their produce on roadsides or local markets. Insufficient storage undermines their bargaining power, resulting in hurried sales and low incomes. Your VCCA offers them the option to place their produce in the cold room at affordable rates. Your VCCA supports smallholder farmers and marginal traders that grapple with limited land and resources and operate at modest scales, selling their produce on roadsides or local markets. Insufficient storage undermines their bargaining power, resulting in hurried sales and low incomes. Your VCCA offers them the option to place their produce in the cold room at affordable rates.
- Farmer Producer Organizations: FPOs unite farmers, offering end-to-end cultivation support. Under CaaS, FPOs can act as customers, operators, or leverage cold storage for better prices by purchasing members' produce, strengthening market linkages and farmers' economic viability.