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Green supplier selection in the agro-food industry with contract farming

An important contribution to the environmental impact of agro-food supply chains is related to the agricultural technology and practices used in the fields during raw material production. This problem can be framed from the point of view of the Focal Company (FC) as a raw material Green Supplier Selection Problem (GSSP). This paper describes an extension of the GSSP methodology that integrates life cycle assessment, environmental collaborations, and contract farming in order to gain social and environmental benefits. In this approach, risk and gains are shared by both parties, as well as information related to agricultural practices through which the FC can optimize global performance by deciding which suppliers to contract, capacity and which practices to use at each supplying field in order to optimize economic performance and environmental impact. The FC provides the knowledge and technology needed by the supplier to reach these objectives via a contract farming scheme. A case study is developed in order to illustrate and a step-by-step methodology is described. A multi-objective optimization strategy based on Genetic Algorithms linked to a MCDM approach to the solution selection step is proposed. Scenarios of optimization of the selection process are studied to demonstrate the potential improvement gains in performance.

The role of the Regional Cooperative Westerkwartier as a food chain agent in the regional food chain

Recent challenges such like climate, demographic, political, economy and market changes are the foundation for the establishment of the Regional Cooperative Westerkwartier (RCW) in the Northern Netherlands. This RCW is managing a vast range of regional programs and projects developed by multi-stakeholder groups within the region. These stakeholders are representatives of market, public administration, education, research and civil society. All the activities of the cooperative focus on strengthening the regional economy. One of the major programs is the development of a regional food chain (RFC) based on cooperation between small and medium sized enterprises and corporate purchasers. The cooperative is identifying its role within this RFC to develop this chain in an effective way. This article reflects the results of a literature study in the fields of green supply chain management and industrial symbiosis to understand the most important factors of chain development and enterprise symbiosis. Based on these results multiple in-depth interviews and a survey have been conducted. This results in a list of factors, ranked according to their importance for small and medium-sized enterprises. In the role of a RFC-agent the cooperative should focus on creating trust, achieving one overall goal and ensuring clear agreements within the RFC. Surprisingly, the factor “achieving a fair distribution of costs and benefits” throughout the chain is not as important as was expected to be. Based on these ranked factors the role of the RFC-agent has been clarified and an additional circular chain business model can be developed.

Building an aligned and committed value chain

Most food & agribusiness stakeholders (entrepreneurs in particular) agree that it is not only difficult to innovate new products and technology, but also to realize its true market potential. A lack of market and/or supply partnerships, i.e. a robust and committed value chain, is often cited as the reason for the failure to achieve this potential. The key objective of this research is to understand the necessary elements needed for building a committed value chain and to suggest an approach to realize them. Our research shows that partnerships which combine the four key elements of aligned objectives and incentives and shared responsibilities and information are most likely to realize a committed value chain. The research further provide guidelines to developing these elements and achieving committed chains in practice. Finally, we demonstrate the relevance of the suggested approach using two real-life business cases; the first one is a business success story with a committed value chain, while the other is a story of a failure due to the lack of a committed chain

Creating Sustainable Businesses by Reducing Food Waste

This study proposes a systematic value chain approach to helping businesses identify and eliminate inefficiencies. The authors have developed a robust framework, which food-sector entrepreneurs can use to increase profitability of an existing business or to create new profitable opportunities. The value chain approach provides win-win opportunities for players within the value chain. To test the robustness of the framework, the authors use food waste as an example of a critical inefficiency and apply it to two different food sector business cases, each operating in diverse conditions. Because the suggested framework addresses the core elements and parameters for the existence and competitiveness of a business, the model can be adapted to other sectors.

Towards a sustainable agro-logistics in developing countries

Analysis of banana value chain in Ethiopia

Banana is an important commercial fruit crop for smallholder farmers in Arba Minch, southern Ethiopia. However, its sector is experiencing many constraints and limited attention given to productivity and marketing. Therefore, this study was conducted to analyze the banana value chain in order to identify constraints on productivity and marketing, and possibilities of improvements towards a sustainable value chain in Arba Minch. Data were collected through a survey, key informants’ interviews, and focus group discussions. Different analytical and statistical tools were used for data analysis. Results describe actors, supporters, and influencers of the existing banana chain. The current banana chain has three different distribution channels in Arba Minch. The channel that connects with rural consumers has the highest value share for farmers while the channel that includes traveling traders has the lowest value share for farmers. The marketing cooperative channel has an intermediate value share for farmers in the chain. Poor agronomic practice, diseases, pests, and climate change were the major constraints for the banana yield while limited market information, lack of cold store and refrigerated trucks, poor post-harvest handling, lack of alternative markets, and weak capacity of cooperatives were the main constraints for banana marketing in Arba Minch. Economic, social and environmental indicators have a moderate sustainability performance within the Ethiopian context. The chain has an advantage in terms of profitability, employment, emission of air pollutants and constraints in terms of coordination, value share, profit margin, market diversity, product and market information, transportation, waste management, and safety and hygiene.