packaging and transportation problems and opportunities

30
Dr. Sreekanta Sheel B.Sc. Agril. Engg - with major in Food Technology M.Sc. (Agril. Engg) in Food Technology, Ph.D in Food Technology Logistics (Transportation & Storage) Expert Supply Chain Development Component, NATP Hortex Foundation Packaging and Transportation Problems and Opportunities in Horticultural Supply Chain

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Page 1: Packaging and Transportation Problems and Opportunities

Dr. Sreekanta SheelB.Sc. Agril. Engg - with major in Food Technology

M.Sc. (Agril. Engg) in Food Technology,

Ph.D in Food Technology

Logistics (Transportation & Storage) Expert

Supply Chain Development Component, NATP

Hortex Foundation

Packaging and Transportation

Problems and Opportunities

in Horticultural

Supply Chain

Page 2: Packaging and Transportation Problems and Opportunities

Outline of the Presentation

Introduction

Existing Packaging and Transportation System

Effect of Improper Packaging and Transportation

Post-harvest Loss of Fruits and Vegetables

Suggested Best Practices for Appropriate Packaging

and Storage

Constraints in Introduction of Improved Technology

on Packaging, Transportation and Storage

Recommendation

Conclusion

Page 3: Packaging and Transportation Problems and Opportunities

IntroductionAspect Changing

Speed

Attempt

Population (Need)High

but Limited Control

Productivity of cropsHigh

but Limited Success

Cultivable Land Very Low and Out of Control

Post-harvest Loss of

crops(Double tin compare to the

Developed Country)

Very Low

Scope for Intervene !

Hence, It is more important

to reduce post-harvest loss

than to increase productivity only !!

Page 4: Packaging and Transportation Problems and Opportunities

Existing Packaging and Transportation System being major cause for the Postharvest loss-

At Farmer’s Level (transportation from farmers’ yard to assembly market)

Page 5: Packaging and Transportation Problems and Opportunities

At Traders Level (transportation from assembly market to wholesale market)

Existing Packaging and Transportation System being major cause for the Postharvest loss!

An amount of 400-500 kg

Page 6: Packaging and Transportation Problems and Opportunities

Packaging and Transportation of Cut Flowers for Domestic MarketingWrapping with jute sack

Bamboo-mat boxes

Page 7: Packaging and Transportation Problems and Opportunities

Effect of Improper Packaging and Transportation of horticultural produces

Lack of aeration due to compression and poor

ventilation hinder removal of heat , carbon-di-

oxide and water and entrance of oxygen

Causes:

high heat development in the package,

the produces overripe or softens;

produce wilts and develops off-flavours;

decay develops rapidly; and consequently

the shelf-life reduces and the quality

deteriorates in the produces

Page 8: Packaging and Transportation Problems and Opportunities

Effect of Improper Packaging (Contd…)

•Exposure of packages to external heat, causes

deteriorations

•Exposure to rain or high humidity;

•Sharp objects of the packaging materials bruisethe produces

•Throwing or dropping of packages, sudden startingor stopping of vehicle, vibration of the vehicle,speeding loaded vehicle on rough road causedamage the produces

•Oversized containers, containers overfilled orstacked too high or both, collapse of stackedcontainers during transport deteriorate the shelf-lifeand quality of the produce

Page 9: Packaging and Transportation Problems and Opportunities

Post-harvest Loss of Fruits and Vegetables (for the Year 2006-07)

Post-harvest Loss (%) Total

CropsProduction

(MT)Producer Collector Wholesaler Retailer Total

PH loss

of Crops

(MT)

Price Per MT

(Tk in '000')

Total Price

(Tk in '000‘)

Mango (In Garden) 259120 2 5 22 4 33 85510 40 3420400

Pineapple (06-07) 238360 2 4 8 4 18 42905 25 1072625

Banana 1004520 2 4 8 6 20 200904 25 5022600

Papaya (In Garden) 33855 6 10 15 4 35 11849 25 296225

Lime (In Garden) 13835 4 8 14 2 28 3874 30 116220

Beans 82980 4 6 13 5 28 23234 20 464680

Carrot 9855 3 6 12 4 25 2464 15 36960

Cabbage 182685 4 7 9 5 25 45671 10 456710

Bitter gourd 34445 4 6 11 6 27 9300 20 186000

Tomato 136935 5 10 15 7 37 50666 15 759990

Okra 38715 3 10 13 8 34 13163 15 197445

Eggplant 110910 2 5 6 7 20 22182 12 266184

Chilies 153955 2 3 5 4 14 21554 50 1077700

Potatoes 5167000 3 4 12 6 25 1291750 10 12917500

Average % Loss 3.3 6.3 11.6 5.1 26.4

Total 7467170 1825026 26,29,1239

Page 10: Packaging and Transportation Problems and Opportunities

Suggested Best Practices for Appropriate Packaging and Storage

1. Plastic Crate

A. Non-nesting Plastic Crates (Partly Introduced)

Bengal Model: BW – 402

Page 11: Packaging and Transportation Problems and Opportunities

B. Nesting Plastic Crates

Page 12: Packaging and Transportation Problems and Opportunities

C. Foldable Plastic Crates

Page 13: Packaging and Transportation Problems and Opportunities

DescriptionUse of poly

sacks

Use of plastic

crates

1) Capacity per truck load

Number of units transported 80 bags 125 crates

Average weight of vegetables per unit 50 kg 20 kg

Total capacity 4,000 kg 2,500 kg

2) Unit price of a package (LKR)

30.00 per

bag

527.00 per

crate

3) Lifespan of package 2 journeys 240 journeys

4) Farm-gate purchasing price of

vegetables (LKR)

25.00 per

kg 27.00 per kg

5) Transport cost (LKR)

Keppettipola to central market 2,500.00 2,500.00

Return journey - 625.00*

6) Handling charges (LKR) 6 6

7) Selling price of vegetables (LKR) 30 37

Cost Benefit Analysis of Using Poly-sacks and Plastic Crates in Sri Lanka

Page 14: Packaging and Transportation Problems and Opportunities

Cost Benefit Analysis of Using Poly-sacks and Plastic Crates in Sri Lanka (Contd…)

DescriptionUse of poly

sacks

Use of plastic

crates

Capital cost:

1) Total cost of packages (LKR) 2,400.00 65,876.00

Fixed cost:

1) Depreciation of packages (LKR) 1,200.00 274.00

Description

Use of poly

sacks

Use of plastic

crates

Variable Cost:

1) Total transport cost (LKR) 2,500.00 3,125.00

2) Loading and unloading cost (LKR) 960.00 1,500.00

3) Cost of vegetables (LKR) 100,000.00 67,500.00

Total cost (LKR) 104,660.00 72,399.00

Total revenue (LKR) 120,000.00 92,500.00

Net profit (LKR) 15,340.00 20,100.00

Page 15: Packaging and Transportation Problems and Opportunities

Cost Benefit Analysis of Using Poly-sacks and Plastic Crates in Bangladesh

Nat

ure

of

Pac

kag

e

*Veg

etab

les

to b

e tr

ansp

ort

ed (

kg)

Pu

rch

ase

pri

ce p

er k

g (

Tk.

)

Cap

acit

y o

f P

acka

ge

(kg

)

Pri

ce p

er P

acka

ge

(Tk.

)

Pac

kag

ing

co

st (

Tk)

Tran

spo

rta

tio

nC

ost

(T

k.)

Tota

l Co

st o

f P

ack+

Tra

ns

(Tk.

)

Ove

rhea

d C

ost

per

kg

Tota

l Ove

rhea

d c

ost

(T

k.)

Tota

l Op

erat

ion

gC

ost

(T

k.)

PH

Lo

ss (

%)

Veg

Ob

tain

ed a

fer

tran

spo

r-ta

tio

n(k

g)

Sal

e p

rice

per

kg

(T

k.)

Tota

l Sal

e p

rice

(T

k.)

Tota

l pro

fit

(Tk.

)

Pro

fita

bili

ty (

%)

Bam

bo

o B

aske

t

and

Sac

k

10400 10 80 70 9100 6500 15600 0.15 1560 121160 31008

818 172505 51345 42.4

Pla

stic

Cra

te

7000 10 18 5 1944 10000 11944 0.15 1050 82994 1 6930 20 131670 48676 58.7

Page 16: Packaging and Transportation Problems and Opportunities

2. Ice Packaging with Styrofoam Box

Page 17: Packaging and Transportation Problems and Opportunities

3. Passive Modified Atmosphere Packaging (PMAP)

PMAP with cling wrapping

PMAP with perforated polythine

Page 18: Packaging and Transportation Problems and Opportunities

4. Packaging of Fresh Cut (Minimally Processed) Fruits and Vegetables

Page 19: Packaging and Transportation Problems and Opportunities

5. Ice Packaging of Cut Flower Using Insulated Fiberboard Carton

Page 20: Packaging and Transportation Problems and Opportunities

6. Cut Flower Packaging in Plastic Crates

• Bengal Polymer Wares Ltd. is manufacturing plastic crates

(Model: BW – 407) which can be suitably used as transport

package for cut flower.

•This crate can be also used in the other product transportation,

storage and handling.

Bengal Crate: Model: BW – 407

Page 21: Packaging and Transportation Problems and Opportunities

7. Reinforced CFB Carton for Gladiolus and Tuberose:

8. Gerbera Cups

Page 22: Packaging and Transportation Problems and Opportunities

9. Packaging of Rose

Page 23: Packaging and Transportation Problems and Opportunities

10. Introduction of Rose Cap

Scope for establishing enterprise for manufacturing the rose cap

Page 24: Packaging and Transportation Problems and Opportunities

11. Storage of Horticultural Produces at Zero Energy Evaporative Cooler (IARI Model)

Page 25: Packaging and Transportation Problems and Opportunities

12. CoolBot technology for small scale cold rooms A small-scale option of cold room

using a modified room air

conditioner (developed by Boyett

and Rohrbach in 1993.)

The cost of installation of a

CoolBot technology for a 20 m2

small scale cold rooms having

capacity of 6 MT pptato is around

US$ 5000.00 only.

The coolbot technology utilizes a

typical window type air

conditioning unit to create a cold

room capable of 0oC temperatures.

Inside the Coolbot cold room

Source: WFLO Grant Final Report,2010

Further Information: http://www.storeitcold.com/

Page 26: Packaging and Transportation Problems and Opportunities

Costs and Benefits of the Small-scale Cold room with CoolBot technology in India for Potato Storage

COSTS

20m2 Cold room with air conditioner & CoolBot (6MT capacity) $4300

Capital costs (initial investment assuming no labor cost) $4300

Electricity for initial cooling ($85 per MT, $0.09/kWh) $ 510

Electricity $18 per month for 3 months, $0.09/kWh at 7 C $ 54

World Food Logistics Organization Grant Number 52198 257

Recurring costs

$564

Relative total cost $ 4864*

EXPECTED BENEFITS

% losses 30% 5%*

Amount for sale 4200 kg 5700 kg

Market value/kg $0.10 $0.40

Total market value of one load $420 $ 2280

Market value – recurring costs $420 $ 2280- $564= $1716

Relative profit for one load stored for 4 months + $ 1296

Page 27: Packaging and Transportation Problems and Opportunities

Constraints in Introduction of Improved Technology on Packaging, Transportation and Storage

Inadequacy of extension activity of appropriate post-harvest technologies for fruits and vegetables;

Technical manpower, research and development activities are deficient and inadequate;

Insufficiency of training and demonstration activities and centers for fostering entrepreneurship;

Inadequacy of credit facilities at reasonable interest rates, for growers and traders;

Inadequacy of transport facilities create serious bottlenecks in the marketing of fruits, vegetables and cut flowers;

Page 28: Packaging and Transportation Problems and Opportunities

Constraints (Contd…)

Poor road and market infrastructure coupled with lack of technical know-how also result in high post-harvest losses;

Absence of quality consciousness among consumers, leads to preference for poor quality and unsafe produce which is generally less costly;

Little sharing of information among farmers, traders, processors, researchers and extensionistson appropriate post-harvest technologies;

Poor linkages between Chambers of Commerce, industries, research institutions and extension agencies.

Page 29: Packaging and Transportation Problems and Opportunities

Recommendation Introduce the best practices on appropriate packaging and storage

technologies by the concerned projects and line agencies

Subsidy should be provided in manufacturing, promotion, introduction and

extension of plastic crates to save the valuable agril. produces as that is being

provided in cases of fertilizer and diesel in production of the commodities

Appropriate national policies to be designed ensuring use of improved package to

address these issues if post-harvest losses are to be reduced .

A platform of networks should be created among growers, local traders ,

wholesalers, retailers, package manufacturer and suppliers and technology

providers

Financial and technical support for the development of packaging industries is

required particularly subsidy on plastic granule.

Initiate and coordinate awareness and training programs for producers and stake

holders on packaging & transportation and reducing post-harvest losses

Finally every step of the supply chain should be controlled. Cooperation among

producers, collectors, traders, transporters, retailers and government are the key

to achieving good management in post-harvest loss reduction.

Page 30: Packaging and Transportation Problems and Opportunities

Thank You