Maximising profit by waste reduction in postharvest Supply Chain of tomato

Abstract

Purpose The paper aims to analyse the postharvest Supply Chain (SC) of tomatoes to maximise profit by restructuring the modes of operation. Design/methodology/approach System Dynamics-based simulation of four scenarios depicting different operational modes of postharvest food SC was employed. Real-time of Tamil Nadu state, India was used to enact the scenarios using Vensim. Findings Results indicated that cold storage improved the profit of wholesalers by prolonging the shelf-life of commodities. Retailers and farmers gained more profit in the absence of wholesalers. Though the absence of middlemen reduces the transit time and prevents deterioration, the role of wholesalers, i.e. transporting the commodities to farther customers’ needs to be shouldered by other agents effectively to minimise losses. Research limitations/implications The accuracy of the results depend on the exactness of the data collected. The simulation findings, on the other hand, could be helpful in decision-making as these models portray the actual operational modes of postharvest SC. The suitability of each network structure depends on the capabilities of the agents, market scenario and demography. Implications based on discussions with stakeholders and in terms of establishing dedicated societies (cooperatives) have been provided. Originality/value Postharvest losses incurred for horticultural crops like tomatoes are significantly high. It is of much importance to India as agriculture contributes to 17% of the Gross Domestic Product (GDP) and India is the second-largest producer of tomatoes globally. The study would shed light on restructuring the network appropriately.