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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
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
Introduction
Aspect Changing
Speed
Attempt
Population (Need) High
but Limited Control
Productivity of crops
High
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 !!
Existing Packaging and Transportation System being
major cause for the Postharvest loss-
At Farmer’s
Level
(transportation
from farmers’
yard to
assembly
market)
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
Packaging and Transportation of Cut
Flowers for Domestic Marketing
Wrapping with jute sack
Bamboo-mat boxes
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
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 bruise
the produces
•Throwing or dropping of packages, sudden starting
or stopping of vehicle, vibration of the vehicle,
speeding loaded vehicle on rough road cause
damage the produces
•Oversized containers, containers overfilled or
stacked too high or both, collapse of stacked
containers during transport deteriorate the shelf-life
and quality of the produce
Post-harvest Loss of Fruits and Vegetables (for the Year 2006-07)
Post-harvest Loss (%) Total
Crops
Production
(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
Suggested Best Practices for Appropriate
Packaging and Storage
1. Plastic Crate
A. Non-nesting Plastic Crates (Partly Introduced)
Bengal Model: BW – 402
B. Nesting Plastic Crates
C. Foldable Plastic Crates
Description
Use 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
Cost Benefit Analysis of Using Poly-sacks and Plastic
Crates in Sri Lanka (Contd…)
Description
Use 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
Cost Benefit Analysis of Using Poly-sacks and Plastic
Crates in Bangladesh
NatureofPackage
*Vegetablestobetransported(kg)
Purchasepriceperkg(Tk.)
CapacityofPackage(kg)
PriceperPackage(Tk.)
Packagingcost(Tk)
TransportationCost(Tk.)
TotalCostofPack+Trans(Tk.)
OverheadCostperkg
TotalOverheadcost(Tk.)
TotalOperationgCost(Tk.)
PHLoss(%)
VegObtainedafertranspor-tation(kg)
Salepriceperkg(Tk.)
TotalSaleprice(Tk.)
Totalprofit(Tk.)
Profitability(%)
BambooBasket
andSack
10400 10 80 70 9100 6500 15600 0.15 1560 121160 3
1008
8
18 172505 51345 42.4
Plastic
Crate
7000 10 18 5 1944 10000 11944 0.15 1050 82994 1 6930 20 131670 48676 58.7
2. Ice Packaging with Styrofoam Box
3. Passive Modified Atmosphere Packaging (PMAP)
PMAP with cling wrapping
PMAP with perforated polythine
4. Packaging of Fresh Cut (Minimally Processed) Fruits
and Vegetables
5. Ice Packaging of Cut Flower Using Insulated
Fiberboard Carton
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
7. Reinforced CFB Carton for Gladiolus and
Tuberose:
8. Gerbera Cups
9. Packaging of Rose
10. Introduction of Rose Cap
Scope for establishing
enterprise for
manufacturing the rose cap
11. Storage of Horticultural Produces at Zero
Energy Evaporative Cooler (IARI Model)
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/
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
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;
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 extensionists
on appropriate post-harvest technologies;
 Poor linkages between Chambers of Commerce,
industries, research institutions and extension
agencies.
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.
Thank You

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Horticultural Supply Chain Packaging and Transportation Problems

  • 1. 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
  • 2. 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
  • 3. Introduction Aspect Changing Speed Attempt Population (Need) High but Limited Control Productivity of crops High 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 !!
  • 4. Existing Packaging and Transportation System being major cause for the Postharvest loss- At Farmer’s Level (transportation from farmers’ yard to assembly market)
  • 5. 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
  • 6. Packaging and Transportation of Cut Flowers for Domestic Marketing Wrapping with jute sack Bamboo-mat boxes
  • 7. 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
  • 8. 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 bruise the produces •Throwing or dropping of packages, sudden starting or stopping of vehicle, vibration of the vehicle, speeding loaded vehicle on rough road cause damage the produces •Oversized containers, containers overfilled or stacked too high or both, collapse of stacked containers during transport deteriorate the shelf-life and quality of the produce
  • 9. Post-harvest Loss of Fruits and Vegetables (for the Year 2006-07) Post-harvest Loss (%) Total Crops Production (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
  • 10. Suggested Best Practices for Appropriate Packaging and Storage 1. Plastic Crate A. Non-nesting Plastic Crates (Partly Introduced) Bengal Model: BW – 402
  • 13. Description Use 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
  • 14. Cost Benefit Analysis of Using Poly-sacks and Plastic Crates in Sri Lanka (Contd…) Description Use 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
  • 15. Cost Benefit Analysis of Using Poly-sacks and Plastic Crates in Bangladesh NatureofPackage *Vegetablestobetransported(kg) Purchasepriceperkg(Tk.) CapacityofPackage(kg) PriceperPackage(Tk.) Packagingcost(Tk) TransportationCost(Tk.) TotalCostofPack+Trans(Tk.) OverheadCostperkg TotalOverheadcost(Tk.) TotalOperationgCost(Tk.) PHLoss(%) VegObtainedafertranspor-tation(kg) Salepriceperkg(Tk.) TotalSaleprice(Tk.) Totalprofit(Tk.) Profitability(%) BambooBasket andSack 10400 10 80 70 9100 6500 15600 0.15 1560 121160 3 1008 8 18 172505 51345 42.4 Plastic Crate 7000 10 18 5 1944 10000 11944 0.15 1050 82994 1 6930 20 131670 48676 58.7
  • 16. 2. Ice Packaging with Styrofoam Box
  • 17. 3. Passive Modified Atmosphere Packaging (PMAP) PMAP with cling wrapping PMAP with perforated polythine
  • 18. 4. Packaging of Fresh Cut (Minimally Processed) Fruits and Vegetables
  • 19. 5. Ice Packaging of Cut Flower Using Insulated Fiberboard Carton
  • 20. 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
  • 21. 7. Reinforced CFB Carton for Gladiolus and Tuberose: 8. Gerbera Cups
  • 23. 10. Introduction of Rose Cap Scope for establishing enterprise for manufacturing the rose cap
  • 24. 11. Storage of Horticultural Produces at Zero Energy Evaporative Cooler (IARI Model)
  • 25. 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/
  • 26. 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
  • 27. 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;
  • 28. 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 extensionists on appropriate post-harvest technologies;  Poor linkages between Chambers of Commerce, industries, research institutions and extension agencies.
  • 29. 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.