The Global Marketplace Considerations

In this study, an inter-continental agricultural pellet supply chain is modeled, and the production cost and price of agricultural pellets are estimated and compared against the recent cost and price of wood pellets in the global marketplace. The inter-continental supply chain is verified and validated using an integration of an interactive mapping application and a simulation platform. The integrated model is applied to a case study in which agricultural pellets are produced in six locations in Canada and shipped and discharged at the three major ports in Western Europe. The cost of agricultural pellets in the six locations is estimated to be in the range of EUR 92–95/tonne (CAD 138–142/tonne), which is comparable with the recent cost of wood pellets produced in small-scale pellet plants (EUR 99–109/tonne). The average agricultural pellet price shipped from the six plants to the three ports in Western Europe is estimated to be in a range of EUR 183–204 (CAD 274–305/tonne), 29–42% more expensive that the average recent price of wood pellets (EUR 143/tonne) at the same ports. There are several potential areas in the agricultural pellet supply chains that can reduce the pellet production and distribution costs in the mid and long terms, making them affordable supplement to the existing wood pellet markets. Potential economic activities generated by the production of pellets in farm communities can be significant. The generated annual revenue in the biomass logistics system in all six locations is estimated to be about CAD 21.80 million. In addition, the logistics equipment fleet needs 176 local operators with a potential annual income of CAD 2.18 million.

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Does Stakeholder Pressure Matters in Adopting Sustainable Supply Chain Initiatives? Insights from Agro-Based Processing Industry

Sustainability ◽

10.3390/su13137278 ◽

2021 ◽

Vol 13 (13) ◽

pp. 7278

Author(s):

Tamoor Azam ◽

Songjiang Wang ◽

Muhammad Mohsin ◽

Muhammad Nazam ◽

Muhammad Hashim ◽

...

Keyword(s):

Supply Chain ◽

Food Processing ◽

Policy Implications ◽

Successful Implementation ◽

Sustainable Supply Chain ◽

Sustainable Business ◽

Global Marketplace ◽

Sustainable Food ◽

Business Goals ◽

Stakeholder Pressure

Over the past few years, sustainable supply chain initiatives (SSCIs) have grabbed attention in the domestic, as well as global, marketplace of the food sector. Nowadays, the success of the entire food supply chain depends on the prosperity of farms, local communities, trader processors, and agro-based industries. Despite its importance, food processing industries (FPIs) are encountering various hurdles in achieving sustainable business goals due to the sheer number of potential barriers. Due to this reason, stakeholders are continuously pressuring the management of FPIs to embrace sustainable food processing activities. In light of this, the present study aims to apply a hybrid fuzzy analytical hierarchy process (F-AHP) framework, based on fuzzy technique for order preference by similarity to the ideal solution (F-TOPSIS), for analyzing the barriers and prioritizing the possible pathways in adopting the SSCIs for the development of FPIs. Based on the extensive review of literature and panel consultation with experienced experts, a total of seven main barriers, forty-two sub barriers, and five possible pathways as strategic tools were finalized and ranked. An empirical case investigation of a Pakistani-based food processing company has been taken to check the practical application of the proposed framework along with sensitivity analysis. The findings of this study reveal that the lack of sustainable outsourcing factors were found as the top-ranked barrier in implementing SSCIs, and the possible pathway to overcome this barrier is the appropriate management of the procurement cycle. The major contribution of this study is to establish a barriers prioritization framework and suggest possible pathways to overcome these barriers for the successful implementation of SSCIs. Finally, the theoretical, managerial, and policy implications are provided as a way forward for the concerned stakeholders and policymakers.

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