scholarly journals Sustainability Implications of the Incorporation of a Biogas Trapping System into a Conventional Crude Palm Oil Supply Chain

2019 ◽  
Vol 11 (3) ◽  
pp. 792 ◽  
Author(s):  
Chye Lim ◽  
Wahidul K. Biswas
Keyword(s):  
Growth Rate ◽  
Supply Chain ◽  
Supply Chains ◽  
Palm Oil ◽  
Energy Output ◽  
Crude Palm Oil ◽  
Improvement Strategy ◽  
Sustainability Performance ◽  
Oil Supply ◽  
Palm Oil Mill

This paper presents the sustainability implications of installing biogas trapping systems in palm oil mills of a crude palm oil production supply chains in Malaysia. The study evaluates the impact of this mitigation strategy on the existing supply chains published by Lim and Biswas. The experience of a local palm oil mill installed with the KUBOTA biogas trapping system was incorporated into a typical 60 metric tonne per hour palm oil mill for effluent treatment. This allowed us to assess the changes in sustainability performance of the whole crude palm oil supply chain using the Palm Oil Sustainability Assessment (POSA) framework. Installing the biogas trapping system increased waste recycling and reuse percentage of the mill from 81.81% to 99.99% and the energy ratio (energy output/fossil fuel and biomass energy input) from 2.45 to 2.56; and reduced the Greenhouse Gas emission of the supply chain from 0.814 tonne CO2eq to 0.196 tonne CO2eq per tonne of Crude Palm Oil. This system could also potentially increase the mill’s annual revenue by 2.3%, while sacrificing the sustainability performance of other economic indicators (i.e., a further 3% negative deviation of actual growth rate from sustainable growth rate). Overall, sustainability score of the supply chain improved from 3.47/5 to 3.59/5 on the 5-level-Likert-scale due to environmental improvement strategy consideration. Finally, this paper shows that the POSA framework is capable of capturing changes in the sustainability performance of triple bottom line indicators associated with the use or incorporation of any improvement strategy in the crude palm oil supply chain.

scholarly journals Analysis of Crude Palm Oil Supply Chain using Food Supply Chain Network (FSCN): A Case Study

2020 ◽  
Vol 1003 ◽  
pp. 012036
Author(s):  
Nazaruddin Matondang ◽  
Juliza Hidayati ◽  
Buchari ◽  
Erik Permana Arifin ◽  
Jeffrey Panama
Keyword(s):  
Supply Chain ◽  
Palm Oil ◽  
Food Supply ◽  
Supply Chain Network ◽  
Crude Palm Oil ◽  
Food Supply Chain ◽  
Oil Supply

Ensuring the Relevance of Independent Smallholder Farmers (ISHFs) Through Sustainable Sourcing Practices

2020 ◽  
pp. 219-237
Author(s):  
Muhilan Ratnam
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Palm Oil ◽  
Smallholder Farmers ◽  
Palm Kernel ◽  
Collaborative Approach ◽  
Oil Supply ◽  
Industry Collaboration ◽  
Sustainability Initiatives ◽  
Key Aspects

Malaysia and Indonesia have been the main sources of supply for palm oil (PO), palm kernel oil (PKO), and other palm-related derivatives for most multi-national companies (MNCs). However, deforestation, new legislation in Europe, and stakeholder expectations have posed significant challenges to this industry. In response to these challenges, companies are looking at driving key sustainability initiatives in palm oil supply chains while remaining beneficial to the farmers. This chapter discusses the findings of a collaborative research project conducted through active academic-industry collaboration in South East Asia and shares an approach to identify and incorporate traceability within the supply chain. Critically, it also aims to provide a framework for both academicians and practitioners towards developing a collaborative approach of driving sustainability goals in difficult to measure parts of the supply chain. Importantly, this work also highlights the key aspects of implementing sustainability practices in the upstream palm oil supply chains, which are often ignored.

Value–Supply Chain Analysis (VSCA) of crude palm oil production in Brazil, focusing on economic, environmental and social sustainability

2019 ◽  
Vol 17 ◽  
pp. 161-175 ◽  
Author(s):  
Mohan Munasinghe ◽  
Priyangi Jayasinghe ◽  
Yvani Deraniyagala ◽  
Valente José Matlaba ◽  
Jorge Filipe dos Santos ◽  
...  
Keyword(s):  
Supply Chain ◽  
Palm Oil ◽  
Social Sustainability ◽  
Oil Production ◽  
Crude Palm Oil ◽  
Chain Analysis ◽  
Supply Chain Analysis

scholarly journals Formulasi Nilai Tambah pada Rantai Pasok Minyak Sawit

2016 ◽  
Vol 13 (1) ◽  
pp. 576
Author(s):  
Syarif Hidayat ◽  
Nunung Nurhasanah ◽  
Rizki Ayuning Prasongko
Keyword(s):  
Supply Chain ◽  
Palm Oil ◽  
Smallholder Farmers ◽  
Value Added ◽  
Added Value ◽  
Stakeholder Dialogue ◽  
Fresh Fruit Bunch ◽  
Oil Supply ◽  
Fair Distribution ◽  
Technology Level

In palm oil supply chain (POSC) the smallholder farmers sell their fresh fruit bunch (FFB) to Palm Oil Mills through traders. Palm Oil Mills convert the FFB into crude palm oil (CPO). CPO is sold to the refinery, who converts CPO into frying oil and sends the product to the distributors. The distributors subsequently sell them to the consumers. Each member of the POSC will try to optimize its added value. The aim of this paper is to develop an added value formulation as a function of risk, investment and technology levels of each of the POSC member. To facilitate fair distribution of rewards a concept of added value utility based on rsk, investment and technology level was introduced. To optimize the added value distribution between the members the concept of stakeholder dialogue was used. The selling prices were negotiated between the actors until each reached a satisfactory value, which was ruled by the levels of optimum added value utility. This research is important because the developed model can facilitate a better formula to calculate the fair distribution of added values, therefore ensure its sustainability and improve the total supply chain added value.Keywords:Utility, Value Added, Palm Oil Supply Chain, Exponential FunctionAbstrakPada suatu rantai pasok agroindustri minyak sawit (RPMS), petani menjual tandan buah segar (TBS) ke pabrik CPO melalui pedagang/pemasok. Pabrik CPO merubah TBS menjadi CPO. CPO dijual ke refinery (pabrik minyak goreng), yang merubah CPO menjadi minyak goreng, dan menjualnya melalui distributor kepada para konsumen. Setiap anggota RPMS akan berusaha untuk mengoptimumkan nilai tambahnya masing-masing. Tujuan penulisan makalah ini adalah menyusun formula perhitungan nilai tambah RPMS yang dipengaruhi oleh tingkat risiko, tingkat investasi dan tingkat teknologi yang terkait dengan masingmasing pelaku rantai pasok. Untuk mengusahakan distribusi yang adil dari imbalan maka digunakan pendekatan stakeholder dialogue. Harga jual dinegosiasikan diantara para pelaku RPMS sampai didapat suatu nilai yang memuaskan semua pihak, yang ditentukan berdasarkan utilitas nilai tambah yang optimum. Penelitian ini penting karena model yang dikembangkan dapat memfasilitasi formula yang lebih baik untuk menghitung distribusi nillia tambah yang adil, sehingga akan dicapai keberlangsungan usaha dan meningkatnya nilai tambah total dari RPMS.Kata kunci: Utilitas, Nilai Tambah, Rantai Pasok Minyak Sawit, Fungsi Eksponensial.

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