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DEVELOPMENT OF RISK

ASSESSMENT MODEL FOR


FARMERS IN TOMATO
SUPPLY CHAIN
P.Malliga, R. Gowri, R. Kala
Department of Industrial
Engineering,
College of Engineering,
Guindy

Introduction

Edible Red Berry


Solanum lycopersicon
Shrub - growth upto 3 20 height
China, India and USA are ranked 1st, 2nd, and 3rd in
tomato consumption
China, USA and India are ranked 1st ,2nd and 3rd in
tomato cultivation
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India States and Union


Territories
Tomato
Production
India and
TamilNadu

Ta
m
ilN

ad

Madhya
Pradesh

Bihar

We
s
Ben t
ga l

Ut
Pr tar
ad
es
h

11th in Area
9th in Vegetable
Production
15th in Tomato
Production
23rd in Tomato

4th in Area
2nd in
Tomato
Production
13th in Area
3rd in
Tomato
Production
14th in Area
1st in
Tomato
Production
2nd in Area
4th in
Tomato
Production

(2,438,000 ha;
50589000 ton and
20.75 Productivity which is
lower than most crops
cultivated)

Objective of study
To identify various issues faced by farmers
involved in tomato supply chain.
To classify and analyze the identified issues
Develop a mitigation strategy for selective issues.

Methodology
Literature study

Interaction with
Farmers

Identification of issues in Tomato


cultivation
Cluster and Rank the issues

Select the issues and identify the causes


Develop a mitigation strategy for the
issues

Data Collection

Observation
Land Use for Tomato
Cultivation
Total
land
(Ti)
(Acres)
0.500
1.000
1.500
1.750
2.000
2.400
2.500
2.700
3.000
3.500
4.000
4.500
5.000
5.500
7.000
8.000
10.000

Number
of
farmers
(Ni)
2
6
1
1
11
1
2
1
3
1
7
1
2
1
1
3
3

Average of
Land for
Tomato (Ai)

% of land
for tomato
(Pi)

0.250
0.417
0.500
1.750
0.500
0.500
0.500
0.750
0.500
1.500
0.500
0.500
0.750
0.500
0.500
0.400
1.833

50.000
41.667
33.333
100.000
25.000
20.833
10.000
27.778
16.667
42.857
12.500
11.111
15.000
9.091
7.143
5.000
18.333

Farmers cultivated tomatoes in small


spread of area.
Average land used for Tomato
cultivation:
Pi = Ai / Ti ---------- (1)
Ai = Li / Ni ---------- (2)
Where:
Pi - Percentage of land used for tomato
cultivation
Ai - Average land used for tomato
cultivation in Category i.
Ti- Total land owned by farmers in
Category i.
Ni - Number of farmers in the Category
i.
Li - Sum of land used for tomato 7
cultivation by individual farmer of the

Tomato Supply Chain


Issues
Risks Identified

Rank Order Clustering


District Vs Issues
Districts considered
for Study
1.Dindigul -D
2.Erode - E
3.Virudhunagar -V
4.Thanjavur-Ta
5.Trichy-Ty
6.Tirunelveli-Tvi
7.Thiruvavur - Tvr
8.Salem - Sa

Issues Considered
for the study:
1.Labor Demand
2.Price Fluctuation
3.Low Returns
4.Insect / Pest
5.Weather
6.Water Scarcity
7.High Labor Cost
8.Machineries

Rank Order Clustering


- Continued
Farmers
\Issues
E31
E29
K10
E30
V25
E28
E32
V26
V23
V27
T15
T12
T11
V20
V21

1
27

2
26

3
25

4
24

1
1
1
1
1
1

1
1
1
1

1
1
1

1
1

5
23

6
22

7 8
21 20
1

Iteration 1:
Step 1: Assign binary weight for each
row
(Wi)
and
column
(Wj)and
determine decimal weight.
Wi = m p=1 bip 2m-p

1
1

1
1
1
1

1
1
1
1
1

1
1

---------- (3)

where,
m - is the total number of columns
i - number of row
bip - 0 or 1 depending upon the
matrix.
Step 2: Rearrange the rows according
to
descending order of decimal
weights of Wi.
Step 3: Repeat steps 1 and 2 for each
10
column.
Step 4: Repeat above steps until there

Rank Order Clustering


- Continued
Final Iteration

E3
1
E2
9
K1
0
E3
0
V2
5
T1
1
V2
6
V2
7
E2
8
E3
2
V2
3
T1
5
T1
2
V2
0
V2

Rank of Issues

RowSu
m

480

464

448

384

256

32

128

64

256

232

100

Issues

Initial
Seque
nce

Final
Priorit
y

Labor
Demand

Price
Fluctuation

Lower
returns

Pest

Machineries

Water
Scarcity

33

High Labor
cost

40

Weather

8 11

Fish Bone Analysis for


Risk in Tomato Supply
Chain
Monetary
Crop
Milieu
High interest loans

Plant life cycle

Expensive machineries
Higher labor cost
Inflation

Soil Fertility
Pest Issues
Poor Seed Quality

Water Scarcity
Natural Calamities
Weather Conditions

Excessive Fertility

Transportation Issues
Demand Fluctuation
Price Variation

Inadequate training
Labor Shortage

Increased
Increas
loss in
ed Loss
Tomato
for
SCM
Farmer
s in TSC

Lack of Knowledge

Cold storage

Miscellaneou
s

Man Power
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Affinity Diagram
INCREASED LOSS FOR FARMERS
IN TOMATO SUPPLY CHAIN
AVOIDABLE
CAUSES
Lack of Knowledge
Lack of Training
Over use of Fertilizers
Soil fertility
Plant life cycle
Poor quality seeds
Pest problems

UNAVOIDABLE
CAUSES
Weather
Natural calamities
Inflation
Lack of demand
Price fluctuation
Lack of nutrients in water

MANAGABLE
CAUSES
Water scarcity
Machineries
High interest for loans
Lack of cold storage
High labor cost
Transportation problems
Lack of man power

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Results and discussion


Risk Mitigation
In a view of mitigating the farmers issues in tomato
supply chain, a conceptual mitigation model was
strategized

FArmers and COnsumers Only (FACOO) model


The FACOO model has 4 modules:
1. Supply chain module
2. Training and Awareness module
3. Quality module
4. Transportation and Logistics module

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FACOO MODEL
Farmer Data Base

Farmer

Weeding
Germination
Land Preparation Harvesting
Post harvest
Planting
techniques

FACOO
1. Supply Chain
Module

Farmers and Vendors


details
Decisions related to pricing
Setting up of rules for
Modules
Monitor the success of each
Fertilizing
module
Seed Selection

2. Training
Module
3. Quality Module

4. Transportation
And Logistics Module

Vendors

Provision of Seeds
Fertilizers and Pesticides
Produce Quality
Produce Pricing
Post Harvest Quality
Vendor and Farmers analysis
Continuous Monitoring
Location for Facility
Produce Collection Points
Time of collection
All transportation and vehicle
related decisions
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Vendors Data Base

FACOO Model
1. Supply chain module
Farmers register with the organization by providing
their personally identifiable, farm, harvest, amenities
related information
Vendors register with the organization by providing
their personally identifiable, facility, accessibility,
location and available amenities related information.
Selection of pricing model
Fixed price model
Fp=((Inf x Br)+ Br)
---------- (4)
Where;
Fp Fixed Price
Inf Inflation
Br Base Rate
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FACOO Model
Continued
2. Training and Awareness module :
Selection of seeds variety based on soil
characteristics
Land preparation
Agriculture and post harvesting technology
Natural pest control and optimal use of fertilizers
3. Quality Module involves the provision of
Seeds
Soil Check
Organic manure / fertilizer
Check produce condition and quality
4. Transportation module involves:
Selection of Appropriate transportation methods
Collection points at selective location
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Discussion
On studying the survey data, it was observed that

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Discussion

st Harvesting Technique (PHT) Knowledge

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Utilization of Uzhavar
Sandhai

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Conclusion
Low tomato productivity in TamilNadu was observed
Literature shows lack of storage facilities ,
transportation, labor shortage, high labor cost, nature
related issues, lack of knowledge and education as
major issues.
Farmers responses indicates that lack of proper
training and exposure to new techniques of cultivation
and post harvesting techniques as areas of
improvement.
Years of Experience and level of education of farmers
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Conclusion
The conceptual model of FArmers and COnsumers
Only aims at helping farmers manage issues in TSC
Implementation of this model would create a close
network of agriculture experts, farmers and Goverment.
Hence emphasis on coordination and cooperation is
important
Note:
This FACOO model is proposed as a mitigation
strategy and needs futuristic work for implementation
and validation.
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