Agrilogistics losses bu Buck Consultants International
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Agri-logistics losses of five crops Prepared by: Dr. Adel Sabri, Entrust DMC Mr. Kamel Salem Dr. Omar Abdin, Entrust DMC Prepared in the Framework of the Agri-Logistics Forum Supervised by : Buck Consultants International Sponsored by : Ministry of Economic Affairs of the Netherlands Conducted by : Entrust Development & Management Consultants - Egypt
Transcript of Agrilogistics losses bu Buck Consultants International
Agri-logistics losses of five crops
Prepared by:
Dr. Adel Sabri, Entrust DMC
Mr. Kamel Salem
Dr. Omar Abdin, Entrust DMC
Prepared in the Framework of the Agri-Logistics Forum
Supervised by : Buck Consultants International
Sponsored by : Ministry of Economic Affairs of the Netherlands
Conducted by : Entrust Development & Management Consultants - Egypt
Contents
1 Objectives
2 Scope and Findings
Green Beans
Grapes
Capsicum
Tomatoes
Onions
3 Overview
Agri-logistics Losses and the effects on the economy and
food security
Losses Assessment per stage of operation across the 5
crops
Type of agri-logistics loss
4 Identified drivers and envisaged solutions Buck Consultants International, 2014 1
1 Objectives
Buck Consultants International, 2014 2
Estimate the magnitude of agricultural losses due to agri-
logistics practices of 5 different products: Green Beans,
Grapes, Capsicum, Tomatoes and Onions
Assessing the financial effects of these losses on a country
level
Assessing the effects of these losses from a food security
perspective
Identifying the drivers of inefficiencies
Recommending possible interventions to decrease agri-
logistics losses
2 Scope and findings
Agri-logistics losses occur on the following
levels:
Product Handling
Transport and Shipping
Processing and Pack-houses and Storage
Buck Consultants International, 2014 3
Most of the losses occur on farm and local market levels amounting to 12%
due to sub-optimal handling and transport from farm to pack-house till
reaching local market
Export market losses amount to 3% result of shipping
Total losses are close to 30,000 MT, worth 10 million €, having enough caloric
value offering energy to 15,000 people annually
Green Beans
Description
Agro-logistics Losses Stages in the Supply Chain
TotalOn Farm Local Market Export Market
Loss Percent 9% 3% 3% 15%
Qty Produced (MT) 251,279 193,496 35,168
Qty Lost (MT) 22,615 5,805 1,055 29,475
Value per Mt (EGP) 3,000 3,000 10,264
Value Lost (EGP EGP 67,845,330 EGP 17,414,630 EGP 11,209,122 EGP 96,469,082
Value Lost (EUR) 6,994,364 1,795,323 1,155,580 9,945,266
Savings for every 1% reduction in losses
(EUR)
777,152 598,441 385,193 663,018
Energy Per Mt (Kcal) 330,000 330,000 330,000
Energy Lost (Kcal) 7,462,986,300 1,915,609,311 - 9,378,595,611
No of People Per Annum Missing of Food 11,846 3,041 - 14,887
Buck Consultants International, 2014 4
Most of the losses occur on farm and local market levels amounting to 19% due
to sub-optimal handling and transport from farm to pack-house till reaching local
market
Export market losses are 5% resulting from shipping
Total losses close to 254,000 MT, worth 110 million €, having enough caloric
value offering energy to 270K people annually
Buck Consultants International, 2014 5
Grapes
Description
Agro-logistics Losses Stages in the Supply Chain
TotalOn Farm Local Market Export Market
Loss Percent 15% 4% 5% 24%
Qty Produced (MT) 1,378,815 1,094,264 77,729
Qty Lost (MT) 206,822 43,771 3,886 254,479
Value per Mt (EGP) 4,000 4,000 16,233
Value Lost (EGP EGP 827,289,000 EGP 175,082,200 EGP 63,089,345 EGP 1,065,460,545
Value Lost (EUR) 85,287,526 18,049,711 6,504,056 109,841,293
Savings for every 1% reduction in
losses (EUR)
5,685,835 4,512,428 1,300,811 4,576,721
Serving Size (g) 250 250 250 310,000
No of serving lost 827,289,000 175,082,200 15,545,800 1,017,917,000
Energy Per Mt (Kcal) 680,000 680,000 680,000
Energy Lost (Kcal) 140,639,130,000 29,763,974,000 - 170,403,104,000
No of People Per Annum Missing of
Food
223,237 47,244 - 270,481
Capsium
Description
Agro-logistics Losses Stages in the Supply Chain
TotalOn Farm Local Market Export Market
Loss Percent 8% 4% 3% 15%
Qty Produced (MT) 59,330 52,495 2,089
Qty Lost (MT) 4,746 2,100 63 6,909
Value per Mt (EGP) 4,000 4,000 8,995
Value Lost (EGP EGP 18,985,600 EGP 8,399,136 EGP 563,743 EGP 27,948,479
Value Lost (EUR) 1,957,278 865,890 58,118 2,881,286
Saving for every 1% reduction in losses
(EUR)
244,660 216,473 19,373 192,086
Serving Size (g) 250 250 250 310,000
No of serving lost 18,985,600 8,399,136 250,680 27,635,416
Energy Per Mt (kcal) 190,000 190,000
Energy Lost (Kcal) 901,816,000 398,958,960 - 1,300,774,960
No of People Per Annum Missing of
Food
1,431 633 - 2,065
Buck Consultants International, 2014 6
Most of the losses occur on farm and local market levels amounting to 12%
due to inefficiencies in handling and transport from farm to pack-house till
reaching local market
Export market losses are 3% and are the result of shipping
Total losses are close to 7,000 MT, worth 2.8 million €, having enough caloric
value offering energy to 2K people annually
Buck Consultants International, 2014 7
Most of the losses occur on farm and local market levels amounting to 25% due
to inefficient handling and transport from farm to pack-house till reaching local
market
Export market losses are 8% and result from shipping
Total losses are close to 2million MT, worth 127 million €, having enough caloric
value offering energy to 500K people annually
Tomatoes
Description
Agro-logistics Losses Stages in the Supply Chain
TotalOn Farm Local Market Export Market
Loss Percent 10% 15% 8% 33%
Qty Produced (MT) 8,625,219 7,718,782 43,915
Qty Lost (MT) 862,522 1,157,817 3,513 2,023,852
Value per Mt (EGP) 600.00 600 6,719
Value Lost (EGP EGP 517,513,140 EGP 694,690,389 EGP 23,604,192 EGP 1,235,807,721
Value Lost (EUR) 53,351,870 71,617,566 2,433,422 127,402,858
Savings for every 1% reduction in
losses (EUR)
5,335,187 4,774,504 304,178 3,860,693
Serving Size (g) 250 250 250 310,000
No of servings lost 3,450,087,600 4,631,269,260 14,052,800 8,095,409,660
Energy Per Mt (kcal) 170,000 170,000 170,000
Energy Lost (Kcal) 146,628,723,000 196,828,943,550 - 343,457,666,550
No of People Per Annum Missing of
Food
232,744 312,427 - 545,171
Onions
DescriptionAgro-logistics Losses Stages in the Supply Chain
TotalOn Farm Local Market Export Market
Loss Percent 6% 1% 1% 8%
Qty Produced (MT) 2,024,881 1,545,431 3,57,957
Qty Lost (MT) 121,493 15.454 3,580 140,527
Value per Mt (EGP) 1,000.00 1,000 4,068
Value Lost (EGP EGP 121,492,860 EGP 15,454,311 EGP 14,561,408 EGP 151,508,580
Value Lost (EUR) 12,525,037 1,593,228 1,501,176 15,619,441
Savings for every 1% reduction in
losses (EUR)
2,087,506 1,593,228 1,501,176 1,952,430
Energy Per Mt (kcal) 310,000 310,000 310,000
Energy Lost (Kcal) 37,662,786,600 4,790,836,534 - 42,453,623,134
No of People Per Annum Missing of
Food
59,782 7,605 - 67,387
Buck Consultants International, 2014 8
Most of the losses occur on farm and local market levels amounting to 7% due
to sub-optimal handling and transport from farm to pack-house till reaching
local market
Export market losses are 1%
Total losses are close to 140K MT, worth EUR 15 million, having enough caloric
value offering energy to 67K people annually
3 Overview
Buck Consultants International, 2014 9
Agri-logistics Losses and the effects on the economy and
food security
Assessment of losses per stage of operation across the 5
crops
Type of agri-logistics Loss
Agri-logistics losses and the effects on
the economy and food security
Buck Consultants International, 2014 10
The study has shown that the average losses across the five crops amount to
19%
These losses would amount to 2.4 million MT valued at EUR 265 million
The caloric value lost from these crops is enough to feed close to 900,000
people annually
Description1 Green Beans Grapes Capsicum Tomatoes Onions Total
Agro logistics loss
percent
15% 24% 15% 33% 8% 19%
Total Production
(MT)
251,279 1,378,815 59,330 8,625,219 2,024,881 12,339,524
Qty Lost (MT) 29,475 254,479 6,909 2,023,852 140,527 2,455,242
Value Lost (EUR 9,945,266 109,841,293 2,881,286 127,402,858 15,619,441 265,690,145
Savings for every
1% reduction in
losses (EUR)
663,018 4,576,721 192,086 3,860,693 1,952,430 11,244,947
Energy Lost in
Egypt (Kcal)
9,378,595,611 170,403,104,000 1,300,774,960 343,457,666,550 42,453,623,134 566,993,764,255
Food Opportunity
Lost in Egypt Per
Year (Persons)
14,887 270,481 2,065 545,171 67,387 899,990
Agri-logistics losses and the effects on
the economy and food security
Buck Consultants International, 2014 11
The study has shown that the average losses across the five crops amount to
19%
These losses would amount to 2.4 million MT valued at EUR 265 million
The caloric value lost from these crops is enough to feed close to 900,000
people annually
Description1 Green Beans Grapes Capsicum Tomatoes Onions Total
Agro logistics loss
percent
15% 24% 15% 33% 8% 19%
Total Production
(MT)
251,279 1,378,815 59,330 8,625,219 2,024,881 12,339,524
Qty Lost (MT) 29,475 254,479 6,909 2,023,852 140,527 2,455,242
Value Lost (EUR 9,945,266 109,841,293 2,881,286 127,402,858 15,619,441 265,690,145
Savings for every
1% reduction in
losses (EUR)
663,018 4,576,721 192,086 3,860,693 1,952,430 11,244,947
Energy Lost in
Egypt (Kcal)
9,378,595,611 170,403,104,000 1,300,774,960 343,457,666,550 42,453,623,134 566,993,764,255
Food Opportunity
Lost in Egypt Per
Year (Persons)
14,887 270,481 2,065 545,171 67,387 899,990
Area Lost (fed) 7,369 29,939 576 101,193 7,026 146,102
Loss Assessment per stage of
operation across the 5 crops
Buck Consultants International, 2014 12
The study indicates that 79% of the losses occur at the farm level (by 52.7%)
and at the local market level (by 26.3%)
As a result of a relatively advanced supply chain, losses at the export stage are
less than at the other two stages
Intervening on the farm level stage and the local market stage would have
bigger impacts on reducing agri-logistics losses and securing more energy to
feed people
Farm Level Local Market Export Market Total
Loss Percent (%) 10% 5% 4% 19%
Quantity Losses (MT) 1,218,199 1,224,947 12,097 2,455,242
Value Loses (EUR) 160,116,075 93,921,718 11,652,352 265,690,145
Calorific Losses (Kcal) 333,295,441,900 233,698,322,355 566,993,764,255
No of People Per Annum
Missing on Food
529,040 370,950 899,990
Buck Consultants International, 2014 13
Type of agri-logistics loss
Agro-logistics
LossesG
ree
n
Be
an
s
Weight
%
Gra
pe
s
Weight
% Cap
sic
um
Weight
% To
ma
toe
s
Weight
%
On
ion
s
Weight
% Ave
rag
e
Ave
rag
e
We
igh
t
Product
Handling
5% 33% 5% 21% 5% 33% 8% 24% 2% 25% 5% 26.4%
Transportation 4% 27% 6.50% 27% 4% 27% 12% 36% 2.50
%
31% 5.8% 30.5%
Processing at
pack-house
3% 20% 7.50% 31% 3% 20% 5% 15% 2.50
%
31% 4.2% 22.1%
Shipping 3% 20% 5% 21% 3% 20% 8% 24% 1% 13% 4% 21%
Total 15% 100% 24% 100% 15% 100% 33% 100% 8% 100% 19% 100%
Buck Consultants International, 2014 14
Type of agri-logistics loss
4 Identified drivers and
envisaged solutions
Buck Consultants International, 2014 15
In terms of:
Causes
Recommendations
Possible Interventions
Buck Consultants International, 2014 16
Crop handling times
Handling tools
Improper load onto trucks
Trucks overload
Un-cooled transport for
long distance
Improper crop flow
Improper crop handling
Packaging system
Improper transport to local
market
Cold chain on the local
market level
Lack of Q.C. check list
for trucks, drivers &
reefer containers
Improper tracking for the
exported shipments
Increase logistics
awareness
Increase product handling
awareness through On-job
training & technical
assistance
New handling technology
Capacity building through
growers’ associations
FIFO system
Increase logistics
awareness
New packaging
technology
JV with Dutch
counterparts in packing
lines & cold-storage
Q.C. check list
Control transport to
terminals
Shipments tracking
system
Increase supply chain
awareness
Farm Level Product Preparation &
Packaging Level
Foreign Markets
Level
CA
US
ES
RE
CO
MM
EN
DA
TIO
NS
&
INT
ER
VE
NT
ION
S
20131225
4 Identified drivers and
envisaged solutions
Buck Consultants International, 2014 17
Thank You
