Empirical study on risk mitigation for dairy supply chain management of Aavin Co-operative Milk Producers’ Union Ltd.

Abstract

Raw fresh-milk has a perishable characteristic, so it needs an appropriate handling from milking to processing, otherwise fresh milk will be contaminated by bacteria so that the shelf life becomes shorter and its losses the quality. Besides, from the perspective of quantity, the lower farmer’s production in the upstream will minimizes the product availability in the downstream. This condition may cause some potential risk during the supply chain. There is a need to map the risk along the supply chain, using samples in Tirunelveli Aavin Nellai milk plant. This paper aimed to analyze the pattern of the supply chain and its risk, to set the risk treatment and to mitigate the risk as well. Data sampling were selected by simple random sampling and then collected using in-depth interview to the risk owners. The results show there are 6 supply chain models and the total number of risks is 50 some of the risks are repeated and from that 10 prioritized risks are mitigated.