The evaluation of supply chain risk management on smallholder layer farms

Abstract

The layer farming has been a vital element in our economy as the sector does not only provide large number of employments for smallholder farmers but also supply food provision that support our national’s food security and dignity. However, this sector is prone to risk as high uncertainty lies on the production of eggs. Market price volatility, food scarcity, extreme weather, soaring price of raw materials are some risks that can disrupt the sustainability of the supply chain of egg productions. It is essentially important for smallholder farmers to incorporate risk management approach in their egg productions. This research employs a supply chain operational reference (SCOR) and house of risk (HOR) methodology to identify, assess and evaluate the inherent risk that lies on egg productions managed by smallholder farmers. HOR phase I were able to identify 25 risk events and 45 risk agents, while HOR phase II were able to identify 4 risk agents which represented 20% of ARP score. Finally, this research was able to propose 4 preventive actions (PA) to mitigate the risk of egg productions by smallholder farms.