Dairy Supply Chain Research Articles

Measuring agility performance in fresh food supply chains: an ordinal two-stage data envelopment analysis

In this paper, a process-based model including several measures for providers of agility, capabilities of agility, and main goals of supply chain is proposed. Then, an ordinal two-stage data envelopment analysis (OTSDEA) model has been developed using qualitative measures. The proposed OTSDEA can measure the relative efficiency of the aforementioned process and sub-processes in supply chain. As the overall efficiency of supply chain decomposed among aforementioned sub-processes so, decision maker (DM) can gain a proper perspective of each sub-process as well as the inefficient segments. Moreover, if a given DMU is proved to be inefficient, the source of inefficiency can be found from among its sub-DMUs. This can supplies more managerial insights for modification of an inefficient sub-process in a DMU more efficiently. Real case study of a dairy supply chain is supplied to address the ability of proposed procedure to measure efficiency of two-stage process in real environment.

A three-stage fuzzy DEA approach to measure performance of a serial process including JIT practices, agility indices, and goals in supply chains

In this paper, a generic process in which just-in-time (JIT) practices are changed into agility indices, and agility indices are converted into performance measurement in supply chain has been supposed in form of a conceptual model. Then, a three-stage data envelopment analysis (TSDEA) model has been proposed to measure the relative efficiency of aforementioned process and sub-processes. The uncertainties of criteria in the processes were modelled through linguistic terms parameterised using fuzzy sets. Afterwards, the TSDEA had been developed in fuzzy environment. In proposed fuzzy TSDEA, each decision making unit (DMU) has been supposed to make up of three serially connected sub-DMUs. Mathematical modelling of proposed fuzzy TSDEA resulted in great reduction of computational efforts. Moreover, fuzzy TSDEA associated an interval efficiency score to each DMU and sub-DMU. DMU and sub-DMU were classified based on interval efficiency scores. Solving, the proposed fuzzy TSDEA resulted in establishing managerial view into the modules and sub-modules which required improvement in a multi-stage process. The proposed approach has been applied in real case study of dairy supply chains.

The Relevance Of A Rules-Based Freshmilk Price Structure Policy In East Java : An Evidence Based Assesment

At present, Indonesia is still lack of fresh milk supply, domestic fresh milk production is covered only 30% national fresh milk processing industry needed and is about 70% milk industry material should be imported, mainly from New Zealand, Australia, EU and USA. The following actors are active in the formal dairy supply chain in Indonesia: (1) Milk producers, (2) The primary dairy/ village cooperatives (KUD), (3) The overall dairy cooperative (GKSI), (4) The milk processors/ dairy industry, (5) Based on that situation, and to improve the development of small scale dairy farming activities in east java, this paper have an objective to examine the relevance of a rules-based fresh milk price structure policy in east java. East java dairy supply chain inefficiencies are reflected in a relatively large difference between farm gate milk price and consumer prices of milk products. Factors like the dependency on imported milk powder and the strongly fluctuating world market prices, the lack of protection against world market fluctuations for the local milk producers, the scale and structure of dairy farming, and poor raw milk quality affect the development of east java dairy supply chain.

Al Ain Dairy: managing demand and supply

Subject area Marketing strategy, retail/sales management and logistics. Study level/applicability Undergraduate and postgraduate. Case overview Al Ain Dairy works is in one of the most highly competitive industries in the world – the food industry. In the dairy business, choice, freshness, safety standards, inventory management, supply chain and marketing are key to sustainability. Al Ain Diary explains some key challenges in this industry for managing and planning sales. This case builds on a previous case and can be used to teach marketing strategy, retail management and logistics. The case also gives an idea on the food industry especially the dairy market and some of the challenges associated with it. Expected learning outcomes Students can try forecasting and planning sales based on seasonal trends. Since the process complexity increases as the number of stock keeping units increase, the case provides a rich context of a company where inventory management is a key to success. Product portfolio management is another subject area of focus in this case. For market expansion, students can look at current organizational and market constraints, organizational competencies (and their transferability), and market synergies and similarities to recommend strategy. Supplementary materials Teaching notes.

Dairy supply chain modernisation in Poland: what about those not keeping pace?

This paper studies the determinants and consequences of heterogeneous market participation among Polish dairy farmers using a unique data set on supply chain characteristics and individuals with different market relationships. It investigates factors that cause households not to participate in the market and then estimates farm orientation effects on revenues, using semi-parametric methods. The key finding is that farms maintaining commercial dairy business were better off than those who ceased milk sales. However, detailed analysis shows that this difference could be attributed to supply chain modernisation and becomes insignificant once subsistence farmers are compared to commercial farms supplying the traditional marketing channel.

Supporting dairy farms by improving water productivity in the Tadla irrigation scheme (Morocco)

A research intervention was conducted in the dairy supply chain of the Tadla irrigation scheme in Morocco. The main objective was to assess water productivity through dual purpose herds (milk and meat) and to identify ways of improving it through better fodder yields and cattle rearing practices. An intervention method was tested. It relied on technical support for 10 cattle farmers. A regular evaluation of diets distributed to lactating cows was undertaken. In cases of nutritive insufficiencies or imbalances in relation to cows' potential milk yield requirements, an adequate supplementation was proposed and its effects on milk productivity assessed. In addition, a simulation tool was designed and tested with farmers to determine the effects of strategic changes (substitution of crossbreeds by pure Holstein cows, replacement of alfalfa by maize silage, introduction of drip irrigation) on their overall performance. The field study revealed that some 1.8 cubic meters of water were necessary for 1 kg of milk, whereas a volume of 10.6 cubic meters of water was needed for a kg of cattle live weight gain. The economic values of water productivity were 0.07 € and 0.24 € per cubic meter of water, respectively, for milk and live weight gain. The use of balanced diets made it possible to increase the average milk yield per cow. The results indicated that water productivity through irrigated cattle farming may be significantly improved by enhancing cropping and cattle rearing practices. This implies that on-farm extension services have to be improved to test such intervention tools at a larger scale.

Farmers, Vertical Coordination, and the Restructuring of Dairy Supply Chains in Central and Eastern Europe

The combination of transition and globalization since the early 1990s has caused dramatic changes in the dairy chains in Central and Eastern Europe. This paper uses survey evidence from several Central and East European countries to document the growth of vertical coordination in the dairy chain, its relationship with policy reforms, its effects and the implications for small farms. Evidence suggests that in several countries small dairy farms have benefited from vertical coordination processes by providing them access to inputs and higher value markets.

Evolution and challenges of dairy supply chains: Evidence from supermarkets, industries and consumers in Ethiopia

In developing countries the demand for products of animal origin is expected to grow rapidly in the coming years. Using data collected from 200 urban households this study examines the evolution of the dairy market in Ethiopia. In particular, this study suggests that although the Ethiopian dairy market remains extremely thin and volatile, the commercialization of processed dairy products through supermarkets is expanding and is expected to keep doing so in the foreseeable future. Increasing urbanization and corresponding changes in consumer preferences, behaviour and purchasing power are the identified causes for the rise of supermarket-processor dairy chains. This study shows also that emerging dairy chains provide new market opportunities to Ethiopian farmers, but the existence of retail-industrial monopolies and monopsonies jeopardize farmers’ economic benefits to a great extent. The study concludes with some implications for policy and further research.

Marketing potential of corporate social responsibility in supply chains

AbstractThis paper provides a method to assess the customer value and marketing possibilities of increasing transparency about the corporate social responsibility (CSR) of supply chains. The willingness of small firms, in this study farmers in food supply chains, to make information available about certain CSR issues is measured and compared with CSR issues about which consumers value more information. This will identify the CSR issues about which it would be appropriate for supply chains to increase their transparency. Moreover, farmers in supply chains are grouped based on the information about CSR issues that they are willing to make available and matched with consumer segments that have a need for such information. The method is demonstrated for Dutch dairy supply chains, but it can easily be adapted to other (food) supply chains. Transparency about the CSR issue ‘food safety’ has marketing potential for Dutch dairy supply chains and can be increased relatively simply. Transparency about the CSR issue ‘animal welfare’ also has good marketing potential, but increasing the transparency about animal welfare is considered difficult. Transparency about the CSR issues ‘environment’ and ‘revenues and costs’ has little marketing potential for Dutch dairy supply chains. The existence of market segments that have a need for information about certain CSR issues and that can be matched with groups of farmers willing to provide this information shows that there are marketing opportunities for product differentiation and target marketing in the Dutch dairy supply chain.

Dispositifs de coordination entre industriel éleveurs et périmètre irrigué dans un bassin de collecte laitier au Maroc

The supply chain concept is used for analyzing the management of a dairy plant supply area located in a large Moroccan irrigation scheme. Four main stakeholders are identified, i.e. the scheme manager, the dairy company, milk collection co-operatives and dairy farmers using irrigation water. The tools and processes implemented in order to co-ordinate their decisions are analyzed considering objectives such as saving irrigation water and increasing the water productivity on the water supplier side, and improving the milk quality, the seasonality and the productivity as far as the dairy supply chain is concerned. It includes: i) planning and operating both the water and milk flows; ii) implementing adapted economic tools, i.e. water pricing and milk payment system; and iii) providing services to farmers such as technical advice and input/credit supply. Nevertheless, the system performances could be improved. Various research and intervention topics are suggested in the conclusion, mainly: i) the design of a decision support system dedicated to the cows' feeding system; ii) the milk quality management along the supply chain; and iii) the co-operatives' management system.

Globalisation, governance and post‐structural political economy: Perspectives from Australasia

Abstract: The paper argues that post‐structural political economy (PSPE) offers geography and geographers interesting potential for the development of a style of geographic inquiry that has qualities that may be constitutive of progressive spaces. This new style of inquiry is seen as adding to the repertoire of political strategies and potential geographies of responsibility and extending notions of ethical behaviours. Issues relating to the assemblage of PSPE as a distinctive approach to knowledge production are considered and situated in the Australasian context. Discussion focuses especially on insight about the use of PSPE derived from three illustrative research case studies (a project on learning challenges in sheep meat and dairy supply chain realignment, tensions around fisheries management in New Zealand and an international workshop series on the topic of governmentality). The case studies provide a lens on the socio‐spatial relationships between globalisation and governance and interrogate the value of PSPE for understanding the connections between individual choices, governing practices and the construction of the globalising economy. The PSPE approach if actively incorporated into research processes may have important implications for future relationships between social responsibility, national economic development and globalisation.

Lait et fromage dans un pays andin : quelle place pour les filières artisanales péruviennes face aux industries laitières ?

Depuis le début des années 1990, la production laitière péruvienne est en forte croissance. Le développement des filières laitières répond à celui d’un marché protégé des importations, en expansion du fait de la croissance démographique urbaine et rendu accessible par l’amélioration du réseau routier. Il concerne les filières artisanale et industrielle qui sont liées en amont et en aval par des relations d’interdépendance et des rapports de force. A partir d’enquêtes technico-économiques auprès des éleveurs laitiers de différentes régions, cet article montre que ce développement laitier se traduit par d’importantes inégalités de revenus entre les catégories de producteurs, reflet de leur accès différencié aux ressources. Les données statistiques consultées et les entretiens réalisés avec différents acteurs des filières laitières péruviennes permettent d’évaluer les enjeux et les limites des démarches qualité mises en oeuvre dans les filières artisanales pour faire face aux industries. L’article s’interroge finalement sur l’impact des accords de libre-échange dans lesquels le Pérou est engagé sur les filières laitières nationales et conclut par des propositions de politiques d’accompagnement à ce développement laitier.

Overcoming supply chain failure in the agri-food sector: A case study from Moldova

Successor states of the Soviet Union have witnessed substantial falls in agri-food production since the break-up of the USSR. Supply chain disruption has been a major factor in this decline. This paper identifies how asymmetric information between farmers and processors led to market failure in Moldova and how one dairy company has attempted to overcome such a crisis. The case study company has invested in better monitoring of milk quality to effectively supervise transactions. Milk production is a major source of income for rural households who sell to dairies via village collecting stations. The costs of monitoring milk quality to avoid market failure from adverse selection are significant. Preventing small-scale producers being marginalised from dairy supply chains is an important factor in safeguarding and improving rural livelihoods.

Método para análise de benefícios em cadeias de suprimento: um estudo de caso

O objetivo deste trabalho é apresentar um método para realizar análises quantitativas de desempenho de configurações operacionais alternativas, em cadeias de suprimentos empresariais. Este método propõe integrar, em um único framework de análise, os conceitos advindos da gestão da cadeia de suprimentos e de sistemas de custeios gerenciais. O trabalho propõe a operacionalização do método por meio da utilização dos conhecimentos advindos da abordagem conhecida como system dynamics (SD). Para tanto, foi realizado um estudo de caso junto a uma Cooperativa de Laticínios do interior do Estado de São Paulo, no qual modelos de simulação foram construídos, baseados na análise prévia dos elementos do sistema. Deste modo, tornou-se possível examinar as relações de causalidade por meio da construção de cenários alternativos e controle sistemático das variáveis pesquisadas. Do exame dos cenários alternativos e do desempenho do sistema frente aos "distúrbios" aos quais as variáveis são submetidas, natureza do processo de simulação, pôde-se ganhar um maior aprendizado sobre o sistema em estudo.

What price a “pinta”? Differentiating the market for liquid milk: Results of consumer research in the UK dairy sector

Since de‐regulation of the UK dairy market in November 1995, the UK dairy industry has lurched from one crisis to another, as milk prices initially rose to levels that were unsustainable for all but the largest processors and then fell to levels at which even the largest and most efficient dairy farmers are struggling to survive. Considerable emphasis has been placed in recent years on cutting costs in the dairy supply chain, yet little attention has been given to the scope for adding value, particularly for the benefit of dairy farmers. Against this background, the Milk Development Council commissioned a research project, from which this paper is drawn, to explore the scope for adding value to liquid milk. The results of the comprehensive consumer research undertaken provide clear evidence that opportunities exist for differentiating the liquid milk market. The research also underlines the strategic importance of consumer research in an increasingly competitive market environment.

Pluralism in contemporary marketing practices

Over the last decade, considerable emphasis has been placed on the importance of relationship marketing. The re‐orientation of marketing has been at the expense of the traditional approach to marketing, that is transaction marketing (the “4Ps”). However, others conclude that transactional marketing is still relevant and practised concurrently with various types of relational marketing. However, no empirical evidence has been provided to support the proposition of a pluralistic approach to marketing. We, therefore, draw on empirical, qualitative case study evidence from the emerging and transforming international food supply chain that supports the proposition. The paper uses two settings from this context to illustrate that both transactional and relational approaches to marketing are employed concurrently. The first case, at the product origin of the supply chain, is based upon research into relationship marketing in the Danish‐UK dairy supply chain. The second case, at the consumer interface of the supply chain, evolves from a study into an interactive home‐shopping supermarket in New Zealand. The paper considers implications and areas for further research.