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Abstract
Although banana is an important fruit in Sri Lanka that gives a good income to farmers. Researchers have indicated that the majority of the crop is damaged from the farm gate to the consumer table. Accordingly, this research was addressed ‘to find the risks of the banana supply chain in Sri Lanka. The Interpretive Structural Modeling (ISM) approach was used in this research to find the risks in the banana supply chain of Sri Lanka. According to the literature survey and data analysis, several risks such as human and personal, production, financial, land prices, biological and environmental, information, political, weather-related, management and operational, agricultural policy, logistics and infrastructure, country’s economic cycle, price or market and input risks can be encountered in the banana supply chain. These risks were categorized into different levels according to the influence they provide to the supply chain. Identifying these risks on a hierarchical model was significant to the administrators, managers and farmers to minimize them effectively to manage the supply chain. The analysis in this study further indicated that production, financial, biological and environmental, weather-related events, political situations, and logistics and infrastructure were the most significant risks. Dealing with these risks can minimize the effect of other risks, improve the income of the farmers and maximize consumer choice.
Keywords: Agriculture, Banana, Interpretive Structural Modeling (ISM), Risks, Sri Lanka, Supply Chain.
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This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
References
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- Arvanitoyannis, I. & Mavromatis, A. 2009. Banana cultivars, cultivation practices, and physicochemical properties. Crit Rev Food Sci Nutr, 49(DOI: 10.1080/10408390701764344), 113-135.
- Attri, R., Dev, N. & Sharma, V. 2013. Interpretive Structural Modelling (ISM) approach: An Overview. Research Journal of Management Sciences, 2(2), 3-8.
- Bennett, E., Carpenter, S. Gordon, J. & Ramankut, N., 2014. Toward a More Resilient Agriculture. The Solutions Journal, 5(5), 65-75.
- Bo, Y., Ping, S. & De-long, D. 2014. Risk Assessment and Control of Agricultural Supply Chain on the Internet of Things. Journal of Industrial Engineering and Engineering Management, 2014(03), 10-23.
- CBSL, 2018. Monthly Price Bulletin, Colombo: Central Bank of Sri Lanka. [Online] Available at: https://www.cbsl.gov.lk/en/statistics/economic-indicators/monthly-bulletin [Accessed 10 06 2020].
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- Contré, F. & Goldin, I. 1990. Agriculture and The Economic Cycle: An Economic and Econometric Analysis with Special Reference to Brazil, Brasília: OECD Development Centre. [Online] Available at: https://www.oecd.org/dev/americas/1919672.pdf [Accessed 03 05 2020].
- Crouhy, M., Galai, D. & Mark, R. 2006. The Essentials of Risk Management. I ed. New York: McGraw Hill.
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- De Silva, M. & Kawasaki, A. 2018. Socioeconomic Vulnerability to Disaster Risk: A Case Study of Flood and Drought Impact in a Rural Sri Lankan Community. Ecological Economics, Volume 152, 131-140.
- Dolgui, A., Ivanov, D. & Rozhkov, M. 2020. Does the ripple effect influence the bullwhip effect? An integrated analysis of structural and operational dynamics in the supply chain. International Journal of Production Research, 58(5), 1285-1301.
- Ekanayake, S. & Bandara, L. 2002. Development of banana leather. Annals of the Sri Lanka Department of Agriculture, Volume 4, 353-358.
- FAO, 2020. Food and Agriculture Organization. [Online] Available at http://www.fao.org/news/story/en/item/1187738/icode/ [Accessed 15 6 2020].
- Gardas, B. B., Raut, R. D. & Narkhede, B. 2017. Modelling causal factors of post-harvesting losses in vegetable and fruit supply chain: An Indian perspective. Renewable and Sustainable Energy Reviews, Volume 80, 1355-1371.
- Ghag, S. & Ganapathi, T. 2017. Genetically modified bananas: To mitigate food security concerns. Scientia Horticulture, 214(1), 91-98.
- Hanson, J. et al. 2004. Risk and risk management in organic agriculture: Views of organic farmers. Renewable Agriculture and Food Systems, 19(4), 218–227.
- Hathurusinghe, C., Vidanapathirana, R., Rambukwella, R. & Somaratne, T. 2012. A Study on Value Chain of Pineapple and Banana in Sri Lanka. [Online] Available at http://www.harti.gov.lk/images/download/reasearch_report/145.pdf [Accessed 04 10 2018].
- Huang, J., Tzeng, G. & Ong, C. 2005. Multidimensional data in multidimensional scaling using the analytic network process. Pattern Recognition Letters, 26(6), 755–767.
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- Karunagoda, K. 2004. Changes in Labour Market and Domestic Agriculture. Sri Lankan Journal of Agricultural Economics, 6(1), 83-97.
- Khan, I. & Rahman, Z. 2017. Brand Experience Anatomy in Hotels: An Interpretive Structural Modeling Approach. Cornell Hospitality Quarterly, 58(2), 165-178.
- King, R. & Venturini, L. 2014. Demand for Quality Drives Changes in Food Supply Chains, Chicago: Economic Research Service/USDA. [Online] Available at https://www.ams.usda.gov/sites/default/files/media/Food%20Value%20Chains%20Creating%20Shared%20Value%20to%20Enhance%20Marketing%20Success.pdf [Accessed 20 7 2020].
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- Komarek, A., Pinto, A. & Smith, V. 2020. A review of types of risks in agriculture: What we know and what we need to know. Agricultural Systems, Volume 178, 1-18.
- Kudagamage, C., Chandrasiri, G. & Razmy, A. 2002. Analysis of long-term trends in the banana sector of Sri Lanka, Annals of Sri Lanka. Annals of the Sri Lanka Department of Agriculture, Volume 4, 21-32.
- Kumar, P., Ahmed, F., Singh, R. & Sinha, P. 2018. Determination of hierarchical relationships among sustainable development goals using interpretive structural modelling. Environment, Development and Sustainability, 20(5), 2119–2137.
- Lin, Y., Lin, C., Yu, H. & Tzeng, G. 2010. A novel hybrid MCDM approach for outsourcing vendor selection: A case study for a semiconductor company in Taiwan. Expert Systems with Applications, 37(7), 4796–4804.
- Muruganantham, G., Vinodh, S., Arun, C. S. & Ramesh, K. 2018. Application of interpretive structural modelling for analysing barriers to total quality management practices implementation in the automotive sector. Total Quality Management & Business Excellence, 29(5-6), 524-545.
- Nisansala, W., Abeysingha, N., Islam, A. & Bandara, A. 2020. Recent rainfall trend over Sri Lanka 1987–2017. International Journal of Climatology, 40(7), 3417-3435.
- Ogboru, I., Abdulmalik, F. & Park, I. 2018. Government Expenditure on Agriculture and Its Impact on Unemployment Reduction in Nigeria: 1999 –2015. International Journal of Economics, Commerce and Management, 6(3), 1-25.
- Partane, J., Kohtamäki, M., Patel, P. & Parida, V. 2020. Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow. International Journal of Production Economics, Volume 221, 1-10.
- Perera, E. & Weerakkody, W. 2018. Determinants of Post-Retirement Employment in Sri Lanka. Kelaniya Journal of Management, 7(2), 38-53.
- Perming , E. 2013. Paddy and banana cultivation in Sri Lanka - A study analysing the farmers’ constraints in agriculture with a focus on Sooriyawewa D.S. division, Lund Sweden: Department of Physical Geography and Ecosystem Science Physical Geography and Ecosystems Analysis Lund University Sölvegatan.
- Pfohl, H. C., Gallus, P. & Thomas, D. 2011. Interpretive structural modelling of supply chain risks. International Journal of Physical Distribution & Logistics Management, 41(9), 839-859.
- Ratnasinghe, G. 2003. Present status and future research need on banana nematodes in Sri Lanka. In Training Workshop on Enhancing Capacity for Nematode Management on Small-scale Banana Cropping Systems, Laguna, Philippines: INIBAP-AP, Los Baños.
- Rosch, S. 2018. United States Department of Agriculture-Economic Research Service. [Online] Available at https://www.ers.usda.gov/topics/farm-practices-management/risk-management/risk-in-agriculture.aspx [Accessed 09 10 2018].
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- Salvia, L. 2020. The restructuring of Italian agriculture and its impact upon capital-labour relations: Labour contracting and exploitation in the fresh fruit and vegetable supply chain of the Lazio Region, Central Italy. Agrarian Change, 20(1), 98-112.
- Sarananda, K. 1999. Country paper - Sri Lanka, Report of the APO Seminar on Appropriate Postharvest Technologies for Horticultural Crops in Asia. Bangkok-Thailand, 230-236.
- Shahzad, M. & Abdulai, A. 2019. Production Risk Management in Agriculture and Farm Performance in Rural Pakistan: Role of Adaptation to Climate Change. Atlanta, GA, Agricultural & Applied Economics Association Annual Meeting.
- Shivantha, K. 2020. Sri Lanka Mirror. [Online] Available at https://srilankamirror.com/news/18389-locusts-attack-farmlands-in-kurunegala [Accessed 13 07 2020].
- Sudarshan, G. M., Anand, B. & Sudulaimuttu, M. B. 2013. Marketing & Post-harvest losses in fruits: Its implications on availability and economy-A study on pomegranate in Karnataka. Int. Journal of Management and Social Sciences, 2(7), 34-43.
- Sushil, M. 2012. Interpreting the Interpretive Structural Model. Global Journal of Flexible Systems Management, 13(2), 87-106.
- Wanigasundera, W. & Atapattu, N. 2019. Chapter 5 - Extension reforms in Sri Lanka: lessons and policy options. In: S. Babu & P. Joshi, eds. Extension reforms in Sri Lanka: lessons and policy options. Washington, DC, United States: Academic Press, 79-98.
- Wasala, W., Dharmasena, D. & Disanayaka, T. 2012. Physical characteristics and mechanical properties three commercially grown banana cultivars in Sri Lanka. Tropical Agricultural Research, 24(1), 42-53.
- Wasala, W. 2014. Postharvest Losses, Current Issues and Demand for Postharvest Technologies for Loss Management in the Main Banana Supply Chains in Sri Lanka. Journal of Postharvest Technology, 2(1), 80-87.
- Weerasinghe, W., Rajapaksha, E., Gunawardena, W. & Samarakone, T. 2020. Relationship between Management Practices and Calf Welfare in Mid-Country Dairy Farms in Sri Lanka. Tropical Agricultural Research, 31(1), 103-113.
- Wilson, N. 1996. Supply chain management: a case study of a dedicated supply chain for bananas in the UK grocery market. Supply Chain Management: An International Journal, 1(2), 28-35.
- Zakharchenko, O. 2017. Ecological Risks in Agriculture: Problem-Oriented Approach. Business, Management and Accounting, 3(1), 12-18.
References
Abeysekera, T. & Abeysekera, S. 2008. Alternative supply chain management practices and the performance of marketing channels in fresh fruit and vegetable marketing in Sri Lanka. [Online] Available at: http://www.fao.org/docrep/pdf/010/ah996e/ah996e02.pdf [Accessed 27 10 2019].
AgStat, 2018. Centre, Socio-Economics and Planning, Peradeniya- Kandy Sri Lanka: Department of Agriculture. [Online] Available at: https://www.doa.gov.lk/ICC/images/publication/Books/Other_Bok/AgstatBK.pdf [Accessed 12 04 2020].
Arvanitoyannis, I. & Mavromatis, A. 2009. Banana cultivars, cultivation practices, and physicochemical properties. Crit Rev Food Sci Nutr, 49(DOI: 10.1080/10408390701764344), 113-135.
Attri, R., Dev, N. & Sharma, V. 2013. Interpretive Structural Modelling (ISM) approach: An Overview. Research Journal of Management Sciences, 2(2), 3-8.
Bennett, E., Carpenter, S. Gordon, J. & Ramankut, N., 2014. Toward a More Resilient Agriculture. The Solutions Journal, 5(5), 65-75.
Bo, Y., Ping, S. & De-long, D. 2014. Risk Assessment and Control of Agricultural Supply Chain on the Internet of Things. Journal of Industrial Engineering and Engineering Management, 2014(03), 10-23.
CBSL, 2018. Monthly Price Bulletin, Colombo: Central Bank of Sri Lanka. [Online] Available at: https://www.cbsl.gov.lk/en/statistics/economic-indicators/monthly-bulletin [Accessed 10 06 2020].
CBSL, 2019. Annual Report, Colombo: Central Bank of Sri Lanka. [Online] Available at: https://www.cbsl.gov.lk/en/publications/economic-and-financial-reports/annual-reports/annual-report-2019 [Accessed 03 05 2020].
Contré, F. & Goldin, I. 1990. Agriculture and The Economic Cycle: An Economic and Econometric Analysis with Special Reference to Brazil, Brasília: OECD Development Centre. [Online] Available at: https://www.oecd.org/dev/americas/1919672.pdf [Accessed 03 05 2020].
Crouhy, M., Galai, D. & Mark, R. 2006. The Essentials of Risk Management. I ed. New York: McGraw Hill.
DCS, 2017. Agricultural Household Survey, Colombo: Department of Census and Statistics Sri Lanka [Online] Available at: http://www.statistics.gov.lk/Agriculture/StaticalInformation/new/AHS2016-17Report [Accessed 03 05 2020].
De Silva, M. & Kawasaki, A. 2018. Socioeconomic Vulnerability to Disaster Risk: A Case Study of Flood and Drought Impact in a Rural Sri Lankan Community. Ecological Economics, Volume 152, 131-140.
Dolgui, A., Ivanov, D. & Rozhkov, M. 2020. Does the ripple effect influence the bullwhip effect? An integrated analysis of structural and operational dynamics in the supply chain. International Journal of Production Research, 58(5), 1285-1301.
Ekanayake, S. & Bandara, L. 2002. Development of banana leather. Annals of the Sri Lanka Department of Agriculture, Volume 4, 353-358.
FAO, 2020. Food and Agriculture Organization. [Online] Available at http://www.fao.org/news/story/en/item/1187738/icode/ [Accessed 15 6 2020].
Gardas, B. B., Raut, R. D. & Narkhede, B. 2017. Modelling causal factors of post-harvesting losses in vegetable and fruit supply chain: An Indian perspective. Renewable and Sustainable Energy Reviews, Volume 80, 1355-1371.
Ghag, S. & Ganapathi, T. 2017. Genetically modified bananas: To mitigate food security concerns. Scientia Horticulture, 214(1), 91-98.
Hanson, J. et al. 2004. Risk and risk management in organic agriculture: Views of organic farmers. Renewable Agriculture and Food Systems, 19(4), 218–227.
Hathurusinghe, C., Vidanapathirana, R., Rambukwella, R. & Somaratne, T. 2012. A Study on Value Chain of Pineapple and Banana in Sri Lanka. [Online] Available at http://www.harti.gov.lk/images/download/reasearch_report/145.pdf [Accessed 04 10 2018].
Huang, J., Tzeng, G. & Ong, C. 2005. Multidimensional data in multidimensional scaling using the analytic network process. Pattern Recognition Letters, 26(6), 755–767.
IndexMundi, 2020. IndexMundi. [Online] Available at https://www.indexmundi.com/commodities/?commodity=bananas&months=60¤cy=lkr [Accessed 9 6 2020].
ISO, 2018. ISO 31000. Geneva, Switzerland: BSI Standards Limited.
Jaffee, S., Siegel, P. & Andrews, C. 2010. Rapid Agricultural Supply Chain Risk Assessment: A Conceptual Framework, Washington: The World Bank. [Online] Available at http://documents1.worldbank.org/curated/en/657211468157529181/pdf/565900NWP0ARD01pApRisk1combined1web.pdf [Accessed 6 7 2020].
Karunagoda, K. 2004. Changes in Labour Market and Domestic Agriculture. Sri Lankan Journal of Agricultural Economics, 6(1), 83-97.
Khan, I. & Rahman, Z. 2017. Brand Experience Anatomy in Hotels: An Interpretive Structural Modeling Approach. Cornell Hospitality Quarterly, 58(2), 165-178.
King, R. & Venturini, L. 2014. Demand for Quality Drives Changes in Food Supply Chains, Chicago: Economic Research Service/USDA. [Online] Available at https://www.ams.usda.gov/sites/default/files/media/Food%20Value%20Chains%20Creating%20Shared%20Value%20to%20Enhance%20Marketing%20Success.pdf [Accessed 20 7 2020].
Kiriveldeniya, K. & Rosario, H. 2020. Value Chain Actors, Farm-gate Price and Farmer Loyalty in Strategic Vertical Coordination in the Maize Out-Grower Farming in Sri Lanka. The Journal of Agricultural Sciences - Sri Lanka, 15(2), 154-172.
Komarek, A., Pinto, A. & Smith, V. 2020. A review of types of risks in agriculture: What we know and what we need to know. Agricultural Systems, Volume 178, 1-18.
Kudagamage, C., Chandrasiri, G. & Razmy, A. 2002. Analysis of long-term trends in the banana sector of Sri Lanka, Annals of Sri Lanka. Annals of the Sri Lanka Department of Agriculture, Volume 4, 21-32.
Kumar, P., Ahmed, F., Singh, R. & Sinha, P. 2018. Determination of hierarchical relationships among sustainable development goals using interpretive structural modelling. Environment, Development and Sustainability, 20(5), 2119–2137.
Lin, Y., Lin, C., Yu, H. & Tzeng, G. 2010. A novel hybrid MCDM approach for outsourcing vendor selection: A case study for a semiconductor company in Taiwan. Expert Systems with Applications, 37(7), 4796–4804.
Muruganantham, G., Vinodh, S., Arun, C. S. & Ramesh, K. 2018. Application of interpretive structural modelling for analysing barriers to total quality management practices implementation in the automotive sector. Total Quality Management & Business Excellence, 29(5-6), 524-545.
Nisansala, W., Abeysingha, N., Islam, A. & Bandara, A. 2020. Recent rainfall trend over Sri Lanka 1987–2017. International Journal of Climatology, 40(7), 3417-3435.
Ogboru, I., Abdulmalik, F. & Park, I. 2018. Government Expenditure on Agriculture and Its Impact on Unemployment Reduction in Nigeria: 1999 –2015. International Journal of Economics, Commerce and Management, 6(3), 1-25.
Partane, J., Kohtamäki, M., Patel, P. & Parida, V. 2020. Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow. International Journal of Production Economics, Volume 221, 1-10.
Perera, E. & Weerakkody, W. 2018. Determinants of Post-Retirement Employment in Sri Lanka. Kelaniya Journal of Management, 7(2), 38-53.
Perming , E. 2013. Paddy and banana cultivation in Sri Lanka - A study analysing the farmers’ constraints in agriculture with a focus on Sooriyawewa D.S. division, Lund Sweden: Department of Physical Geography and Ecosystem Science Physical Geography and Ecosystems Analysis Lund University Sölvegatan.
Pfohl, H. C., Gallus, P. & Thomas, D. 2011. Interpretive structural modelling of supply chain risks. International Journal of Physical Distribution & Logistics Management, 41(9), 839-859.
Ratnasinghe, G. 2003. Present status and future research need on banana nematodes in Sri Lanka. In Training Workshop on Enhancing Capacity for Nematode Management on Small-scale Banana Cropping Systems, Laguna, Philippines: INIBAP-AP, Los Baños.
Rosch, S. 2018. United States Department of Agriculture-Economic Research Service. [Online] Available at https://www.ers.usda.gov/topics/farm-practices-management/risk-management/risk-in-agriculture.aspx [Accessed 09 10 2018].
Rosch, S., 2019. United States Department of Agriculture Economic Research Service. [Online] Available at https://www.ers.usda.gov/topics/farm-practices-management/risk-management/risk-in-agriculture/ [Accessed 8 6 2020].
Salvia, L. 2020. The restructuring of Italian agriculture and its impact upon capital-labour relations: Labour contracting and exploitation in the fresh fruit and vegetable supply chain of the Lazio Region, Central Italy. Agrarian Change, 20(1), 98-112.
Sarananda, K. 1999. Country paper - Sri Lanka, Report of the APO Seminar on Appropriate Postharvest Technologies for Horticultural Crops in Asia. Bangkok-Thailand, 230-236.
Shahzad, M. & Abdulai, A. 2019. Production Risk Management in Agriculture and Farm Performance in Rural Pakistan: Role of Adaptation to Climate Change. Atlanta, GA, Agricultural & Applied Economics Association Annual Meeting.
Shivantha, K. 2020. Sri Lanka Mirror. [Online] Available at https://srilankamirror.com/news/18389-locusts-attack-farmlands-in-kurunegala [Accessed 13 07 2020].
Sudarshan, G. M., Anand, B. & Sudulaimuttu, M. B. 2013. Marketing & Post-harvest losses in fruits: Its implications on availability and economy-A study on pomegranate in Karnataka. Int. Journal of Management and Social Sciences, 2(7), 34-43.
Sushil, M. 2012. Interpreting the Interpretive Structural Model. Global Journal of Flexible Systems Management, 13(2), 87-106.
Wanigasundera, W. & Atapattu, N. 2019. Chapter 5 - Extension reforms in Sri Lanka: lessons and policy options. In: S. Babu & P. Joshi, eds. Extension reforms in Sri Lanka: lessons and policy options. Washington, DC, United States: Academic Press, 79-98.
Wasala, W., Dharmasena, D. & Disanayaka, T. 2012. Physical characteristics and mechanical properties three commercially grown banana cultivars in Sri Lanka. Tropical Agricultural Research, 24(1), 42-53.
Wasala, W. 2014. Postharvest Losses, Current Issues and Demand for Postharvest Technologies for Loss Management in the Main Banana Supply Chains in Sri Lanka. Journal of Postharvest Technology, 2(1), 80-87.
Weerasinghe, W., Rajapaksha, E., Gunawardena, W. & Samarakone, T. 2020. Relationship between Management Practices and Calf Welfare in Mid-Country Dairy Farms in Sri Lanka. Tropical Agricultural Research, 31(1), 103-113.
Wilson, N. 1996. Supply chain management: a case study of a dedicated supply chain for bananas in the UK grocery market. Supply Chain Management: An International Journal, 1(2), 28-35.
Zakharchenko, O. 2017. Ecological Risks in Agriculture: Problem-Oriented Approach. Business, Management and Accounting, 3(1), 12-18.