Vegetable Losses and Waste Along the Supply Chain and Farmers' Willingness to Pay for Recycling: Towards a Green Supply Chain

Abstract

The aims of the study were (i) to determine amount of the vegetable losses and waste generated along the supply chain by production system such as under greenhouse and conventional system in open area, (ii) to explore the amount of willingness to pay for recycling vegetable losses and waste by composting and its determinants, (iii) to reveal the economic feasibility of composting vegetable losses and waste at district level and (iv) to calculate the individual and social cost of vegetable losses and waste along the supply chain by production system in Turkey. The farm level research data were collected from 81 conventional farms and 45 greenhouse farms in the Samsun province of Turkey by using questionnaires. In addition, 50 traders and 17 greengrocers, 13 supermarkets and 9 local marketers were interviewed. When quantifying vegetable losses and waste in mass, vegetable supply chain was examined in five different stages such as production, postharvest handling and storage, processing and packaging, distribution and retail. Contingent valuation method was used to asses willingness to pay of farmers, traders/merchants in wholesale market hall, greengrocer and super markets for composting of vegetable losses and waste. The economic feasibility of recycling of waste was revealed by using the net present value, cost-benefit analysis and internal rate of return. According to the research findings, the loss rates of vegetables produced per hectare in the greenhouse at the farm, wholesaler and retailer levels were respectively 2.2%; 1% and 20.3%. The loss rates of vegetables produced per hectare in the conventional farm at the farm, wholesaler and retailer levels were 3%, respectively; 0.9% and 16.8%. The individual loss of producers in the examined area was 0.67 thousand US $/year. The rates of individual loss of farms to annual agricultural income were 1.7% and 2.4% in greenhouse and conventional farms, respectively. Other individual losses in wholesales, retailer and consumers were 0.25, 4.89 and 1.02 thousand US $, respectively. The total social loss in the examined area was 6.83 thousand US $. When an assessment was made at the national level, the social loss was about 4% of the annual agricultural income. According to the research results, it has been concluded that depending on the amount of losses, the compost production facility to be established in the district can economically recycle vegetable losses and wastes.