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Paradigm of Cold Chain Management Systems

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Published: Wed, 04 Apr 2018

The New Paradigm Of Cold Chain Management Systems And It’s Logistics On Tuna Fishery Sector In Indonesia

  • Grasiano Warakano Lailossa

 

Abstract. The Cold chain management is an important element in ensuring standards of quality and safety of fishery products. Trend Quality standard requirements quality ,safety and traceability of fishery products are getting higher and the global effect, this causes to the need for a new paradigm of the cold chain management application as appropriate the trend. The results of the review previous studys show, the application of cold chain management are still partial and not yet fully integrated in the whole process (Post harvest handling, processing and packaging, cold storage and distribution, refrigerated transportation, marketing of fishery products). This paper provides a new paradigm offers cold chain management by systems integration approach. The output of this integration model will be expected to improve the competitiveness exports of Indonesian fishery products(Tuna`s)

Key Words: Cold chain management,Indonesian Fishery Poduct,Tuna

Introduction. Cold chain system application is one way to preserve quality standard and safety of food products. Cold chain system or usually named with cold chain management is one of cold chain system which designed to guarantee whole process, starting from capture process/harvest, cultivation until product distribution less until it consumed, it will be continuously intact and according to desired functional standard. there are three basic standard: Quality, Safety and Traceability.

One of the most significant constraints is the high level of post harvest losses. Post harvest losses as a result of a poor cold chain implementation in the industry are cited fifteen to twenty percent from the primary producer to retail outlet. See Figure 1

Figure 1 : Cold Chain Management (source: : http://www.iaph.uni-bonn.de/Coldchain/)

Cold chain Specifically, a supply chain or logistics network is the system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources,raw materials, and components into finished products that are delivered to the end user. In sophisticated supply chain systems,used products may re-enter the supply chain at any point where residual value is recyclable

A cold chain is a temperature-controlled supply chain; it is a concept resulting from specific needs related to the transformation and distribution of temperature-sensitive products(] J.P. Emond,2008)

To manage the cold chain effectively we need to beware of what the drivers for change are along the food supply chain and be able to adapt to them(W Paul Davies,2003), Professor Davies lists the drivers of change as:

  • Consumer Tastes and behaviour
  • Competition and production efficiency
  • Advances in technology
  • Institutional pressures and regulatory requirements
  • Environmental considerations
  • International and globalisation influences
  • Political influences

We see this occurring globally as food supply chains compete aggressively with each other and buyers source products whenever and wherever it gives them advantage.

Indonesian Fishery Sector. Indonesia is the biggest tuna-producing country in the world, contributing 15 percent of global tuna production in 2009, followed by the Philippines, China, Japan, Korea, Taiwan, and Spain. The main commercially caught tuna species in Indonesia are skipjack (62% of total tuna landings), yellowfin (29%),bigeye (7%), albacore (1%), and Southern bluefin (1%). The fishing grounds for Indonesian tuna fall under two convention areas, Indian Ocean and Western Central Pacific Ocean (WCPO). The Western Central Pacific Ocean currently supports the largest industrial tuna fishery in Indonesia, contributing almost 80 percent of total Indonesian commercial tuna production, while Eastern Indian Ocean contributes 20 percent (FAO 2010).

Tuna products are the second biggest Indonesian fishery product export, after shrimp, contributing 14 percent of total export value, about USD 352 million, in 2009. The main markets for tuna exported from Indonesia are Japan (35%), the United States (20%), Thailand (12%), European Union countries (9%),and Saudi Arabia (6%) (MMAF 2010).

Indonesia is also one of the major suppliers to markets in the United States and Japan. As the biggest fresh and frozen tuna supplier to the US, Indonesia contributes about 27 percent (or about 13 thousand tonnes) of the total US fresh and frozen tuna import in 2010, valued at USD 112 million (NMFS 2011).

According to data from MMAF and JICA (2009), yellowfin tuna catches has showed downward trend, in 2000, total catch of yellowfin tuna reached 163,241 tonnes, but since then it tend to decrease and dropped to 94,406 tonnes in 2006, though in 2007 it started to recover again with 103,655 tonnes catch. Indian Ocean (Indian Ocean, Western Timor Sea, Bali Strait and Sawu Sea) used to be the main catching areas for yellowfin tuna. Almost 54% of total yellowfin tuna in Indonesia was caught from this area. In the eastern part, Sulawesi Sea and Pacific Ocean was the important catching areas for yellowfin tuna, covering 33.7% of total yellowfin tuna landings,followed by Flores and Makassar Strait (18.2%) and Moluccas Sea, Tomini Bay, and Seram Sea (12.4%) ,see Figure 2

Figure. 2. Yellowfin Tuna Landing Distributin per Fishery Management Areas (WPP) in 2004 (source: Indonesian Tuna Supply Chain Analysis, Sustainable Fisheries Partnership,2010)

In general, Maluku-Papua contributes the biggest landings of albacore, bigeye tuna, and yellowfin tuna,with 26 percent of total Indonesian tuna landings, followed by North Sulawesi (24%), Bali-Nusa Tenggara (16%), South Sulawesi (12%), North Java (10%), and West Sumatra (8%) (Note: for Bali-Nusa Tenggara, North Java, and West Sumatra, the landings also include Southern bluefin tuna). Since tuna resources are abundant and scattered around Indonesian waters, fishing grounds and landing areas of tuna in Indonesia are dispersed. A significant volume of tuna is unloaded in Muara Baru (Jakarta) and Benoa (Bali); three other fishing ports that carry tuna are Bitung, Ambon, and Sorong, see Figure 3.

Figure 3. Major Ports of Tuna Fisheries in Indonesia (source: : Sustainable Indonesian Tuna Initiative,White paper, Sustainable Fisheries Partnership,2011)

Indonesian Tuna Supply Chain. Supply chains for most of the fish species start from oceans and end up with consumer markets far from thousands of miles. Asupplychainis a network of retailers, distributors, transporters, storage facilities andsuppliersthat participate in the production, delivery and sale of a product to the consumer (Harland, 1996),

In the Indonesian tuna value chain, four main categories of operators can be distinguished:

  • Fishermen
  • Fish landing sites and ports
  • Middlemen
  • Processors/exporters , See Figure 4

Figure 4. Indonesian Tuna Supply Chain, (source : Indonesian Tuna Supply Chain Analysis, Sustainable Fisheries Partnership,2010)

According LEI Wageningen UR (Arie Pieter van Duijn, Rik Beukers and Willem van der Pijl) in CBI Report – The Indonesian seafood sector,2012, The bottlenecks for the Indonesian tuna industry occur at several stages of the value chain. Because pro-cessors and exporters mainly depend on the catches of the Indonesian tuna fleet, it is essential to opti-mise the potential of the fishing fleet. Better handling and storage of tuna can produce more high-quality tuna for export, benefitting processors and exporters too and preventing the need to further exploit tuna stocks. As there are many small landing sites, it is also crucial that tuna landed at these sites can be transported efficiently.

Although several exporters of frozen and canned tuna are already EU certified, there is still potential to help small exporters meet EU requirements. Furthermore, there is a growing de-mand for sustainable and eco-labelled tuna in the EU market, which could have potential for Indonesian ex-porters. Also the lack of traceability throughout the entire value chain implies that support for fishermen, middlemen and processors/exporters is required.(CBI Report – The Indonesian seafood sector, A value chain analysis, LEI Wageningen UR ,2012)

Indonesia contributes about 4 percent of total global fresh and frozen tuna exports, exporting about 65.5thousand tonnes in 2007, valued at USD 150 million. Indonesia also contributes more than 4 percent of total global canned tuna exports, exporting about 52.4 thousands tonnes in 2007, valued at USD 151.9 million (Globefish, 2010).

Indonesia was the leader of countries supplying tuna to Japan (mainly yellowfin and bigeye), sending about 20 thousand tonnes per year to Japan’s market. Indonesia only contributes about 2 percent (9,800 tonnes in 2008) of total canned tuna imported to the EU market.

Exports of frozen Yellow fin tuna (in various product types) from Indonesia have increased in the last five years. In 2006 USD 13m was exported, while in 2010 the export value has more than doubled to USD 31m. Most of the frozen Yellow fin tuna is exported to the US.

However, MMAF export statistics show that for the total export of frozen tuna (Yellow fin tuna as well as other species), export values were significant-ly higher. In 2010 the export value of frozen tuna to Japan was USD 22m, while exports to the US amounted to USD 18m. Other species that are exported as tuna will most likely concern Bigeye tuna.

Methods. This paper based on paper review and some flelds study, This paper is a continuation of the first paper that presented at an international seminar on december 2nd APTECS 2010

Result And Discussion

Integrity Cold Chain Systems. According to Jean-Paul Rodrigue,et all,2009, functionally, there are three elements that integrate within the cold chain system:

  • Product. a product is characterized by physical attributes requiring specific temperature and humidity conditions. These conditions dictate its transport, which takes place in a manner that does not undermine its physical attributes to an extent that is judged acceptable. Otherwise, the product loses a share or the entirety of its commercial value. It mostly relates to how perishable and fragile a product can be; how it handles the cold chain process.
  • Origin / Destination. a function of the respective locations where a temperature-sensitive product is produced and consumed. It is indicative of the potential difficulty of making a product available at a market, which for a long time was an important constraint. Because of advances in cold chain logistics, it became possible to use increasingly distant sourcing strategies spanning the world.
  • Distribution. The methods and infrastructures available to transport a product in a temperature-controlled environment. It can involve temperature controlled containers (reefers), trucks and warehousing facilities.See Figure 5
  • Conditional demand. The demand of a product at a market (or place of consumption) is conditional to its qualitative attributes.
  • Load integrity. Relates to the load conditions that must be provided to insure that a product keeps its value during transport and accounting its perishability.
  • Transport integrity. The series of tasks and safeguards that must be performed to insure that the temperature controlled environment remains constant (Jean-Paul Rodrigue,et all,2009)

Figure 5. cold chain system element`s (source: Jean Paul Rodrigue, Claude Comtois and Brian Slack,”The Geography of Transport Systems,” Second Edition,New York,2009)

Bootlenecks for the export Indonesian Tuna

Globalization makes no more will limit both in regional and international, but on the other hand the application of and determination standart food safety is tight.More stringent standart of food safety applied making no other choice for business community fisheries and the whole stack holder, to try to fulfill standart who need, if they want to keep survive,The cases of rejection of fishery on the destination country exports can be seen on a table 1

Table 1

Totality of the rejection cases on fishery product

Country

1999

2000

2001

2002

2003

2004

2005

Uni Eropa

127

152

174

429

252

332

259

Jepang

181

246

29

USA

667

1927

1505

2282

1644

Kanada

170

121

125

174

459

445

404

(source, Ababouch 2006)

In CBI Report – The Indonesian seafood sector,a value chain analysis, by LEI Wageningen UR (Arie Pieter van Duijn, Rik Beukers and Willem van der Pijl).2012, there was some weakness logistics system and value chain, especially of Tuna of fishery sector in Indonesia, four different categories of influencers and supporters can be distinguished:

  • Government authorities (MMAF, Ministry of Trade)
  • Research institutes (Agency for Marine and Fishery Research and Development, SFP)
  • Producer and exporter associations (ATLI, ASTUIN, Indonesian fish cannery association, AP5I)
  • Other supporters and influencers (LPMHP, Ice factories, WCPFC and IOTC)

Six bottlenecks have been identified as a result of the desk study, the field work and the discussions at the strategic conference:

  • Handling and cold storage of tuna after catching
  • Traceability (EU-catch certificates/E-logbook)
  • Eco-labelling
  • Trade barriers of exporting tuna to the EU
  • Lack of capacity for small/medium processors to do market intelligence
  • Fluctuating tuna catches

To more clearly can be seen from figure 6 below:

C:UsersuserAppDataLocalMicrosoftWindowsTemporary Internet FilesContent.WordNew Picture.png

Figure 6. The Indonesian tuna value chain and its bottleneck (source : Sustainable Indonesian Tuna Initiative, White paper, Sustainable Fisheries Partnership,2011)

Risk Analysis and HACCP. The following factors which influential are Risk Analysis process (Risk Assessment, Risk Management and Risk Communication) and Hazard Analysis Critical Crisis Point (HACCP) is doing assessment and identification to against threat of potential danger that will arise to every cycle stage((Grasiano.W.Lailossa., 2010)

The new paradigm changes in the application of Risk Analysis and HACCP should also be an important thing in the application of cold chain systems integration., on the other side of synergism and interaction between government and business must go well in the entire cycle from harvest until arriving at the consumer. Figure 7 bellow is the one form of interaction between the government and food company

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Figure 7. Interaction between the government’s and industry’s food safety activities ,modified from Jouve et al., 1998.(Source : H. H. Husset et al,” Assessment and Management of Seafood Safety and Quality,2003)

Conclusion. Research on modeling of cold chain system, tend to make emphasis on cases which partial, means more focus on case model with every partial approach on four primary domain that already says above (standard and regulation, risk analysis modeling and cold chain management modeling/ refrigerated transport modeling), in other side, cold chain system is one cycle which systemic, so that optimization problem from cold chain system cannot be observed as partial from every domain, but it must be holistic and systematic (Grasiano.W.Lailossa., 2010)

The study and review show that New Paradigm to Developed Cold Chain System,must be based on Change the paradigm that integrated and synergism of the whole stack holder who later applied continuously and consequent in the whole process starting from harvest to consumption

The new paradigm of integrated cold chain systems is how to create : Integated model of cold chain systems that have the ability of refrigeration optimally during the process of transport of frozen fish from catching on the sea to arrive at destination exports country. Refrigeration system that has capabilities with the flexibility to continue to maintain the temperature of the products according to standards in charge, able to adapt to external variables that continue to influence will change sometimes even ekstirm due to the path or track that will be going through during the process of refrigerated transport.

The Cold chain systems variabel should have the ability to affect of refrigeration during transport due to a temperature difference, optimization of variables that affected the refrigeration systems due to transport processes that can reduce cooling capabilities so it can not maintain the desired temperature

References

C. M. Harland, “Supply Chain Management, Purchasing and Supply Management, Logistics, Vertical Integration, MaterialsManagement and Supply Chain Dynamics”. In: Slack, N (ed.) Blackwell Encyclopedic Dictionary of Operations Management UK: Blackwell,1996

Food and Agriculture Organization (FAO), FishStat-Capture Production 2010, Fishery Statistics.2010

Grasiano.W.. Lailossa,“Cold Chain System (Future Research Prespective),” proceeding the 2nd.International Seminar On Applied Technology, Science, and Arts(APTECS), ITS, Indonesia,2010

H. H. Huss, L. Ababouch and L. Gram,” Assessment and Management of Seafood Safety and Quality,”, FAO Fisheries Technical Paper 444,FAO,Rome,2003

Indonesian Tuna Supply Chain Analysis, Sustainable Fisheries Partnership,2010

Jean Paul Rodrigue, Claude Comtois and Brian Slack,”The Geography of Transport Systems,” Second Edition,New York,Routledge,2009

J.P. Emond, The cold chain, in: S.B. Miles, S.E. Sarma, J.R. Williams (Eds.),Chapter 11 of RFID Technology and Applications, Cambridge University Press,2008, pp. 1–2.)

L. Ababouch, “Detension and Rejection of Fish and Seafood at Borders of Mayor Importng Countries,”Food and Agriculture Organization, Italy,2006

LEI Wageningen UR, (Arie Pieter van Duijn, Rik Beukers and Willem van der Pijl),”The Indonesian seafood sector A value chain analysis”, Compiled for CBI by Ministry of foreign affairs of Netherlands,CBI Report,2012

Ministry of Marine Affairs and Fisheries (MMAF).. Indonesia Fishery Statistics, 2010

R. Schuurhuizen, “The domestic chain is still characterized by small-scale fishermen and it has been marginalized by the export supply chain” , 2006.

R. Schuurhurizen, A. A. D Van Tilburg, and E. Kambewa, “Fish in Kenya: The Nile-Perch Chain” Wageningen University, Department of Social Sciences, Marketing and Consumer Sciences Group, Wageningen, The Netherland, 2006.

Sustainable Indonesian Tuna Initiative, White paper, Sustainable Fisheries Partnership,2011

Western and Central Pacific Fisheries Commission (WCPFC). 2009. Stock assessment of yellowfin tuna in the western and central Pacific Ocean. Scientific Committee Fifth Regular Session, PortVila,Vanuatu,Aug.10-21,2009.


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