1. Introduction
The supply chain management process (SCM) can be split into strategic SCM and operational SCM [
1]. Product development, manufacturing, customers, suppliers, and logistics are just some of the areas that fall under the horizon of strategic SCM [
2]. On the other hand, operational SCM’s primary goals are to streamline processes and improve customer service [
3]. There has been a great deal of interest in the SCM area in recent years, with numerous studies being conducted from an operational standpoint.
The term agri-food supply chain (AFSC) focuses on the stages of food, from production to the delivery of food items to the end consumer. During the last few years, the supply chain of agricultural products has seen a remarkable change in developing countries. Income growth is one of the reasons that has changed the metropolitan diet from low-quality food to high-quality organic food, such as dairy products, fruits, and vegetables, in both developed and developing countries [
4]. Because of the quality preferences of consumers, nations are now changing their production and distribution strategies to minimize food loss in the supply chain [
5]. AFSC differs from other SC activities since it involves dealing with perishable items by integrating different stakeholders.
Hunger and malnutrition continue to be major issues for a significant portion of the world’s population. As a result, food waste is linked to the waste of resources, such as water, energy, land, labor, capital, etc. [
3]. According to Food Loss and Waste Protocol About the Food Loss and Waste Accounting and Reporting Standard, 2019, food waste accounts for a quarter of all agricultural water use and approximately USD 1 trillion in economic losses each year. Moreover, food waste’s global and European supply chains. They mentioned that global per capita food waste or loss ranges from 194 to 389 kg, while European levels range from 158 to 298 kg, constituting 25% of all food purchased by households. One-third of all food produced globally is thrown away or lost due to food waste or loss. However, the more alarming fact is that as per the United Nations Environmental Program Food Waste Index (UNEPFWI), food waste at the consumer level is estimated to be doubled [
6].
Chauhan et al. [
6] mentioned that about half of all root crops, vegetables, and fruits worldwide are wasted during the process of getting from producers to end consumers. Numerous researchers [
7,
8,
9] have attempted to identify and quantify the causes of food waste at various levels. The majority of losses in the food or agricultural supply chain are believed to occur during the production, processing, and postharvest stages [
10]. According to Xue et al. [
11], 24% of food is wasted during production, 24% during harvesting, and 35% while consumption. Thus, approximately 80% of food is wasted during these three steps.
The inefficient supply chain system results in 1.3 billion tons of food waste worldwide [
12]. The overview of literature provides similar facts about China as well. Food wastage accounts for 70% of all waste in China, despite 128 million Chinese people living below the poverty line and being frequently short on food, resulting in annual waste of USD 32 billion [
11]. Similarly, 40% of the food produced in the United States is thrown away, resulting in a yearly loss of USD 165 billion [
13]. In India, 24% of families have gone a day without food. In both developed and developing countries, food waste occurs at every stage of the food supply chain, but the causes vary [
14]. In developing countries, food loss primarily occurs at the harvesting level. However, in the developed regions, this phenomenon is mainly observed at the consumer level due to food surplus or consumer behavior.
Pakistan is a developing nation in Asia that mainly relies on agricultural products for revenue [
15]. Despite being an agricultural country, it imports a variety of agricultural products from other countries each year, including wheat, sugar, and tomatoes [
16]. According to a UN report [
17], 49 percent of Pakistan’s population suffers from malnutrition, despite the country’s extensive agricultural land and favorable climate conditions. Over 16% of this deficiency is related to wastage [
17], mostly due to postharvest treatment. Consumer food loss has been given a high priority. However, postharvest food loss receives scant attention [
10], particularly in underdeveloped countries such as Pakistan. Additionally, there are a few studies that have examined the causes of food waste or secondary sources of damage to agriculture products in Pakistan’s AFSC process. The current study aims to bridge the identified gap and focuses on addressing the following questions:
- (1)
What are the main sources of agri-food waste at the postharvest stage?
- (2)
What corrective measures should be taken to minimize waste at identified sources?
The next section focuses on an overview of the literature, describing the methodology to conduct the study, explaining the results, and concluding remarks with implications.
2. Literature Overview
Sustainable supply chain management (SSCM) is a novel concept getting significant attention from researchers worldwide. SSCM enables firms to ensure efficiency in their operations [
2] and strengthens their potential to achieve excellence in logistics and resource consumption operations [
18]. It also helps firms to attain the United Nations Sustainable Development Goals (UNSDP) [
19], mainly the three-dimensional triple-bottom-line concept, i.e., economics, social, and environmental sustainability [
20]. While the world is fighting COVID-19-related issues, the shortage of fresh organic food items is a critical challenge for most of the world [
21]. According to Chauhan et al. [
6], 12% of the total population in the world is suffering from hunger. In such a scenario, understanding the problems in AFSC and focusing on enhancing production has crucial importance.
The supply chain of food has significant importance in the global food system and is considered its backbone. It plays a vital role in achieving the second goal of sustainable development by the United Nations, i.e., Zero Hunger, focusing on providing food to all individuals, achieving food security, and improving nutrition [
22]. Thus, for this purpose, a holistic approach must be followed involving all components of AFSC. Moreover, substantial steps must be taken to minimize food waste to achieve this goal [
23].
2.1. Food Waste and Loss
Food loss and waste are two different concepts. According to Irani et al. [
24], food loss refers to the loss in the initial supply chain of food, i.e., from planting to the processing stage. On the other hand, food waste occurs in the later stages, generally caused by the consumer due to their behavior. Bilska et al. [
25] termed food waste as any foodstuff produced but not consumed by humans. Generally, it is assumed that food loss or waste is the quantity of food that remains unused or is disposed of [
21]. However, the literature provides a broad picture of this phenomenon. Chauhan et al. [
6] divided food waste into five groups, i.e., food loss in the supply chain, the intention of food production, the difference in the quality and potential of production, the nature of food use, and surplus food at the destination.
As per the United Nations Environmental Program (UNEP), there is no significant difference in household food waste generation between high, middle, and lower-income countries. Pre-consumer food losses in developing countries are largely due to a lack of infrastructure and technical and financial constraints, market systems, and proper infrastructure [
1]. Post-consumer losses account for the vast majority of food waste. Food products purchased and consumed by consumers are called post-consumer in the context of AFSC. Poor planting material and old cultural practices during harvesting, storing, and transporting lead to the below-standard quality of Agri-products [
26,
27]. Due to the absence of adequate infrastructure and facilities and having no proper packaging method for Agri-products, sellers have to sell without appropriate packaging and primary processing.
According to the United Nations 2030 Agenda, food waste is a critical sustainability issue because of the social and environmental consequences it causes. It has also been thoroughly debated in the literature and by subject experts. However, these literature collections are still scattered and focus on a few specific concerns, such as waste quantification and waste causes. Furthermore, only a few studies have looked into waste-reduction techniques. Guarnier et al. [
28] conducted a study in Brazil to reduce food waste in the form of fruits and vegetables at the wholesaler and retailer levels. They concluded that logistical practices, mindfulness of consumers about food waste, and management control play critical roles in minimizing food waste and loss. Dabbene [
29] investigated the causes of food waste in the Indian perishable food supply chain and concluded that the lack of farmers’ approaches capitalizing on scientific methods at the harvesting level and a significant number of intermediaries in the AFSC are the leading causes of food loss in India.
Costa et al. [
30] studied food waste from a resilience perspective in Brazil. They concluded that leadership, knowledge management, communication, collaboration, innovation, supply chain design, and security technologies significantly reduce food waste, particularly during the COVID-19 situation. However, the poor financial situation and redundancy among stakeholders or related parties can increase food waste. Strotmann et al. [
31] linked food-waste minimization activities with the total quality management concept of plan-do-check-act (PDCA). They suggested the integration of employees in implementing measures to minimize food waste. Stranger and de Barcellos [
32] investigated the barriers and drivers for reducing food waste in the Brazilian food industry and categorized them into three factors, namely behavioral, personal, and societal factors. These variables can increase or decrease food waste in the food network. Göbel et al. [
33] stated that a significant portion of food is wasted in different stages of AFSC. In this regard, it is imperative to strengthen the communication level among all stakeholders to develop a sustainable food system. Since multiple stakeholders are involved in AFSC, Bilska et al. [
25] suggested that parties be brought under an umbrella and joint efforts should be undertaken.
2.2. Challenges Posed by COVID-19
Countries with middle- and high-income populations are seeing alarming increases in edible food being wasted [
34]. Overbuying and other changes in consumer behavior are major contributors to food waste [
11]. The COVID-19 outbreak has created four key concerns in the food sector and food supply chain. A good diet is the first line of defense in keeping one’s health and immune system strong. As a result, there was an upsurge in the desire for bioactive food products [
35]. Secondly, there has been an increase in the focus on food safety because it is a major factor in preventing the spread of the coronavirus [
36]. Thirdly, due to lockdown constraints, food security has become a worry. Finally, the pandemic period has shown issues with food sustainability. Due to recent issues, there is a great deal of anxiety regarding the food supply chain these days [
37].
The most pressing concerns within the food supply chain are securing materials and supplies and ensuring that food flows from manufacturers to end-users without interruption [
12]. This aspect faced major issues in the lockdown era, leading to delays in food supply and ultimately a significant increase in food waste. As far as the economy is concerned, the food business is critical [
21] and faces unique challenges. Concerns about food safety and shock resistance have been raised due to the COVID-19 epidemic disrupting supply chains in the food industry [
2]. It was estimated that one-third of the food produced each year for human use was thrown away before the COVID-19 epidemic. In addition to delays in harvesting and transportation, COVID-19 has resulted in more food being wasted [
34,
38]. The COVID-19 epidemic has caused huge upheavals [
39]. We have seen and felt acute food shortages in several circumstances. In multiple cases, food is wasted because it cannot get to the final user [
40]. Millions (and even billions) of gallons of milk being thrown away in an economic downturn and growing food scarcity raise concerns about how COVID-19 has impacted food waste along the supply chain [
41].
In addition to putting people’s physical health at risk, the coronavirus (COVID-19) pandemic has also put their mental health at risk [
42]. As a result of the pandemic, people’s behavior has become chaotic, including panic buying [
43]. Consumers have been stockpiling or buying food in a panic since it is a basic necessity [
40]. Unsustainable food production and consumption patterns have emerged due to this new norm and consumption pattern. The closure of hotels, restaurants, and schools has resulted in canceled orders and news stories about farms discarding food, increasing food waste.
During the global epidemic, food safety concerns have called attention to the huge infrastructure and labor necessary for creating a secure and reliable food supply worldwide [
44]. This worldwide crisis has seen substantial growth for food, especially in the early stages, resulting in overbuying vital supplies. As a result of this extraordinary demand, the food supply chain has remained strong, as many supply chain stakeholders have strived to replenish shelves.
2.3. Food Waste and Loss in Pakistan
Pakistan has very fertile land suitable for almost every type of crop cultivation. However, the government still has to import vegetables and other goods from one hundred plus countries for billions of dollars [
45] which adds to the trade deficit and pressurizes the dollar rate. It comes at 73rd position in the global food-security index [
46], despite having wheat, rice, and sugarcane bumper crop. Moreover, every third child faces malnutrition problems, raising the issue of physical and mental health in this region. Every fifth child will die soon after birth because the mother faces malnutrition problems [
47]. One of the primary reasons for such a devastating issue is food loss. This emerging economy produced over 325 mt of food [
47] and has lost over 36 mt [
48] postharvest, which comprises over 10% of the food produced.
According to a UN report [
17], in Pakistan, 49% of the human population faces malnutrition despite having a large amount of cultivated area and suitable climate conditions. For this malnutrition, more than 16% is due to wastage [
17], primarily due to postharvest treatment. Globally strict steps have been taken to face the challenges. However, in this region, this problem remains at a dangerous level. In 2015, for the first time in the country’s history, agriculture growth was negative (−0.7%), as farmers believed that producing less is better than wasting after putting in a lot of effort. Pakistan faces 30–50% damage to perishable goods until it reaches the final consumer. Such huge wastages put pressure on the cost of production, which has made the cost of production much higher than the neighboring countries.
4. Results and Discussions
This study focuses on identifying the causes of food waste and loss at a postharvest stage in Pakistan. Based on the interaction with farmers, distributors, transporters, and retailers, the authors identified six key sources of food waste in Pakistan AFSC at the post-harvest level, i.e., packaging and handling, lack of storage facilities, inadequate transportation and containers, skills and education of labor, the role of agent/distributors, and accumulated results.
4.1. Packaging and Handling
The respondents’ first and foremost evident aspect was inadequate packaging and handling facility at the farmers’ end and during supplies. All four groups, including farmers, distributors, transporters, and retailers, believe that the product’s packaging currently lacks skills from farmers and resources for a better packaging facility. In their study, Varghese et al. [
50] also termed poor packaging and mishandling of Agri-products as the major cause of damage caused to fruits, which ultimately results in less demand and waste. During the discussion, one of the respondents said, “
We put the vegetables in shopper and put it in the truck, only careful about heavy items should not be put above lighter ones”. Another respondent said, “
we cannot afford it financially and have to get better packaging material for the time.” Such tactics might help one partner to get some benefit; however, in the overall situation, it not only causes food loss but also creates a zero-sum scenario in whole supply chain activities.
Enquiring further revealed that plastic bags are still in practice and damage the products. Especially in the summer season, fruits and vegetables lose their freshness in plastic and reduce their shelf life. Even though legally, plastic bags are banned, using them is cost effective and time saving. One of the respondents from retailers explained that “when the food reaches us, most of the fragile vegetables and fruits packages contain a heavy portion of damaged and rotten items because they have been kept in plastic bags for over a day or even two”.
Another important aspect regarding packaging and handling was the labor’s inability and abundance of resources to handle the products swiftly or in the required manner. They usually dump the food in small crates and then put an excessive load on the bottom layer by building a pile. One of the respondents said that “
we have to make sure to load maximum in the vehicle, it saves some cost”. Packaging and handling have seen a lot of attention in previous research [
50,
51,
52,
53,
54,
55,
56,
57], and similar issues have been highlighted. However, the focus has been on technological solutions and effects on final products. Developing countries need different treatment for a sustainable food supply chain that can sustain itself during a global crisis such as COVID-19.
4.2. Lack of Storage Facilities
The respondents highlighted an essential issue of excess produce storage or a cross-docking facility where goods can be moved to different vehicles. All respondents believed that a storage facility is crucial as extra goods are usually sold in the local market at much lower prices or left to rot in the field. This reduces the supply to the central market and affects that price as the distributors (agents) tend to bridge the loss due to reduced quantity. This finding relates to Irani et al. [
24], who highlighted the role of managing food waste through food security in the form of the proper storage facility. One of the farmers said that “
the distributor doesn’t allow us to load extra and have something left at the field which cannot be sent to the market to be sold”. A transporter said, “
we cannot allow adding extra load as it gets us in traffic violations. We have to pay a fine for that. An adequate storage facility can be a better idea to accommodate extra products”. Amidst such issues, it is pertinent to mention that storage facilities can help store the different products and help the farmer store the crops for longer. Often, in developing regions, the vegetables (such as tomatoes, onion, and potatoes) become extremely expensive, leading to malnutrition for many households. Having a storage facility can help reduce that issue.
Another essential thing discussed in storage is the cross-docking facility on the highways and motorways. One of the transporters said that “
we have to reach to the main market and then take different products back from the main market to smaller towns: even though all of having traveled on the same route, we can shift the products in between, but have no facility.” Another instance of such response was when a retailer claimed that “
if we can have small facilities on highways, the transportation cost will reduce as well as time to reach the small markets. It will also reduce multiple products and the damage due to long transportation”. The storage facility can attract farmers to grow more and supply the primary market. Researchers [
58,
59,
60,
61] have given due attention to storage facilities freezing and controlled storage, but such advanced infrastructures are hard to implement in developing countries.
4.3. Inadequate Transportation and Containers
Further, the respondents highlighted issues related to transportation and the condition of containers used to move goods between markets. This finding confirms the critical role of transporters in food waste and damage identified by Bilska et al. [
25]. They stated that effective transportation plays a critical role in ensuring food safety and minimizing food loss. This factor provided multiple sub-themes related to transportation. First, the vehicles used to transport goods are old and poor. Due to their inefficient performance, the transporters charge less than transporters with up-to-date vehicles. This persuades farmers to use these poor-quality vehicles for lower costs. One such instance reported by the farmer was “
the transporters with new vehicles charge very much, and we cannot afford that, we choose the low-cost vehicle. We are not responsible for the damage to the product because distributors work to see that issue”. Such behavior where one supply chain partner is not interested in improving the supply network creates a poor fit.
Secondly, the road condition is also not good, especially those connecting the villages where farming is being performed. While cities are associated with wide highways and motorways, the road network in the suburbs is not good, which causes damage to the product. When poor road quality is combined with poor vehicles, it doubles the overall effect. One of the retailers mentioned that “you cannot imagine how we offload the vegetables; the bottom layers are almost untouchable due to the shocks and weight it has absorbed during movement. This causes food loss and lower supply in the market”. The transporter mentioned another instance: “unless a better rood network is built, vehicles cannot safeguard the goods. We do not buy new vehicles because these roads ruin them, and it costs us much more”. Under such circumstances, to improve the supply of goods, it is essential to build a better road network, and vehicles shall be forced to comply with standards. Thirdly, the issue of long breakages, construction work, and other matters, the lead time increases, and ultimately perishable goods suffer in quality.
4.4. Labor Skills and Education
Another critical issue highlighted was labor skills, education, and how well the laborers could perform their task. Considering the advancement in developed countries, this theme highlights that the lack of implementation of technological resources in developing countries has severe reasons. Specifically, need assessment is essential for such low-earning countries to make them more sustainable. For instance, one of the respondents said, “… and no matter how much we guide them, this labor cannot work according to the standards.” Another person said, “technical and vocational trained does not have any such course where farmers can learn to adapt to new technology or learn how to store and handle the products”.
4.5. Role of Agent/Distributor
Few of the respondents were also informed about manipulating the role of distributors, as they play the role of intermediary between farmers and retailers. In their study, Costra et al. [
30] and de Moreas et al. [
38] highlighted their prime role and suggested that agents and retailers also hold an important role in ensuring food safety. One of the farmers said, “
it all depends on the mood of the distributor if he wishes to pick up whole stock or leave some behind for us to manage; that increases waste”. Another retailer said that “
distributors manipulate the market by not bringing the goods to market or increase the rate on the name of farmers–and on top of that, there is no regulatory body who can manage them”. Such responses highlight that controlling such manipulation is vital to stabilizing the market.
4.6. Accumulated Results
Based on the above results, it can be summed up that packaging, handling, and lack of storage facilities are the leading causes of damage to perishable products. If these factors are adequately controlled, the ratio of food waste can be significantly reduced. As explained in the recommendation section, transportation damages decrease automatically if adequate packaging techniques are used. The product should be stored in cold storage until its buyer places the order. Transporting it after demand can quickly minimize the damages. The bumper crop can cause a large amount of waste surplus production without storage facilities resulting in its conversion into animal feed or fertilizer. Almost all crops that do not sell are wasted. The knowledge and education of retailers are also considered the cause of damage in perishables. An untrained uneducated stakeholder has lower chances of risk-taking and continues using traditional techniques for farming.
5. Conclusions, Recommendations, and Limitations
Food scarcity is not the root cause of world hunger. Currently, the food industry generates enough food to meet the needs of every person on Earth. However, every year, approximately a third of the food produced is wasted or spoils before it can be eaten, even though 820 million individuals encounter hunger worldwide and approximately USD 1 trillion worth of food is wasted every year. Post-harvest food loss is much more common in countries with low- and middle-income status, which is true even in the areas where we work. Food loss occurs when food is spoiled or destroyed during the distribution or supply chain, while food waste occurs when consumers or retailers discard edible food. According to the United Nations Food and Agriculture Organization (FAO), this trend could save sufficient food from sustaining two billion people. More than twice as many people worldwide are undernourished.
This study aimed to identify the causes of food waste in perishable goods and add value to the supply chain of vegetables and fruits by taking necessary measures during the distribution period. The distribution of vegetables and fruits takes a lot of stages to go through until it reaches the final user. Primarily, this market’s stakeholders are farmers, distributors, transporters, and retailers, and they perform their traditionally defined functions. The contemporary farmers do not pay much attention to the damages and consider it inevitable.
The results show two primary reasons behind the damage to perishable foods. First, the lack of storage or cold storage facilities is a crucial factor that should be enhanced to bring positive storage results that contribute to the perishing of goods. Secondly, inadequate packaging of perishables is practiced. If storage and packaging are ignored, the situation can lead to losses during transportation, and if the bumper crop is harvested, there will be no space for storing it and throwing it away in the dirt. Due to inadequate packaging, goods experience damage during transportation and loading–unloading. At each step of the supply chain, vegetables and fruits are wasted/damaged. Due to the unavailability of storage facilities, distributer, farmers, and retailers have to sell products as soon as possible at the lowest rates.
5.1. Managerial Implications
Managers can benefit from this study to practice their concepts in real situations to avoid wastage. Less wastage means more preservation and higher production. The percentage of wastage shows a less managerial impact on production. Thus, lean management can be achieved through effective storage and handling implications. At the same time, factors that are ignored in the whole process can be emphasized on an individual level to increase productivity. These measures are not hard to adapt, whereas it has just become the market’s trend to follow conservative steps.
Structural changes are needed at different levels of the supply chain. The public–private partnership, government, cooperative, technology provider, and media can significantly increase supply chain performance. They can help in lacking infrastructures such as cold storage facilities, transportation, road networks, communication, and information technology that are essential requirements for better results in the supply chain. Demand forecasting is the requirement for improving efficiencies in the supply chain. The imbalance between supply and demand is due to poor forecasting. Sometimes, vegetables are not plucked from the farm due to the lack of demand. Sometimes, the price is boosted because produce is unavailable. Governments must facilitate the creation of infrastructure facilities for the marketing of fruits and vegetables in the state. Governments must incentivize farmers, distributors, transporter, and retailers who want to invest in infrastructure buildings such as cold storage facilities and specialized vehicles in the form of subsidies and interest-free loans.
To facilitate better delivery of output, provide better infrastructure, and enhance public interest and awareness regarding new technologies, necessary coordination of farmers through business cooperative and contract farming is advised. Another immediate requirement is customized logistics to make logistics effective. This will maintain the quality of the food, reduce cost, and fulfill the requirement of the target customer. A horticulture board must establish to provide a back-end subsidy of some percentage amount for cold storage construction and modernization. Governments should also provide subsidies on electricity for cold storage and the horticulture sector. Better coordination between different stakeholders, from farmers to end final user requirements of the information system, is needed. For this purpose, internet and mobile communication provider can play an important role.
Finally, partnerships between the private and public sectors are also an available solution. Facilities such as packaging, washing, sorting, grading, storage, handling facilities, and finance availability can add value to supply chain functioning. Governments must promote the creation of food and technology parks to promote agricultural industries. They are creating initiatives in cluster areas where the processing of agriculture products is predominant. These clusters provide common facilities essential for farming industries like warehouses, cold storage, water treatment plants, etc.
5.2. Limitations and Future Recommendations
The scope of research was a limited one because of the scale of the study. The study involves a total sample of twenty respondents, which may be viewed as a restriction limiting the generalization of the result. Moreover, most respondents were technically uneducated and did not understand the terminologies determining sharing data. Most people working in the industry have learned by trial and error. The research can be extended to the next level by eradicating all the limitations. Along with expanding the participants’ number, future studies are recommended to conduct more detailed interviews and focus-group sessions to have a more comprehensive understanding of the problem. Another critical recommendation to extend this research is to make it more quantifiable than just qualitative research. More vivid results might be shown by quantitative analysis.