Volume 18, No. 6, 2021

Methodological Proposal To Identify The Physical Losses In The Argentinean Dairy Value Chain


CRAVERO, Ricardo A. , CAPOBIANCO URIARTE, M. Mercedes and ORTIZ FERNANDEZ, Piedad

Abstract

The Argentinean dairy value chain (ADVC) processes around 10 billion litres per year, with an annual turnover of USD 8.993 billion in factory dispatch. However, physical losses (PL) represent approximately USD 250 million per year when the entire chain reports USD 184 million in profits. This research aims to identify physical losses in the dairy value chain as an opportunity to gain productivity, competitiveness and sustainability. A survey in the ADVC carried out through surveys consisted of semi-structured interviews with dairy company representatives and a specific questionnaire. The survey included one-third of the companies in the sector (577), representing almost 80% of the total raw milk processed, during 2018 and 2019. The descriptive-quantitative analysis made it possible to analyse and interpret the data collected to provide alternatives for improvement arising from identifying the origins, causes, and factors of physical losses in the dairy value chain. The results obtained show that the primary origin of PL in the ADVC is generated in the processing stage and is mainly caused by "Human errors" due to Training, Internal communication, Automation level, Operating instructions, PL Policy and Culture. Finally, the study concludes that companies can improve their performance, become more competitive and sustainable by prioritising management actions before investing and providing a framework to implement the necessary changes.


Pages: 1121-1130

Keywords: dairy goods, physical loss reduction, top management decision-making, semistructured interviews, waste management, cleaner production

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