New Sustainable Banana Value Chain: Waste Valuation toward a Circular Bioeconomy

Abstract

According to the needs of sustainability, a new sustainable banana chip value chain, which is a combination of the traditional banana chip value chain and the banana waste value chain, was designed. Scenarios were created assuming that an anaerobic digester would be implemented to produce biogas—which can act as a substitute for liquefied petroleum gas (LPG) used in banana processing—from banana wastes. The values of banana residues throughout the value chain were determined depending on farm gate tree price, transportation cost, and the final value of LPG substitution. The value chain was optimized using two objective functions: total chain profit maximization and factory profit maximization. The tree price at the farm gate was determined and assumed to be between USD 0.067 and USD 0.093 per tree, and the transportation cost of tree transportation was assumed to be between USD 0.31 and USD 0.39 per km. Different tree prices and transportation costs affected the profits of all stakeholders throughout the chain. The scenarios that maximized total chain profits showed superior environmental performance compared to the scenarios that maximized factory profits. The proposed sustainable value chain will lead to an increase in farmers’ profits of 15.5–17.0%, while the profits gained by collectors and factory will increase between 3.5 and 8.9% when compared to business as usual.

Keywords

• agricultural residue
• circular economy
• closed loop supply chain
• anaerobic digestion
• mathematical model