CHAPTER ONE

GENERAL INTRODUCTION

This study examines impacts of supply chain risks factors on cold chain logistics enterprises the case of fish by CONGELCAM, Bamenda. This chapter introduces the study and presents background to the study, problem statement, research questions, research objectives and hypotheses. It also delimits the study, state the significance of the study to various stakeholders, define key terms as they relate to the study and lastly shows organization of the study.

1.1. Research Context

A cold chain is a supply chain of perishable items, which protects a wide variety of food, pharmaceutical, and chemical products from degradation, improper exposure to temperature, humidity, light or particular contaminants to keep them frozen, chilled and fresh state (Bishara, 2006). Cold logistics supply chain is a series of operations comprising facilities for maintaining the ideal conditions of goods within a specific temperature range from point of origin to point of consumption (Tsai and Pawar, 2018). Also, cold chain is a post-production supply chain for temperature sensitive or perishable goods that are specifically designed to keep these products in an ideal condition of the environment. This design will maintain an optimal temperature and humility that guarantees the products safety, preserving the value and maximizing the commercial potential (Aworh, 2020). According Bremer (2018), the temperature range for cold chain product refers to its requirement between -18^oC deep froze and up to +14 ^oC. This idea for the usage of cold chain is to preserve the integrity, freshness and quality of the products to be available for consumers (Khan and Ali, 2021).

Electricity is a significant cost factor in cold chain businesses. Following the technological advancement, almost all service providers have turned to solar energy as an electrical substitute to the extent of environmental and infrastructure support. Therefore, using solar energy and electric vehicles is one of the best ways to achieve a sustainable green energy process. Alongside the usage of electric vehicles(Evs) instead of diesel vehicle engines, industrial refrigerators are much more contributing to the initiative (Snowman Logistics, 2023). Food retailers experience missing revenue growth targets, poor operating margins and inventory performance due to the impact of multiple risks across the cold chain such as lack of traceability, transport delays and breakdowns, temperature abuse, cross-contamination in transport and storage (Srivastava et al., 2015). Moreover, it has been estimated that about 20- 30% of perishable products are wasted at some point of the supply chain (Virtanen et al., 2014, Mena et al., 2014), excluding the waste in households, which is estimated to be 19% of all food purchased (Mena et al., 2014). Hence, to ensure food safety and quality across the cold chain and to improve performance of the cold chain, awareness and accessibility of product environment data from all stages of the cold chain has been emphasized (Kim et al., 2016).

Such data capture about the condition of the food products enables real-time monitoring and traceability across the chain (Ringsberg, 2014; Kelepouris et al., 2007) and supports risk management (Kim et al., 2016). Technologies for collection of digital data, such as Radio Frequency Identification (RFID) and Wireless Sensor Networks (WSN) have the potential to improve product traceability (Ringsberg, 2014, Raab et al., 2011) across the cold chain and to contribute effectively for risk control (Marucheck et al., 2011). Besides ensuring visibility, data capture and monitoring can bring additional benefits when combined with optimization models, for example to build optimal transportation plan (Wang et al., 2010) or storage plan (Raab et al., 2011) to reduce risks. Such application of data analytics, has received increasing attention in cold chain logistics due to its potential to improve flexibility, to effectively manage demand volatility, and handle cost fluctuations and thereby enable business organizations to make better decisions (Wang et al., 2010; Shi et al., 2010; Wang et al., 2012; Nakandala et al., 2016). For example, cold storage specialist Lineage Logistics uses data from sensors to adjust refrigeration systems, minimize temperature variability and ensure product integrity, transport lane optimization and product tracking for recalls. This also helps Lineage Logistics to reduce energy consumption (Whelan, 2015).

The cold chain for fresh food industry is a well-recognized work practice in developed countries, such as Canada, Japan, Germany and the USA (Deng et al., 2012); Hodges et al., 2011; Kitinoja, 2013). For instance, cold temperature slows down bacterial growth and reduces spoilage for the perishable produce (Coulomb, 2008; Ovca and Jevsnik, 2009). Kuo and chen (2010) and Montanari (2008) stated that temperature control of fresh produce across the entire supply chain during transportation and storage is critical for preserving product safety and value. Cold also helps to preserve the Vitamins of foods, fruits and vegetables, protein in meat from the field to the consumer (Salin and Nayga 2003; Zanoni and Zavanella, 2012). In addition, Flick et al.,(2012), Wang and Zhang (2008) and Qi et al.,(2014) all concluded that cold chain management can lead to an increase in produce shelf life and reduction in waste of produce. The current approach taken in developed countries to cold supply chain designs, which is considered a high technology cost approach, generally focuses on heavy investment in technology and infrastructure (Hodges et al., 2011; Kitinoja, 2013). It requires technologies such as pre cooling facilities, vacuum cooling, cold storage, refrigerated warehousing and refrigerated carriers as well as technical knowledge training for operational staff to ensure temperature compliance along the entire supply chain.

In Ontario, certain cases were even reported of fish products having to be recalled by companies due to their contamination by clostridium botulinum bacteria which could infect consumers with botulism (Inspection.gc.ca., 2017). In Scotland, similar potential contamination prompted the recall of several products which had been repackaged in premises which had not been approved by food standards agencies (BBC News, 2017). It is also important, therefore, to consider the safety aspects of supply chain products, especially those relating to the possible contamination of perishable products.

Taking Indonesia as an example, the eastern part of the country, in contrast to its western regions, enjoys abundant fish supplies. Imbalances in fresh fish distribution to the local processing industry (The Jakarta Post, 2016) have exacerbated disparities in fish consumption, while also creating an east-west regional discrepancy in the price of fish products. Indonesia is currently actively encouraging higher domestic rates of fish consumption as a means of satisfying the nutritional needs of its people more effectively (Amnifu, 2017). Achieving this goal will require balanced fish consumption across the country, an objective which can only be achieved through the appropriate distribution of fish products. Indonesia is one of the most extensive maritime nations in the world consisting of approximately 17,504 islands, 3.1 million m of water constituting 64.97% of the country’s total surface area, and the second longest coast line at 95,181 km (World Resources Institute, 2012).

Given this geographical profile, fisheries constitute one of the country’s most important economic sectors. In 2012, the industry was second only to that of China in terms of production, while Indonesia’s aquaculture business was the fourth largest in Asia (FAO, 2016). The country’s wild-catch fisheries production total approximately 5.9 million tonnes in 2016, the second largest in world, with an export value of USD 3.78–4.17 billion (California Environmental Associates, 2018). With such a significant economic value, fisheries constitute one of the 26 most important economic sectors in Indonesia, accounting for 2.0% to 2.5% of total gross domestic product (GDP).

The potential of the fisheries sector is supported by high consumption, both domestic and international, of its products as confirmed by the fact that total global fish consumption reached 140.8 million tonnes in 2013 (FAO, 2016). However, while high demand exists for fishery products across the world, the related supply and distribution processes remain problematic.  In order to manage such issues, the Indonesian Ministry of Maritime Affairs and Fisheries aims to develop a logistics system, the National Fish Logistics System (Sistem Logistik Ikan Nasional, abbreviated as SLIN). This logistics system constitutes whole fish supply chain management which oversees the procurement, storage and distribution of fish products from locations enjoying abundant supplies of fish to areas with high demand for fish products (Azhar et al., 2018). According to the Indonesian Ministry of Maritime Affairs and Fisheries (2014), the main objective of this system is enhanced performance of the domestic fish supply chain, by addressing issues of price discrepancy and volatility, inadequate supplies to meet demand and finally logistical inefficiency.

The implementation of fish supply chain management which seeks to satisfy national requirements and identify solutions for the mismatch between the supply and demand for fisheries products represents the main focus of SLIN (Azhar et al., 2018). While the main goal of the SLIN centres on utilisation of the national fish supply chain to achieve nationwide balanced fish consumption, in other parts of the world similar systems also address the issue of food safety. As fish constitute highly perishable produce, their movement within a supply chain requires effective management, especially when consumption of a specific product occurs a great distance from its place of origin.

The United Nations Food and Agriculture Organization (FAO, 2015) reported that, especially in developing countries, food losses occur mainly in the post-harvest circulation stage and are due to inappropriate postharvest handling and poor cold chain, transport, and climate control resulting from a lack of appropriate logistics infrastructure and of knowledge of how to handle perishables (Goedhals-Gerber and Khumalo, 2020). Therefore, appropriate and uninterrupted temperature control from harvesting, slaughter, or fishing to the market is important to preserve the original organoleptic properties of food, maintain food safety, reduce waste, minimize the risk of foodborne diseases, and improve the overall economic performance of the cold chain. In addition, ensuring a suitable humidity environment for foodstuffs is important for reducing water loss and maintaining the sensory quality of fresh agro-products, which directly affects consumer buying decisions, market prices, and sales volume and thus affects the overall economics of the food industry.

Inappropriate humidity is not conducive to maintaining the quality and safety of fresh foods; for example, low humidity not only increases moisture loss and accelerates the deterioration of sensory quality (e.g., pigments, colors, and texture) but also reduces the thawing efficiency for frozen foods. High humidity promotes the growth of bacteria, thereby enhancing the incidence of disease and decay, especially for meat products.

In Malaysia, it has been estimated that about 40 percent of all food requires a cold chain (Bremer, 2018), though, the issue of food loss persists in industrial and developing countries at all stages in the supply chain. In most developing countries, cold chains remain underdeveloped, where most countries would increase the food production to offset the loss to meet the increasing customer demands rather than applying technological advances (Gligor et al., 2018). Kaipia et al., (2013) estimated that around 35 percent of food loss is due to the whole supply chain process, which originated from the production site to the retailer. Similarly, the situation occurs in Malaysia, where the amount of food waste needs to be addressed (Naidu, 2017), where some of the food is still consumable (Bernama, 2016).

In Malaysia, it is expected that the yearly growth rate of industries that rely on cold chain logistics from the year 2015 to 2020, would be 5 to 10percent (Tan & Li, 2018). However, the cold chain service adoption offering in Malaysia is relatively low, and thus, the cold chain services need to be pulled by customers instead of the providers, which will push the service to the market. In the cold chain industry, the food waste problem is well recognized, and there is limited employment, especially in developing countries (Gligor et al., 2018; Shashi et al., 2018). Nevertheless, few efforts are made to explore the reasons for the limited adoption of cold chain technology in developing countries like Malaysia. Furthermore, there is a small number of logistic providers that dare to offer Cold Logistics Supply Chain, and the reason behind their brave decision to offer these services is still under-explored.

In Africa, Ouma et al., (2017) identified poor infrastructure, lack of financing, inadequate technical knowledge and limited market opportunities as the main risks factors affecting cold chain logistics. Furthermore, a study by Dakora et al., (2019) found that the lack of proper temperature measurement and control systems, inadequate infrastructure, insufficient capital and low awareness of the importance of cold chain logistics.

In Nigeria, the Post-harvest loss alliance for Nutrition (PLAN) contributed to building capabilities and leadership in Nigeria’s agribusiness and food system by developing and sponsoring the integration of cold chain system technologies into the operations of selected businesses within the Plan network. A cold chain is a temperature-controlled supply chain. Nearly 94 percent of all wasted foods is a direct result of insufficient supply chains (world economic forum 2014). An unbroken cold chain is an uninterrupted series of refrigerated production, storage and distribution activities, along with associated equipment and logistics, which maintain a desired low-temperature range. Efficient cold chains preserve and extend the shelf life of products such as fresh agricultural produce, seafood, poultry, meat, ice cream, frozen foods. An estimated 55% of fruits and vegetables,35% of fish and seafood is lost or wasted due cold chain infrastructure (FAO, 2011). Reducing food losses will also reduce food shortages, lower price volatility in off seasons and contribute significantly to the national economy by reducing dependence on imports thus cold chain development is paramount to improving food and nutrition security in Nigeria.

In Cameroon, the Cameroon established cooperation with international organizations like the World bank (WB), United Nations Food and Agricultural Organization (FAO), sub regional bodies like COREP (Gulf of Guinea Fisheries Commission). To seek opportunities for concerted action for the execution of projects geared towards improving on the resources. Recent projects include the SLP (Sustainable Livelihood Programme), Revision of the Fisheries Legislation, elaboration of action plan to fight IUU (Illicit, undeclared, Unregulated fishing), elaboration of action plan for COREP, elaboration of Plan for Development of Aquaculture (FAO, 2007). In Cameroon there has been all along, no policy document for the fishery sector. Instead we find many documents geared towards improvement of the sector (Chiambeng & Ngoande, 2011).

Cameroon attained independence in 1960 and between that date and 1969 the fisheries sector was administered by services of both the Ministry of Livestock with respect to captured fisheries and the Ministry of Rural Development with respect to inland fisheries and aquaculture. A Department of Marine Fisheries was created in the Ministry of Livestock in 1969 while inland fisheries and aquaculture remained attached to the Ministry of Agriculture. Under the impulsion of the Department of Fisheries, Law N0/74/12 relative to the Maritime Fishing code was voted and promulgated in 1974 (ACPFISH-II, 2011). Fish like most seafood is a very rich source of protein and plays an important role in food security as a source of food as well as livelihood for millions of people worldwide. In many developing countries like Cameroon, fish is mainly for direct human consumption in all corners and parts of Cameroon as an important source of animal proteins in the diet of both rural and urban households indicating a good future for the fishing sector.

The sale of these fishery products has many constraints such as; the scarcity of products, the seasonality of the activity, supply difficulties (the difficulties of transporting fish from foreign countries to Cameroon and surrounding countries), the problems of distribution of these products by refrigerated trucks in the various regions and cities often very distant and the massive investment necessary for this activity (As an example, we see the construction of multiple branches and many cold rooms to keep the products, which are extremely perishable). This dissertation will focus on identifying and analyzing the risk factors of in-transit shipment of perishable goods throughout the cold supply chain and this will assist in continuously improving the cold supply chain, accomplishing the ultimate goal for every perishable retailer by delivering cheaper, better and moving products, that are not only safe but also of top quality to happy end consumers.

1.2. Statement of the Problem

In Cameroon, frozen fish and rice are the main staples massively imported. Cameroon imports of frozen fish went from 252,214 tons in 2014 to 292,675 tons in 2018. Despite 40,461 tons increase over a 4-year period, there is still not enough frozen fish to meet the national demand estimated at about 400,000 tons yearly. Figures from the Ministry of Livestock, Fisheries and Animal Industries (MINEPIA, Business Cameroon 2020) showed that Cameroon imports about 200,000 tons of fish every year to complement the low national production and these imports cost the country about 170 billion FCFA yearly (Business in Cameroon Magazine, 2020). CONGELCAM owns a lion share of about 80% frozen fish imports with 50.6% of its imports coming from African markets like Mauritania, and Morocco. According to data disclosed by the National Institute of Statistics (INS 2019), CONGELCAM’s imports still affected Cameroon’s import expenses in 2019, though frozen fish imports dropped by 21.8 billion FCFA (14% in relative). Moreover, information from Cameroon’s Postline magazine (April, 2012) quoted “Cameroonians pay a lot for poor quality fish” and prove could be seen in the recent sealing of nine of CONGELCAM’s fish shops on August 14^th 2021 by the anti-fraud brigade attached to the Ministry of Trade.

One of the problems identified at CONGELCAM Bamenda on the quality of fish is poor management skills. The main risk factor of the poor quality of fish gotten from CONGELCAM’s distribution centers. This is attributed to the aspect of familiarity and with little or no value given to training in logistics management skills. Majority of workers do not know basic logistics tools like forklifts, pallets, conveyance robots and the cold chain inventory management technique like Just in time management best suited for perishables. They also do not know of the storage temperature range regulated by MINEPIA in Law extract n°94/01 of 20^th January 1994 governing forests, wildlife and fisheries under the Title V: For Fishing (2); Storage and Sales Establishments: Cold rooms or storage facilities equipped in such a way as to be able to maintain the products previously frozen at a temperature at least equal to 20°C below zero (-20°C). Moreover, there is a weak enforcement of regulations by MINEPIA stakeholders on storage facilities. That is, the Ministry’s delegate in charge of organizing controls every week are usually giving incentives so as to let go of discrepancies found at the distribution centers. This issue results in degrading fish quality and increases the number of spoiled frozen fish bought by customers and moreover cause health issues.

Also, CONGELCAM’s activities have been greatly affected by the COVID-19 pandemic wherein borders were closed and their source of supply limited to the African market leading to shortages in the Cameroonian market, causing drops in income and quality (staffs being unable to undergo special training programs on logistics management techniques and the health of staffs are as well affected). Furthermore, overexploitation of foreign markets affects supply and the quality of fish gotten. This lead to the increase use of several chemicals in boosting the growth of fish so as to keep supplying the market.

CONGELCAM employees do not respect buyer-consumer rights nor do they have business ethics. Most large-scale customers made it known to the researcher that the vendors are being given incentives so as to select cartons of quality to be given to them and they even pay for the product without even seeing it yet with a notice written on their receipts as non-refundable. This goes against the FIFO (First in First Out) rule for perishable goods and goes as well against the right of consumers to choose and impacts small-scale buyers negatively.

1.3. Research Questions

The following main and specific research questions guide this study.

1.3.1. Main Research Question

What is the impact of supply chain risks factors on the quality of fish at CONGELCAM, Bamenda?

1.3.2 Specific Questions

• What is the impact of delivery risk factors on the quality of fish at CONGELCAM, Bamenda?
• How does human risk factors affect the quality of fish at CONGELCAM, Bamenda?
• Does environmental risk factors affect the quality of fish at CONGELCAM, Bamenda?

1.4. Research Objectives

This study sets out to investigate the following main and specific objectives.

1.4.1. Main Objective

The main objectives of the study is to assess the impacts of supply chain risk factors on the quality of fish at CONGELCAM, Bamenda.

1.4.2. Specific Objectives

The specific objectives of the study seeks to:

1)  Investigate the impact of delivery risk factors on the quality of fish at CONGELCAM, Bamenda.

2)  Determine the impact of human risk factors on the quality of fish at CONGELCAM, Bamenda.

3) Critically analyse the impact of environmental risk factors on the quality of fish at CONGELCAM, Bamenda.