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Supply Chain Uncertainties of Small-Scale Coffee Husk-Biochar Production for Activated Carbon in Vietnam

Author

Listed:
  • Alessandro Flammini

    (United Nations Industrial Development Organization, Department of Environment, Industrial Resource Efficiency Division, Vienna International Centre, 1400 Vienna, Austria)

  • Erik Brundin

    (Department of Industrial Management and Logistics, Lund University, 21100 Lund, Sweden)

  • Rikard Grill

    (Department of Industrial Management and Logistics, Lund University, 21100 Lund, Sweden)

  • Hannes Zellweger

    (Sofies-Emac, 8008 Zurich, Switzerland)

Abstract

Between 2014 and 2019, an innovative small-pyrolysis system (the PPV300) using agrowaste as feedstock was transferred and adapted from Switzerland to Vietnam by a United Nations Industrial Development Organization (UNIDO) project. The coffee husk resulting from the processing of coffee beans is usually disposed of in Vietnam or burned inefficiently to dry coffee beans. Small-scale pyrolysis of coffee husk using the PPV300 avoids smoke emissions and local air pollution while providing an energy source for coffee drying and biochar as a by-product. This paper investigates the uncertainties in the “coffee husk to activated carbon” supply chain in Vietnam and discusses the pros and cons of different supply chain setups using a framework derived by Chopra and Meindl (2013). According to the analysis, a number of actors (an intermediary without previous direct involvement in the coffee supply chain, a coffee processor, or a hybrid between farm and processor), each with advantages and disadvantages, would be suitable from a supply chain perspective to attain an efficient strategy that would keep the price of the biochar low. However, in order to be attractive for one activated carbon producer, several PPV300 systems are needed to reach a significant economy of scale. Sufficient husk sourcing and storage capacity is also needed. If the purpose is simply to produce biochar for activated carbon, processors and intermediaries could consider a simpler and cheaper design than the PPV300. In conclusion, supply chain uncertainties and economic viability can be optimized when the PPV300 is used by coffee processors or intermediaries, who are able to make use of the co-products generated (biochar, heat, and wood vinegar). In addition to its financial viability, all of the other co-benefits of this technology should be taken into consideration (reduced smoke and environmental pollution, avoided health costs, greenhouse gas savings, etc.) for a proper assessment of its economic attractiveness.

Suggested Citation

  • Alessandro Flammini & Erik Brundin & Rikard Grill & Hannes Zellweger, 2020. "Supply Chain Uncertainties of Small-Scale Coffee Husk-Biochar Production for Activated Carbon in Vietnam," Sustainability, MDPI, vol. 12(19), pages 1-27, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8069-:d:421980
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    References listed on IDEAS

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    1. Giang N. T. Nguyen & Tapan Sarker, 2018. "Sustainable coffee supply chain management: a case study in Buon Me Thuot City, Daklak, Vietnam," International Journal of Corporate Social Responsibility, Springer, vol. 3(1), pages 1-17, December.
    2. Luis C. Blancas & John Isbell & Monica Isbell & Hua Joo Tan & Wendy Tao, 2014. "Efficient Logistics : A Key to Vietnam’s Competitiveness," World Bank Publications - Books, The World Bank Group, number 16320, December.
    3. Schmitt, Amanda J. & Sun, Siyuan Anthony & Snyder, Lawrence V. & Shen, Zuo-Jun Max, 2015. "Centralization versus decentralization: Risk pooling, risk diversification, and supply chain disruptions," Omega, Elsevier, vol. 52(C), pages 201-212.
    4. Nguyen Hung Anh & Wolfgang Bokelmann, 2019. "Determinants of Smallholders’ Market Preferences: The Case of Sustainable Certified Coffee Farmers in Vietnam," Sustainability, MDPI, vol. 11(10), pages 1-20, May.
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