A facility solution required to incorporate cold sterilisation in the supply chain of citrus exported to Europe

Abstract

This document describes a Final Year Project (BPJ 420) required by the University of Pretoria in partial fulfilment of Systems and Industrial Engineering. This report describes the solution to an identified problem encountered by the South African Citrus Industry with the assistance of Citrus Growers Association (CGA). This project entailed a thorough study of the citrus supply chain, facility and capacity planning of cold storages used for citrus exports through the Durban Harbour. The South African Citrus Industry is currently facing a phytosanitary risk of False Codling Moth (FCM) that might prevent the industry gaining further global market access. FCM is only detected in Africa and stricter bio-security protocol measures imposed by the European Union (EU) can prevent further exports to their markets. South Africa exports almost fifty million citrus cartons to the EU, which approximate 40% of all citrus fruit per year at an estimated amount of R15.7 billion in 2015/2016 based on exporting prices (DAF, 2016). Current prevention measures are in place that includes: a System Approach (Moore and Hattingh, 2013) and Nuclear-based Sterile Insect Technique (SIT) (IAEA, 2017), although research has shown that cold sterilisation is the best FCM prevention measure. The aim is to identify facility solution required that would ensure that South Africa meets the regulations imposed by the European Union (EU) to prevent FCM from spreading to their countries. Northern South African farms, packhouses, cold storages in Durban and Transnet Durban Port Terminal were visited to obtain information. The data acquired is used to adhere to cold sterilisation protocols when identifying current cold room facilities. The cold storages are divided into two types either a pre-cooling or forced air-cooling (cold sterilisation treatment) chamber. The capacity is determined with three conditions: Prototype model 1: Current citrus production 2017 Prototype model 2: Forecasted demand for 2020 Prototype model 3: Forecasted demand for 2020 including all fruit volumes exported to the EU Industrial Engineering (IE) techniques are used to approach, analyse and develop a possible solution. A Process Flow Diagram is drawn to illustrate key role players in the citrus supply chain. A Method Study portrays the detail of the citrus processes compiled in the Literature Review. The focus of this project would entail a thorough Facility Planning analysis of the cold storage operations in Durban. This study determined the current 38 300 pre-cooling and 13 350 forced-air cooling capacity. The CGA provided 2020 forecasts of citrus export through Durban Harbour. The forecasts are based on tree census data, bud-wood sales, land availability, climatic conditions and historic production since 2012. It is calculated for Prototype Model 2 that in 2020 the demand will be 45 543 precooling and 15 404 forced-air cooling pallet slots. The additional capacity required is 1085 pre-cooling and 1416 forced air-cooling facilities. This is a moderate growth expected annually. Prototype Model 3 is calculated if the European Union imposes stricter protective measures with 45% extra volumes to undergo cold sterilisation treatment in 2020. It is calculated that the demand to cold sterilise the extra volumes will be 43 602 forced aircooling pallet slots and pre-cooling facilities will be in excess of 21 710 pallet slots. However these facilities can be converted into forced-air cooling facilities to accommodate space restrictions in the CBD. The required 29 614 forced air-cooling pallet slots can either be transformed in current cold storages or new cold storages should be built in Elangeni, Kwa-Zulu Natal an Industrial Zoned area. The cost involved to facilitate this forced-air cooling chambers to either convert current facilities or develop new would amount R531 129 915.00. A Trade-off Analysis is used to compare the current and additional cost per 15 kg carton to undergo cold sterilisation treatment. An increase per carton of R18.28 would accumulate to a total of R519 116 500.00 additional annually for all citrus fruit exported to the EU. In conclusion of this Final Year Project is the result subjective to condition. The current forced air-cooling facility in Durban will not accommodate cold sterilisation treatment for extra volumes in 2020 if the European Union enforces stricter protocols. The increased overheads involved is not a viable solution and would be in the best interest of the South African Citrus Industry to prove different measures with research done to prevent False Codling Moth without imposing cold sterilisation treatment.