Risk Mitigation Strategies in the Tomato Supply Chain

Abstract

Tomatoes produced by smallholders in the summer season in Uzbekistan provide a significant part of the population’s demand for tomato products. However, tomato production in smallholders is based on the principles of the free market economy and is operating at high risk. The paper aims to assess and reduce the level of risks associated with infrastructure, financial, natural and environmental, farm management and political changes among entities in the smallholder tomato supply chain. Uncertainties related to producer, buyer, infrastructure, finance, natural and environmental, management and political changes are taken into account in the assessment of risk levels. These threats were assessed using Fuzzy Linguistic Quantifier Order Weighted Aggregation (FLQOWA) model. The obtained results showed that the level of risk arising in production, cooperation, infrastructure and financial issues was high. At the same time, measures to reduce risk levels were taken in the study. According to the results, application “written contract” and “insurance” to collaborative relationships to reduce risk levels has been shown to reduce risks until 0.6 coefficients. The results obtained from this investigation will have a positive effect if policy makers use the applications to increase the economic cooperation between the subjects in STSC.