Impact of Revenue Generated via Composting and Recycling of Wastes Produced in the Greenhouse Tomato Supply Chain on Reducing Income Inequality: A Case Study of Türkiye

Abstract

Investigating the potential impacts of composting and recycling wastes on income distribution is crucial to promote a fairer and more sustainable fresh tomato supply chain (FTSC). Therefore, this study aims to explore the potential of generating extra income from recycling of tomatoes waste generated along the FTSC, and to analyze the impact of that extra income on reducing income inequality among the FTSC actors. Data were collected from 136 greenhouse tomato producers, 60 wholesalers, 18 exporters, 120 domestic retailers, 22 overseas retailers, and 3 recycling facilities in Türkiye. Marketing cost, absolute marketing margin, relative marketing margin and net profit margin were used to economically analyze the FTSCs. Research results showed that the net profit share of the producers decreased with the increasing number of intermediaries. Additionally, revenue generated from composting and recycling of product loss and wastes increased the welfare of greenhouse producers more than the other supply chain actors. When taking into account the revenue generated from composting and recycling of wastes, the net profit of the producers increased by 9.85% at first FTSC, while it increased by 8.29% and 9.21% in the second and third FTSCs, respectively, compared to the prevailing conditions. The retailers were benefitted more from the extra revenue generated via composting and recycling of wastes compared to the wholesalers and exporters. However, the income gain of the domestic retailers and wholesalers from recycling was more when compared to the overseas ones. Close cooperation between producers, wholesalers, exporters, retailers, and recycling facilities is essential for the effective implementation of waste recycling initiatives. Organizing training and education programs focused on waste management can increase the extra income that producers and active intermediaries in FTSCs can generate from composting and recycling of tomato wastes. Offering financial incentives, grants, or subsidies can encourage producers and other actors within the supply chain to adopt waste recycling practices. Continuous research and innovation are crucial in identifying and developing new technologies, processes, and strategies to minimize food loss and waste. Introducing fair-trade practices may help to balance the income distribution among FTSC actors.