A mathematical optimisation model for analysis of minimal cropland expansion in agro value chains

Jaya Prasanth R. V., Denny K. S. Ng, Raymond R. Tan, Viknesh Andiappan, Wan Yoke Kin

Research output: Contribution to journalArticle

Abstract

Increasing population, accelerated urbanisation and rise in income generation have led to the increased concern on sustainable production and consumption of food. This has put severe stress on farmers and plantation owners to rapid expansion of crop lands and plantations to meet the demand. However, the expansion has resulted in large scale unplanned deforestation. The proposed work presents a Mixed Integer Linear Programming (MILP) model to strategies for minimal crop land and plantation expansion based on the predicted future demand of agro-products. The proposed model is based on the concept which used previously to strategies operation of utility systems. In this work, the proposed model is used to determine the minimal lands for expansion (if required) when there is an increased demand. However, if the demand of the agro-product is projected to decrease, then the model identifies the optimised excess existing crop land(s) or plantation(s) that can be removed from the value chain. Based on the optimised result, the cost involved in expansion (i.e., deforestation and planting costs, etc.) and the transport cost can be determined. The selection of truck capacity for the optimised logistics of the agro products from the cropland to the processing facility can also be determined. By minimising the total cost (expansion cost and transport cost), the area of expansion and transportation distance can be minimised to meet the increased demand requirement, thereby resulting in lesser environmental impact. Note that, the model provides strategic optimisation for expansion of croplands and tactical optimisation for the logistics between crop lands and processing facility. A palm oil value chain is solved in this work to illustrate the proposed model. Five different scenarios with increasing and decreasing palm oil demands were solved and their respective results are discussed. The scenarios analyse the expansion in different types of lands — grasslands, tropical forests and peat forests. It is noted that the model selected grasslands over the other land types due to their least expansion cost and Land Use Change (LUC) tax rates; showing that the proposed approach promotes sustainability through cost. At higher palm oil demands scenario, apart from grasslands, tropical or peat forest lands are also seletected for expansion. Sensitivity analysis of increasing palm oil demand on expansion cost and LUC tax rates on total cost is also presented.

LanguageEnglish
Pages178-191
Number of pages14
JournalSustainable Production and Consumption
Volume20
Early online date18 Jun 2019
DOIs
Publication statusE-pub ahead of print - 18 Jun 2019

Fingerprint

cost
Palm oil
plantation
Costs
crop
Crops
oil
grassland
deforestation
land use change
Deforestation
peat
logistics
Peat
Taxation
Land use
land type
analysis
demand
Logistics

Keywords

  • Agriculture lands and plantations
  • Agro-value chain
  • Deforestation
  • Land use change
  • Minimum expansion
  • Mixed integer linear programming

ASJC Scopus subject areas

  • Environmental Engineering
  • Environmental Chemistry
  • Renewable Energy, Sustainability and the Environment
  • Industrial and Manufacturing Engineering

Cite this

@article{72c695a24db545259b17b81cca10c091,
title = "A mathematical optimisation model for analysis of minimal cropland expansion in agro value chains",
abstract = "Increasing population, accelerated urbanisation and rise in income generation have led to the increased concern on sustainable production and consumption of food. This has put severe stress on farmers and plantation owners to rapid expansion of crop lands and plantations to meet the demand. However, the expansion has resulted in large scale unplanned deforestation. The proposed work presents a Mixed Integer Linear Programming (MILP) model to strategies for minimal crop land and plantation expansion based on the predicted future demand of agro-products. The proposed model is based on the concept which used previously to strategies operation of utility systems. In this work, the proposed model is used to determine the minimal lands for expansion (if required) when there is an increased demand. However, if the demand of the agro-product is projected to decrease, then the model identifies the optimised excess existing crop land(s) or plantation(s) that can be removed from the value chain. Based on the optimised result, the cost involved in expansion (i.e., deforestation and planting costs, etc.) and the transport cost can be determined. The selection of truck capacity for the optimised logistics of the agro products from the cropland to the processing facility can also be determined. By minimising the total cost (expansion cost and transport cost), the area of expansion and transportation distance can be minimised to meet the increased demand requirement, thereby resulting in lesser environmental impact. Note that, the model provides strategic optimisation for expansion of croplands and tactical optimisation for the logistics between crop lands and processing facility. A palm oil value chain is solved in this work to illustrate the proposed model. Five different scenarios with increasing and decreasing palm oil demands were solved and their respective results are discussed. The scenarios analyse the expansion in different types of lands — grasslands, tropical forests and peat forests. It is noted that the model selected grasslands over the other land types due to their least expansion cost and Land Use Change (LUC) tax rates; showing that the proposed approach promotes sustainability through cost. At higher palm oil demands scenario, apart from grasslands, tropical or peat forest lands are also seletected for expansion. Sensitivity analysis of increasing palm oil demand on expansion cost and LUC tax rates on total cost is also presented.",
keywords = "Agriculture lands and plantations, Agro-value chain, Deforestation, Land use change, Minimum expansion, Mixed integer linear programming",
author = "{R. V.}, {Jaya Prasanth} and Ng, {Denny K. S.} and Tan, {Raymond R.} and Viknesh Andiappan and Kin, {Wan Yoke}",
year = "2019",
month = "6",
day = "18",
doi = "10.1016/j.spc.2019.06.004",
language = "English",
volume = "20",
pages = "178--191",
journal = "Sustainable Production and Consumption",
issn = "2352-5509",
publisher = "Elsevier",

}

A mathematical optimisation model for analysis of minimal cropland expansion in agro value chains. / R. V., Jaya Prasanth; Ng, Denny K. S.; Tan, Raymond R.; Andiappan, Viknesh; Kin, Wan Yoke.

In: Sustainable Production and Consumption, Vol. 20, 10.2019, p. 178-191.

Research output: Contribution to journalArticle

TY - JOUR

T1 - A mathematical optimisation model for analysis of minimal cropland expansion in agro value chains

AU - R. V., Jaya Prasanth

AU - Ng, Denny K. S.

AU - Tan, Raymond R.

AU - Andiappan, Viknesh

AU - Kin, Wan Yoke

PY - 2019/6/18

Y1 - 2019/6/18

N2 - Increasing population, accelerated urbanisation and rise in income generation have led to the increased concern on sustainable production and consumption of food. This has put severe stress on farmers and plantation owners to rapid expansion of crop lands and plantations to meet the demand. However, the expansion has resulted in large scale unplanned deforestation. The proposed work presents a Mixed Integer Linear Programming (MILP) model to strategies for minimal crop land and plantation expansion based on the predicted future demand of agro-products. The proposed model is based on the concept which used previously to strategies operation of utility systems. In this work, the proposed model is used to determine the minimal lands for expansion (if required) when there is an increased demand. However, if the demand of the agro-product is projected to decrease, then the model identifies the optimised excess existing crop land(s) or plantation(s) that can be removed from the value chain. Based on the optimised result, the cost involved in expansion (i.e., deforestation and planting costs, etc.) and the transport cost can be determined. The selection of truck capacity for the optimised logistics of the agro products from the cropland to the processing facility can also be determined. By minimising the total cost (expansion cost and transport cost), the area of expansion and transportation distance can be minimised to meet the increased demand requirement, thereby resulting in lesser environmental impact. Note that, the model provides strategic optimisation for expansion of croplands and tactical optimisation for the logistics between crop lands and processing facility. A palm oil value chain is solved in this work to illustrate the proposed model. Five different scenarios with increasing and decreasing palm oil demands were solved and their respective results are discussed. The scenarios analyse the expansion in different types of lands — grasslands, tropical forests and peat forests. It is noted that the model selected grasslands over the other land types due to their least expansion cost and Land Use Change (LUC) tax rates; showing that the proposed approach promotes sustainability through cost. At higher palm oil demands scenario, apart from grasslands, tropical or peat forest lands are also seletected for expansion. Sensitivity analysis of increasing palm oil demand on expansion cost and LUC tax rates on total cost is also presented.

AB - Increasing population, accelerated urbanisation and rise in income generation have led to the increased concern on sustainable production and consumption of food. This has put severe stress on farmers and plantation owners to rapid expansion of crop lands and plantations to meet the demand. However, the expansion has resulted in large scale unplanned deforestation. The proposed work presents a Mixed Integer Linear Programming (MILP) model to strategies for minimal crop land and plantation expansion based on the predicted future demand of agro-products. The proposed model is based on the concept which used previously to strategies operation of utility systems. In this work, the proposed model is used to determine the minimal lands for expansion (if required) when there is an increased demand. However, if the demand of the agro-product is projected to decrease, then the model identifies the optimised excess existing crop land(s) or plantation(s) that can be removed from the value chain. Based on the optimised result, the cost involved in expansion (i.e., deforestation and planting costs, etc.) and the transport cost can be determined. The selection of truck capacity for the optimised logistics of the agro products from the cropland to the processing facility can also be determined. By minimising the total cost (expansion cost and transport cost), the area of expansion and transportation distance can be minimised to meet the increased demand requirement, thereby resulting in lesser environmental impact. Note that, the model provides strategic optimisation for expansion of croplands and tactical optimisation for the logistics between crop lands and processing facility. A palm oil value chain is solved in this work to illustrate the proposed model. Five different scenarios with increasing and decreasing palm oil demands were solved and their respective results are discussed. The scenarios analyse the expansion in different types of lands — grasslands, tropical forests and peat forests. It is noted that the model selected grasslands over the other land types due to their least expansion cost and Land Use Change (LUC) tax rates; showing that the proposed approach promotes sustainability through cost. At higher palm oil demands scenario, apart from grasslands, tropical or peat forest lands are also seletected for expansion. Sensitivity analysis of increasing palm oil demand on expansion cost and LUC tax rates on total cost is also presented.

KW - Agriculture lands and plantations

KW - Agro-value chain

KW - Deforestation

KW - Land use change

KW - Minimum expansion

KW - Mixed integer linear programming

UR - http://www.scopus.com/inward/record.url?scp=85067936582&partnerID=8YFLogxK

U2 - 10.1016/j.spc.2019.06.004

DO - 10.1016/j.spc.2019.06.004

M3 - Article

VL - 20

SP - 178

EP - 191

JO - Sustainable Production and Consumption

T2 - Sustainable Production and Consumption

JF - Sustainable Production and Consumption

SN - 2352-5509

ER -