Abstract

One of the key focuses in the development of the Sustainable Development Goals (SDGs) is environmental sustainability. A critical indicator within the SDGs framework is Food Loss and Food Waste (FLFW). Food loss in the upstream supply chain presents a significant challenge, particularly in the agricultural and fisheries sectors, which are characterized by highly perishable products. Shrimp farming within the supply chain also encounters food loss issues due to the perishable nature of shrimp, its sensitivity to weather conditions, and time constraints. Given these challenges, targeted actions are essential to address the issue, including the development of strategies to reduce food loss and maintain shrimp quality. Stakeholders must recognize the urgency of this matter to ensure the establishment of clear standards for managing food loss across the supply chain. This initiative aligns with the broader objectives of the SDGs. The novelty of this study lies in its use of a system dynamics approach—a systematic method capable of modeling complex systems such as the shrimp supply chain. The objective of this study is to formulate and identify strategies that can be implemented by supply chain actors to reduce food loss in the shrimp supply chain in South Sulawesi Province. This study proposes two strategies: Good Supply Chain Practice and the Circular Economy. Among these, the Circular Economy strategy is recommended as the most effective, with an estimated food loss reduction of 44,188.37 kg.