The circular economy in the agricultural industry

In recent years, there has been a lot of information about the circular economy in the agricultural industry as a sustainable alternative to generate profitable businesses that have less negative environmental impact, making better use of natural resources for reuse in new products that extend the useful life of raw materials. 

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Given that more and more ecologically conscious companies are focused on incorporating the circular economy into their businesses, the purpose of this article is to explain what the circular economy is all about and how it can be applied in the agricultural industry appropriately and profitably.

What is the circular economy?

The circular economy is presented as an alternative to the linear model of production and consumption. It makes it possible to respond to the challenges of current economic and productive growth since it promotes the circular flow of extraction, transformation, distribution, use, and recovery of materials and energy from the products and services available on the market.

The term circular economy was first used in 1980 to describe a system of interrelationships between the economy and the environment. At present, the advantages of this model are mainly aimed at a considerable reduction of carbon dioxide and waste to generate more sustainable business models by improving the supply chain with the application of regenerative agriculture that captures more carbon.

The objective of the circular economy is to achieve a sustainable economic model, in which actions move from the current linear schemes to one in which waste is not directly associated with waste, but can be used as raw materials for new processes in agricultural development. 

In other words, it seeks to recycle or reuse materials and products for as long as possible. This model is also interested in addressing global challenges such as climate change, loss of biodiversity, pollution, and waste management.

Use of renewable energies in the agricultural industry.

The circular economy encompasses much more than the production and consumption of goods and services since it allows the change from fossil fuels to the use of renewable energies. Following this slogan, the circular economy poses the problem of what to do with the waste generated with the traditional linear model of production and consumption to reduce the environmental impact.

Implementing a model based on circular economy indicators makes it possible to measure the degree of circularity in waste management, which will highlight the sustainable key of balancing the economic, environmental, and social aspects. For this reason, the circular economy proposes a sustainable approach that seeks to develop applicable strategies for the entire production chain and the use of products and services.

More than ever, companies today, thanks to environmental awareness, are choosing to adopt sustainable models that use fewer resources and, therefore, generate less waste for the environment. The reality of this change in business paradigm seeks to promote the use of renewable energies for the reuse of materials that can add value.

In this regard, the circular economy is an appropriate model to provide value to the agricultural industry, since it would help save and reuse a lot of resources and raw materials for production and consumption, but in a way that is beneficial for the health of human beings. Let's not forget that linear models are more polluting and are not necessarily more efficient and profitable.

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Circular economy strategies for the agricultural industry.

As we have pointed out so far, the circular economy aims to develop a sustainable business model for the recovery of materials that can be disposed of by linear economies. The big step is precisely to transform waste into raw material. To achieve this, the new model is implementing a series of strategies, of which we mention the most important below.

1. Reducing carbon dioxide emissions by generating less waste.

Global greenhouse emissions are exceeding 30 billion tons of carbon dioxide. A switch to renewable energy can reduce 55% of global greenhouse gas emissions. However, that 45% would still need to be taken care of. It is in this context that the circular economy can bring about real change.

According to the study “Completing the Picture: How the Circular Economy Tackles Climate Change”, 45% of emissions is the most complex to reduce, but thanks to land management, that is, agriculture, and the production of goods and more sustainable services, such as electric vehicles, would be a good alternative to eliminate almost half of the emissions from the production of goods.

This could estimate that in 2050, carbon dioxide would be reduced by 9.3 billion tons. The industry is currently responsible for 21% of carbon dioxide emissions; while the production of four materials (plastic, cement, steel, and aluminum) constitutes 60% of the emissions of that gas.

Therefore, if the principles of the circular economy were applied, these emissions could be reduced considerably by 2050. Similarly, applying these principles to food production could reduce 5.6 billion tons of carbon dioxide emissions. Now, what are those principles on which the circular economy is based to reduce CO2?

The 3 general principles are:

• Apply the design to reduce waste and emissions throughout the supply chain.
• Keep products and materials in use to conserve energy in their production.
• Regenerate carbon sequestration systems in the soil and products.
  

2. Practice recycling and reuse of raw materials and materials.

The circular economy applied to the agricultural industry seeks to increase the use of residual biomass (agricultural surplus) by 5% as a source of energy in the production of new products. As waste represents a problem for the environment due to the pollution it causes, the circular model promotes the recovery of materials considered garbage.

In other words, it deals with transforming natural resources into renewable resources that prolong the life cycle of products, which will also help curb the emission of greenhouse gases and will allow companies to save a great deal of capital on new resources, while you can, reuse the same materials.

3. Sustainable development in the production and marketing chains that will generate a reduction in environmental impacts.

As agriculture is undoubtedly the sector with the greatest potential for applying the principles of the circular economy, it will be possible to develop more sustainable products that reduce the environmental impact in the production chain. One of these strategies is the inhibition of gas emissions for the benefit of carbon sequestration.

According to calculations by technology company Indigo Ag, there is huge potential for carbon capture through improved farming methods. In this sense, if the organic matter content of all the world's farmland increased from a current average of 1% to a pre-industrial level of approximately 3%, it would result in the absorption of 1 trillion tons of carbon.

This is the equivalent of all industrial emissions produced since the industrial revolution. No other economic sector has this revolutionary potential to absorb as much atmospheric carbon as the agricultural industry applying the circular economy.

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