The perma-crisis of European agrifood systems, still plagued by unsustainable production costs, restores relevance to the Ellen MacArthur Foundation ‘s (UK) reflections on the circular economy in agrifood systems.
Indeed, the report ‘Food circular design study‘ (2021) highlights how the circular economy is a compelling necessity for the economic sustainability of enterprises and supply chains in the medium and long term. (1) Here’s how.
1) Agrifood systems and economic sustainability, premise
Economic sustainability-substantial premise of all agri-food systems-is threatened by both geopolitical factors (resource access conflicts and obstacles, e.g., water, soil, energy, fertilizer), distortions in markets (e.g., monopolies and speculation), and environmental factors (e.g., the drought and desertification, extreme weather events).
Environmental factors are in turn interdependent, to a large extent, on agribusiness policies and the choices of the players in their supply chains. (2) In fact, agri-food systems are attributed one-third of globalGreenhouse Gases (GHGs) emissions, as well as more than 50 percent impact on biodiversity loss. (3)
3) Business-as-usual vs. circular economy
Data emerging from some research-while inevitably approximate, in the complexity of systems and correlations-indicate that the impact of food production on public health, environmental and economic costs would be double their value. (2)
A transition of agrifood systems, according to the Ellen MacArthur Foundation, could theoretically lead to the reduction of up to half of the aforementioned costs, about $5.7 trillion globally. (4) Moving from a linear ‘take-make-waste‘ model to a circular economy model.
4) Food circular design, the Ellen Mac Arthur Foundation report.
‘The big food redesign: Regenerating nature with circular economy‘ highlights the crucial role of large industrial and retail groups in the ecological transition of food systems, towards a circular economy model.
Forty percent of the Utilized Agricultural Area in the EU, according to the Ellen MacArthur Foundation report, depends on the choices of ten giants alone. Which are now part of the problems mentioned above but could become part of the solution, and benefit from it.
5) Food circular (re-)design
Food circular (re-)design
is the approach proposed by the Ellen MacArthur Foundation to apply the circular economy to agrifood systems starting with the re-design of consumer products.
A common thread for research and innovation, involving those who actually dominate the value chain to trace back upstream the ingredient and packaging material production chains, (5) all the way to primary agricultural production.
The economy-before the ESG criteria (
Environmental, Social, Governance
) that even today impose on an increasing number of operators the
Corporate Sustainability Reporting
(CSR) – is the essential logic to follow.
6) Reformulating food for sustainability.
The model proposed in this report considers the reformulation of food-and the choice of its ingredients-as a key to promoting the circular economy in agrifood systems, from farm to fork. And achieve at the same time goals of economic sustainability-higher yields, lower costs-as well as environmental sustainability.
6.1) Agrobiodiversity
Sixty percent of food energy intake, according to the Ellen MacArthur Foundation, now comes from four crops: corn, rice, wheat and potatoes. Diversifying the ingredients used in food and feed production could stimulate the recovery of agrobiodiversity, recovering many locally relevant ingredients with less impact on ecosystems.
Agrobiodiversity postulates greater attention to local contexts, having regard to traditional crops that are often linked to the environmental and climatic characteristics of territories. (6) And it can result not only in the enrichment of supply but also in the increased resilience of crops, possibly including the enhancement of local food systems.
6.2) Ingredients with less environmental impact
Environmental impact assessment of different crops should also guide diversification choices of ingredients for food and feed. Taking into account consumption of soil, water, inputs in agriculture, but also greenhouse gas emissions (GHGs).
Replacing even partial substitution of wheat flour with pea flour in breakfast cereals, for example, can enable reductions in Greenhouse Gases emissions of up to 40 percent and biodiversity loss of up to 5 percent, at the level of primary agricultural production.
Legumes, as highlighted in the FAO report ‘
The global economy of pulses
‘ (2019), can in fact reduce the need for nitrogen fertilizers by fixing nitrogen in the soil to a far greater extent than many cereal crops. In addition to strengthening soil health.
6.3) Upcycling
Upcycling has tremendous potential both in reducing production costs-valuing the virtuous recovery of lower value-added co-products (7,8)-and in the environmental management of scraps that in some cases are otherwise destined for waste (9,10). #wasteless.
The virtuous recovery of commodity lateral flows has the primary effect of relieving pressure on ecosystems and maximizing the return on investment on soils, agricultural inputs, energy and other inputs in agriculture and processing. Nothing could be more logical.
6.4) Agroecology
Agroecology is the key to regeneration and circular economy in agrifood systems (FAO, 2019). (11) It is therefore concerned with agronomic practices based on minimizing tillage, crop rotation and intercropping of different varieties, elimination of synthetic pesticides and herbicides, and drastic reduction of other inputs. (12)
The organic method–following a conversion period, which is also useful in restoring soil health–enables increases in yields and provides additional remuneration for farmers. (13) As well as generating significant benefits for biodiversity and ecosystems, with lasting resilience and food security benefits.
7) Food circular (re-design), the positive results on three supply chains.
The application of regenerative methods described above to the supply chains of three widely consumed ingredients-wheat, potatoes, and dairy products-shows how this approach can reduce greenhouse gas emissions (Greenhouse Gases, GHG) and biodiversity loss to the extent of 70% and 50%, respectively, at the farm level.
The reduction of environmental impact mentioned above over an 8-year horizon, according to the study conducted by the Ellen MacArthur Foundation, is accompanied by a 50 percent higher food production and a net increase of $3,100 in annual remuneration per hectare for farmers, compared to the baseline.
8) Food circular re-design, five recommendations.
The report-as well as offering examples of the application of the circular economy in different supply chains of agrifood systems-proposes five recommendations aimed at companies wishing to embark on a ‘circular redesign for food’ path:
1) Create ambitious and well-funded action plans to transform the product portfolio under the banner of eco-friendliness,
2) Create a new dynamic of collaboration with farmers to develop and enhance agroecology,
3) Develop iconic products to show the potential of circular design for food,
4) Help develop and apply common metrics and standards, e.g., organic, on the farm and in the supply chain,
5) Support policies that support a positive food system for ecosystems and biodiversity.
9) Interim Conclusions
‘Food circular (re-design),’ according to the Ellen MacArthur Foundation, could generate annual benefits of up to $2.7 trillion by 2050 if the proposed measures were adopted on a global scale. The circular economy applied to agrifood systems has a key role to play in fostering these opportunities.
Dario Dongo and Giulia Pietrollini
Notes
(1) Ellen MacArthur Foundation (2021). The big food redesign study: Regenerating nature with the circular economy https://ellenmacarthurfoundation.org/the-big-food-redesign-study 2021
(2) Boston Consulting Group (2021). The biodiversity crisis is a business crisis. Chatham House, Food system impacts on biodiversity loss – three levers for food system transformation in support of nature
(3) Dario Dongo. Biodiversity and climate emergency, the common thread. Égalité. 13.2.20
(4) Ellen MacArthur Foundation (2019). Cities and circular economy for food https://ellenmacarthurfoundation.org/cities-and-circular-economy-for-food
(5) Dario Dongo, Luca Foltran. Plastics, a global commitment against waste. GIFT (Great Italian Food Trade). 3.11.18
(6) Dario Dongo, Andrea Adelmo Della Penna. Agrobiodiversity, ecological transition and mycoproteins. GIFT (Great Italian Food Trade). 29.4.23
(7) Dario Dongo. Upcycling, the high road of research and innovation. GIFT (Great Italian Food Trade). 1.1.23
(8) Dario Dongo and Giulia Pietrollini. Upcycling economy, upcycled food. The revolution against waste. GIFT (Great Italian Food Trade). 31.1.23
(9) Dario Dongo and Andrea Adelmo Della Penna. Wasteless, EU research project on circular economy and blockchain. GIFT (Great Italian Food Trade). 5.9.22
(10) Dario Dongo and Andrea Adelmo Della Penna. EcoeFISHent, upcycling and blue economy in the fish supply chain. The EU research project. GIFT (Great Italian Food Trade). 18.10.21
(11) Dario Dongo, Camilla Fincardi. Agroecology, SDGs, salvation. FAO’s decalogue. GIFT (Great Italian Food Trade). 12.4.20
(12) Dario Dongo, Marta Strinati. Sustainable pesticide use, civil society demands for reform. GIFT (Great Italian Food Trade). 4.9.22
(13) Dario Dongo, Giulia Orsi. Organic farming. Resilience and food security, fair remuneration. The Swedish study. GIFT (Great Italian Food Trade). 3.3.21
(14) Sabrina Bergamini. 10 years of agroecology to save Europe, the IDDRI study. GIFT (Great Italian Food Trade). 25.3.19
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
Graduated in industrial biotechnology and passionate about sustainable development.
 reflections on the circular economy in agrifood systems.){kind=link}