Agri-Food Supply Chains from Circular Economy Perspective

Agri-Food Supply Chains from Circular Economy Perspective

DOI: 10.4018/978-1-6684-7664-2.ch014
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Abstract

The world's food production is four billion metric tons per year, of which 1.3 billion tons get wasted. As the world population reaches 9.8 billion in 2050, the world food demand will be around 14,886 million tons. Around 800 million people are going hungry every day, and another 2 billion people will join by 2050. The problem is not inadequate production but inefficient food handling and excess wastage. The traditional agriculture systems of production and consumption have several social, economic, and environmental implications. Without proper measures, it is doubtful to mitigate hunger even with surplus production. Therefore, adopting circular agri-food supply chains is a viable option to reduce and reuse food waste to develop a sustainable model.
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Towards Circular Agri-Food Supply Chains (Cafscs)

Recent trends in technology have enabled food waste management to focus on resource circulation (Usmani, 2021). Researchers and International organizations have been developing suitable circular models in the agri-food sector to reduce, optimize and sustain this sector and livelihoods based on this sector. Some of the strategies that have been in implementation are: reverse logistics, green supply chains, short supply chains, smart supply chains, closed-loop supply chains, etc. Reverse logistics recaptures the value of discarded products/materials by recycling them into the supply chain, thereby reducing wastage. Green supply chains integrate environment-sustainable principles and set indicators to supply chain management that includes material sourcing, eco-friendly logistics, and end-of-life product management. Short supply chains reduce intermediaries, smart supply chains use IoT, blockchain, and AI technologies to improve tracking and transportation, and closed-loop supply chains integrate the forward and backward linkages covering the whole life cycle of products (Stella Despoudi U. S., 2021). These strategies so far focus on one aspect of the supply chain or multiple aspects but not on the whole food system. CAFSC emphasizes comprehensive strategic management to achieve long-term sustainability of the environment, economy, and society. Webster defined CSC as a “sustainable economy that is restorative by design which keeps the product, components, and materials at their highest utility and value at all times” (Stella Despoudi U. S., 2021).

Key Terms in this Chapter

Food Waste: Food product being discarded after it arrives at the grocery store and at consumption due its unattainable quality standards, poor planning, poor stock management, unhealthy eating habits, and lack of value towards food.

Food Wastage: This includes both food loss and food waste, and the factors that cause food loss and waste throughout the supply chain. Food wastage is a result of weak management of food systems, lack of timely logistic facilities, and poor consumer behavior.

Responsible Consumption and Production (SDG 12): Sustainable production and consumption is defined as the production and use of products and services in a manner that is socially beneficial, economically viable, and environmentally benign over their whole life cycle.

Circular Agri-Food Supply Chains: A circular economy for food, is a system of regeneration and repurposing of the food supply chains with an aim to keep the supply chain in a closed loop of maximizing product life and reducing waste. It also considers the reconstitution of existing supply chains to better manage its resources, people, and system.

Food Recovery: It’s a practice of preventing surplus food from being discarded, through various methods and techniques that offer social, economic, and environmental benefits.

Circular Economy: A circular economy is an economic system aimed at eliminating or reducing waste from production to consumption through the continual usage of resources.

Food Loss: Food product being discarded before it arrives at the grocery store due to poor handling during harvest, transportation, processing, and storage resulting in spoilages.

Agri-Food Supply Chain: Agri-food supply chain or agri-food system refers to the processes that describe how food from a farm ends up on the table. The processes include production, processing, distribution, marketing, consumption, and disposal.

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