Circular Economy in Agriculture: Turning Waste into Resources for a Sustainable Future

The global farming, food processing and retail industries create tens of billions of tons of agricultural residues and food waste every year.  When crops are harvested, and the edible - or at least the marketable - parts of plants or trees are extracted for processing, an estimated 80% of plant biomass is discarded as waste. Wastage continues down the supply chain, through supermarkets and stores, and ends with the consumer. 

Agricultural and food waste products are frequently nutrient dense and agri‑waste valorization (the repurposing of agricultural waste and byproducts into useful materials) has a long history. A basic manure heap or composting system that converts natural waste materials into organic fertilizer is an age-old example of agri‑waste valorization and a localized circular economy in action.

Farms and food processors are taking advantage of new technologies to systematically repurpose agricultural byproducts and waste, either reintegrating them into field level operations or deriving wider commercial value from them. Major companies and startups are channeling technical innovation into processes that convert crop residues, processing waste and manure into biofertilizers, bioplastics, and bioenergy as part of an emerging sustainable farming ecosystem. 

A Breakdown of Food Loss and Waste across the World

Source: The World Bank

How an AgTech - Enabled Circular Economy can Function

The simplest way to create a circular economy built around agri‑waste valorization is to establish an on-farm nutrient recycling framework. Manure and crop residues are processed naturally on site and reintegrated into operations as compost and biofertilizers etc. These basic (and low cost) frameworks can be enhanced by data-driven cover cropping and crop rotation and intercropping strategies, as well as the application of biochar to create a sustainable and low impact circular economy farming operation that substantially reduces dependence on chemical inputs.  

Local biorefineries can process agricultural waste to generate clean bioenergy, biochemicals, and biofertilizers. Innovative anaerobic digestion processes, fermentation, controlled composting methods and even insect bioconversion can also convert waste into valuable resources. Byproducts from the refining process such as digestate or nutrient rich ash can be returned to local farms. An emerging trend is the creation of economic incentives and regulatory support for circular‑agriculture models. 

One of the more unusual techniques for agri‑waste valorization is the use of insects. Dutch company Protix uses the black soldier fly to transform food waste into high quality nutrients for aquaculture and livestock and pet food, while converting process byproducts into fertilizers. Approximately one third of all food is wasted, mainly at the retail and consumer end of the supply chain. This food requires disposal, often via landfill sites and inevitably creates a carbon footprint, as well as additional impacts. Protix’s goal is to use science-based innovation to create a profitable low-footprint food chain that generates nutritionally dense proteins. There is still a way to go in creating consumer interest in insect-derived foods for humans, but the aquaculture and animal feed market offers strong potential for growth. 

Another good example is ICL Group, a  leading global specialty minerals company and one of the largest fertilizer manufacturers in the world. The company has a longstanding commitment to sustainability and the creation of circular economies. One area where ICL is consistently innovative is in brine and phosphate recycling, particularly within the context of fertilizer solutions. The raw materials for ICl’s Puraloop® fertilizer are obtained by recycling phosphorus from organic waste streams as a sustainable alternative to utilizing mined phosphorus rock. The key advantages of Puraloop® are its versatility, ease of application on open fields, orchards and plantations, and minimal environmental impacts. Puraloop® is a flagship circular economy solution that turns waste matter into a valuable crop nutritional solution.

Versalis  is an Italian company that is investing in the creation of large scale circular economies. Versalis uses groundbreaking technologies to create high quality industrial-grade monomers, polymers, and elastomers from waste materials. They also produce bionaphtha from used vegetable oils - detritus from the very end of the food supply chain. It can be used to produce polymers or sustainable aviation fuel and diesel alternatives. Versalis also offers a broad spectrum herbicide solution called Sunpower that is produced from renewable materials. It is designed for the control of annual and perennial weeds in urban and industrial locations. 

BlueFire Renewables (previously BlueFire Ethanol) is a pioneering biofuel company that converts waste material into ethanol. The company utilizes a complex chemical process to break down waste and extract natural sugars. The sugars in turn undergo a yeast fermentation which produces ethanol. Once produced, the ethanol can be used in the manufacture of alcoholic beverages, citric acid and edible xanthan gum for food ingredients. Ethanol is also used as a fuel, and is emerging as a cleaner alternative to petrochemical fuels. BlueFire Renewable’s Concentrated Acid Hydrolysis Technology Process is proving scalable and the company has been awarded funding by the U.S. Department of Energy to construct a new commercial scale cellulosic ethanol production facility.

Conclusion: Anticipating a Transition to Circular Economy

Pioneering companies like ICL Group, Versalis and Protix are demonstrating that the integration of circular economies that repurpose waste and byproducts within, or for, the agricultural sector are commercially viable. The creation of on-farm recycling frameworks is a straightforward venture and the core principles are scalable. Localized biorefineries and large scale commercial enterprises can all contribute to the development of resilient and sustainable agricultural systems. The key message is that repurposing waste is potentially profitable, and also delivers powerful ESG and reputational advantages for businesses.