A Circular Economy Model in Agricultural Production: the Relevance of Its Implementation and Challenges to Its Functioning
Year: 2026
Type: article
Abstract: This article examines the theoretical and methodological foundations for developing a circular economy model for agricultural production, taking into account both European integration processes and growing resource constraints. A key issue is the lack of a systematic approach to waste management that accounts for the sector's structural and scale-related features, hindering the effective implementation of circular solutions. The study aims to develop conceptual approaches to waste management in agricultural production grounded in circular principles, and to identify patterns in the implementation of the circular economy model influenced by structural and scale factors. The study takes an interdisciplinary approach, combining the principles of circular, institutional, and physical economics. Scientific abstraction, induction, deduction, grouping, comparative-analytical, structural-functional, and statistical methods were employed.The circular economy model for agricultural production is substantiated by integrating biological and technical cycles of resource use, thereby preserving value, minimizing waste, and creating additional value. The existence of three key centers of waste generation – production, processing, and consumption – has been established, with direct and reverse logistics flows ensuring their interactions. It has been proven that underdeveloped reverse logistics hinder circular transformation. Furthermore, it has been confirmed that organic production contributes to the development of circular practices; however, its effectiveness depends on the comprehensiveness of management decisions.An empirical analysis of EU countries found no direct correlation between the proportion of land devoted to organic farming and waste generation or greenhouse gas emissions. Differentiated trends in food waste dynamics have also been identified, indicating uneven implementation of circular practices.The paper justifies the division into three waste management centers (production, processing, and consumption), which can inform the development of policies and business models. It proposes an approach to differentiated waste management based on waste origin (biological/technical) and demonstrates the feasibility of accounting for the scale of land use in relation to waste accumulation volumes in agricultural production. These results can be applied to the planning of circular business models, the development of organic production, and the implementation of waste processing technologies.
Source: Economic scope
Author: Yurii Fesina
Institution: Lutsk National Technical University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7161291237