Business Models Supported by Circular Economy Principles and Practices for the Fruit and Vegetable Sector: An Analysis from the Perspective of Social Inclusion of Family Farmers

Abstract

Food production is an activity that generates a lot of waste, especially in the vegetable segment, where weather conditions, handling, transport conditions, late harvesting, and even non-commercialization within proper deadlines mean that the consumption of these foods is unfeasible. Based on this premise, this study aims to analyze business models supported by circular economy principles and practices for the fruit and vegetable sector, an analysis from the perspective of social inclusion of family farmers. The study was carried out in southern Brazil and encompasses 12 local stakeholders. The research results show that: (a) food production is an activity that includes all family members in production processes; (b) generation of waste is intrinsic to the activity; (c) waste and waste management alternatives are already internalized in the sector; (d) female empowerment is noticeable in the fruit and vegetable sector; and (e) traditional business models, that is, prompt delivery, use of few formal distributors, and door-to-door sales by family farmers, are the usual mechanisms that are adopted in this segment in southern Brazil. Therefore, the contribution of this study is centered on the evidence that the vegetable and fruit segment is an alternative production chain in southern Brazil, a region where the production of commodities in the agribusiness segment predominates. Besides that, the fruit and vegetable segment plays an important social role, generating inclusion and income opportunities for families that do not have working capital for multimillion investments demanded by agribusiness led by major global players. A research agenda was created to generate promising alternatives for the productive capillarity of the horticultural sector in southern Brazil. So, the chapter relates to circular economy when looking at the potential for circularity of waste and its re-signification, for the creation of new products and new uses for these materials, with the potential to increase social inclusion.