The sustainable configuration of a circular economy in the agri-food supply chain: a case study of the sugar cane supply chain

Abstract

PurposeThis paper explores the connection between agri-food supply chains (AFSCs) and levels of circular economy (CE): supply chain (SCs), firm, and product/materials. We aim to answer the following crucial research questions: (1) What are the specific characteristics of the AFSC that affect the implementation of CE? (2) How can the interplay of AFSC characteristics and CE levels be understood and utilised to close the current knowledge gap in CE implementation? (3) How do the CE levels established (in question 2) correspond to the notion of cascade chains? (4) Can the Triple-Bottom Line (TBL) principles be used to report CE impacts in the agri-food industry? (5) What future research directions need to be explored for sustainable CE configuration in AFSCs? Answering these questions expands the knowledge of the implementation of CE in AFSCs, which is crucial for sustainable configuration based on the TBL principles.Design/methodology/approachWe conducted a comprehensive narrative overview (a type of narrative literature review) followed by a case study guided by the cascade chain theory. The sugar cane industry, a significant source of bioenergy that can contribute to sustainable development, was selected for the case study. To validate our findings from the narrative overview, we interviewed five directors from international sugar companies.FindingsOur research has shown that CE can significantly benefit the sugar cane industry. Based on TBL principles, we have developed a framework to achieve sustainable configurations in AFSCs. The framework starts with regenerative agriculture, material reuse, and energy recovery, where different CE levels intersect. This intersection can guide firms to improve decision-making, promote sustainable practices, and inform policymaking across the sugar cane value chain.Research limitations/implicationsNarrative overview has limitations such as potential subjectivity and bias and may not be suitable for generalisation. To mitigate this limitation, we have included a case study to produce a rounded analysis. We have also gathered information from secondary sources, such as reports and company news articles, to prevent biased results.Practical implicationsThis research provides valuable insights to assist companies in aligning their practices with CE levels, leading to sustainable outcomes in AFSCs. The study emphasises the importance of integrating CE levels and AFSC characteristics for policymakers to validate and develop new policies. Through our in-depth analysis of sugar cane SCs, we demonstrate that the various CE levels are interdependent and work in tandem with the unique characteristics of sugar cane, resulting in a sustainable configuration.Originality/valueAnalysing the connectedness between CE levels and AFSC characteristics is crucial to fully understanding the CE sustainable configuration. Unlike other frameworks that only describe the CE concept, the framework presented in this paper clearly explains the implementation of CE in AFSCs. It helps industrial practitioners and policymakers validate current practices and future policies. The paper also highlights future research directions and provides valuable insights.