Harvesting sustainability: Transforming traditional agri-food supply chains with circular economy in developing economies

Abstract

This study evaluates the integration of Circular Economy (CE) practices to enhance sustainable production in order to reduce waste in Traditional Agri-food Supply Chains (TAFSCs) in developing economies. Previous research on waste in agri-food supply networks has mostly focused on material waste without considering the broader aspect of the supply chain flows, while extant research on CE has focused on the industrial sector emphasizing a gap on sustainable CE driven agricultural models. This article addresses that gap by proposing the concept of supply chain waste, highlighting the need of consistent flows in material, information, and financial flows while integrating CE driven sustainable production strategies. Using the Analytical Hierarchy Process (AHP), the study identifies information flow as the most impactful flow in minimizing supply chain waste, followed by material and financial flows. The study identified ten waste categories under supply chain flows and data fragmentation, poor logistics coordination and demand-supply mismatch are key waste categories. CE practices such as collaborative platforms, precision agriculture, vertical integration, smart packaging, closed-loop systems and resource recovery are evaluated for their effectiveness in resolving these waste types. The results underscore the need for information sharing systems via collaboration, optimized resource use through precision agriculture and vertical integration to lead towards equitable profit sharing and minimized resource waste while improving sustainability in TAFSCs. This study offers strategic insights for policymakers and stakeholders to develop more efficient and resilient vegetable supply chains in developing economies, highlighting the importance of digitization, public-private partnerships, and financial support in overcoming existing challenges.