A new circular business model typology for creating value from agro-waste

Shifting from a linear to a circular economy in the agrifood domain requires innovative business models, including reverse logistics, new visions on customer-supplier relationships, and new forms of organization and marketing strategies at the crossroads of various value chains. This research aims to identify and characterise different types of business models that create value from agricultural waste and by-products via cascading or closing loops. Conceptual and management insights into circular business models are still sparse. In total, 39 cases have been studied that convert agro-waste and by-products into valuable products via a circular economy approach. Semi-structured interviews and on-site visits of six representative cases have been done, and secondary data been collected. Data has been treated with content analysis. Cases are presented according to the type of organisational structure, resources, transformation processes, value propositions, key partners, customers, strategic approaches and innovation. Six types of circular business models are identified and discussed: biogas plant, upcycling entrepreneurship, environmental biorefinery, agricultural cooperative, agropark and support structure. They differ in their way of value creation and organisational form, but strongly depend on partnerships and their capacity to respond to changing external conditions. This study offers the first circular business model typology within the agricultural domain, revealing the interconnectedness of the six different business model types. It provides options for managers in positioning and adapting their business strategies. It highlights the potential of using biomass first for higher added-value products before exploiting it as energy source. Cascading biomass valorisation at a territorial level will increasingly be important for locally cooperating actors within a circular bioeconomy approach.