A business model typology for valorizing agro-waste and by-products

Mechthild Donner (), Romane Gohier and Hugo de Vries ()
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Mechthild Donner: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Romane Gohier: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Hugo de Vries: UMR IATE - Ingénierie des Agro-polymères et Technologies Émergentes - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - UM2 - Université Montpellier 2 - Sciences et Techniques - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier

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Abstract: Circular economy is an economic model that aims to reconcile economic growth with the preservation of the environment. New and sustainable business models are needed for a transition to a circular economy. Our research aim is to identify and characterise different types of circular business models that valorise agricultural waste and by-products via cascading or closing loops. We have selected six European cases (out of 33 international cases studied in the EU project NOAW) that convert agricultural by-products into valuable products via a circular economy (cascading or closing loops) approach. Qualitative semi-structured interviews have been performed. The analysis has been done according to the type of organisational structure, resources and transformation processes, value propositions, key partners, customers, strategic approaches and type of business model innovation. The six cases differ in their way of value creation (from lower to higher value) and/or in their organisational form: biogas plant, upcycling entrepreneurship, environmental biorefinery, support structure, agricultural cooperative and agropark. The typology shows the diversity but also a complementarity of circular business models for valorising agro-waste and by-products. The typology is unique as an overarching model and in its specificity for the agricultural sector; it therefore contributes to a better conceptual understanding of circular business models. It is useful because it may provide best practices that could serve as reference for other businesses, and helps investors and resource or equipment suppliers in understanding the positioning and long-term perspectives of the business. However, typical agricultural characteristics still need to be integrated in this framework such as heterogeneity, fluctuating volumes of resources, or flexibility in production due to seasonality. These would make potential bottlenecks transparent.

Keywords: business model; agro-waste management; value creation; circular economy (search for similar items in EconPapers)
Date: 2019-07-01
New Economics Papers: this item is included in nep-hme
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Published in 4. International Conference on New Business Models, Jul 2019, Berlin, Germany

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