DOI: https://doi.org/10.14710/agrisocionomics.v9i2.25170

Building a Sustainable Circular Agri-Food Supply Chain For Rural Producer Organization

Alif Andika orcid  -  Agricultural Economics Study Program, Faculty of Agriculture, Universitas Padjadjaran, Sumedang, Indonesia, Indonesia
*Tomy Perdana  -  Department of Agro-Socio Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang, Indonesia, Indonesia
Diah Chaerani  -  Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang, Indonesia, Indonesia
Hesty Nurul Utami  -  Department of Agro-Socio Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang, Indonesia, Indonesia
Open Access Copyright 2025 Agrisocionomics: Jurnal Sosial Ekonomi Pertanian under http://creativecommons.org/licenses/by-sa/4.0.

Citation Format:
Abstract
The development of a sustainable circular agri-food supply chain for rural producer organizations is essential to address the challenges of food loss, agricultural waste management, and resource efficiency. This study explores the integration of circular economy principles within the vegetable supply chain of rural producer organization, emphasizing the utilization of waste as a resource through technologies. Using a mixed-methods approach, the research analyzes the current state of waste management practices, quantifies losses across production and post-harvest stages, and identifies opportunities for improvement. The findings highlight significant inefficiencies in waste utilization, revealing that daily losses result in financial losses amounting to 4-10% of potential revenue. A sustainable circular supply chain model is employed to analyze and coordinate the interdependencies and decision-making processes among stakeholders, ensuring efficient resource allocation, effective waste management, and the integration of circular economy principles to achieve sustainability outcomes. By aligning production processes with circular economy principles, rural producer organizations can reduce environmental impacts, improve economic resilience, and contribute to the long-term sustainability of the agri-food supply chain.
Fulltext View|Download
Keywords: circular economy; sustainability; food loss; waste management
Funding: Ministry of Higher Education, Science, and Technology of Indonesia

Article Metrics:

Article Info
Section: Articles
Language : EN
Recent articles
Palm Oil Fresh Fruit Bunch Supply Chain in Bengkulu Province: A Study on Trust Levels Among Suppliers Risk Analysis For Sustainable Broccoli Cultivation : A Case Study From Ngablak District Magelang Regency Risk Mitigation Of Rice Production In Pringsewu District More recent articles
  1. Bappenas. (2021). Food Loss and Waste di Indonesia. In Laporan Kajian Foodd Loss and Waste Di Indonesia. https://lcdi-indonesia.id/wp-content/uploads/2021/06/Report-Kajian-FLW-FINAL-4.pdf
  2. Begum, J. A., Nooruzzaman, M., Modak, M., Khanam, D., Hossain, I., Hasnat, A., Kabiraj, C. K., & Chowdhury, E. H. (2023). Poultry waste management practices in Bangladesh: Farmer’s perceptions, and food and environmental hazards. Journal of Advanced Veterinary and Animal Research, 10(1), 72–79. https://doi.org/10.5455/javar.2023.j654
  3. Bhattacharjee, M., Mehta, S., Singh, P., Singh, M., & Pongener, N. (2023). Diversification of Livelihood from Animal Waste and by-Product for Small and Marginal Farmers in India. Asian Journal of Dairy and Food Research, 42(4), 564–569. https://doi.org/10.18805/ajdfr.B-5042
  4. Bhuvaneshwari, S., Hettiarachchi, H., & Meegoda, J. N. (2019). Crop residue burning in India: Policy challenges and potential solutions. International Journal of Environmental Research and Public Health, 16(5). https://doi.org/10.3390/ijerph16050832
  5. Boon, E. K., & Anuga, S. W. (2020). Circular Economy and Its Relevance for Improving Food and Nutrition Security in Sub-Saharan Africa: the Case of Ghana. Materials Circular Economy, 2(1). https://doi.org/10.1007/s42824-020-00005-z
  6. Boza, S., Zambrano, V., Jerez, C., Rengifo, A., & Núñez-Mejía, A. (2024). Small-scale farmers’ attitudes and perceptions toward associations: an exploratory analysis at the central zone of Chile. Ciencia Rural, 54(2), 1–9. https://doi.org/10.1590/0103-8478cr20220575
  7. Bryman, A. (2012). Social Research Methods. In Oxford University Press (4th ed., Vol. 11, Issue 1). Oxford University Press. http://scioteca.caf.com/bitstream/handle/123456789/1091/RED2017-Eng-8ene.pdf?sequence=12&isAllowed=y%0Ahttp://dx.doi.org/10.1016/j.regsciurbeco.2008.06.005%0Ahttps://www.researchgate.net/publication/305320484_SISTEM_PEMBETUNGAN_TERPUSAT_STRATEGI_MELESTARI
  8. Corrado, S., Caldeira, C., Eriksson, M., Hanssen, O. J., Hauser, H. E., van Holsteijn, F., Liu, G., Östergren, K., Parry, A., Secondi, L., Stenmarck, Å., & Sala, S. (2019). Food waste accounting methodologies: Challenges, opportunities, and further advancements. Global Food Security, 20, 93–100. https://doi.org/10.1016/j.gfs.2019.01.002
  9. Creswell, J. W. (2014). A Concise Introduction to Mixed Methods Research. SAGE Publications Ltd
  10. Dai, J., Chen, B., Hayat, T., Alsaedi, A., & Ahmad, B. (2015). Sustainability-based economic and ecological evaluation of a rural biogas-linked agro-ecosystem. Renewable and Sustainable Energy Reviews, 41, 347–355. https://doi.org/10.1016/j.rser.2014.08.043
  11. Gruber, V., Holweg, C., & Teller, C. (2016). What a waste! exploring the human reality of food waste from the store manager’s perspective. Journal of Public Policy & Marketing, 35(1), 3–25. https://doi.org/10.1509/jppm.14.095
  12. Hanif, Z., & Ashari, H. (2021). Post-harvest losses of citrus fruits and perceptions of farmers in marketing decisions. E3S Web of Conferences, 306, 1–6. https://doi.org/10.1051/e3sconf/202130602059
  13. Huang, C. H., Liu, S. M., & Hsu, N. Y. (2020). Understanding global food surplus and food waste to tackle economic and environmental sustainability. Sustainability (Switzerland), 12(7), 1–18. https://doi.org/10.3390/su12072892
  14. Jurgilevich, A., Birge, T., Kentala-Lehtonen, J., Korhonen-Kurki, K., Pietikäinen, J., Saikku, L., & Schösler, H. (2016). Transition towards circular economy in the food system. Sustainability (Switzerland), 8(1). https://doi.org/10.3390/su8010069
  15. Kang, S. M., Shaffique, S., Kim, L. R., Kwon, E. H., Kim, S. H., Lee, Y. H., Kalsoom, K., Khan, M. A., & Lee, I. J. (2021). Effects of organic fertilizer mixed with food waste dry powder on the growth of chinese cabbage seedlings. Environments - MDPI, 8(8), 2–11. https://doi.org/10.3390/environments8080086
  16. Kusnandar, K., Perdana, T., Achmad, A. L. H., & Hermiatin, F. R. (2021). A framework for designing symbiotic simulation decision support systems for horticultural supply chains involving smallholder farmers. IOP Conference Series: Earth and Environmental Science, 922(1), 0–8. https://doi.org/10.1088/1755-1315/922/1/012050
  17. Lal, R. (2015). Restoring soil quality to mitigate soil degradation. Sustainability (Switzerland), 7(5), 5875–5895. https://doi.org/10.3390/su7055875
  18. Mugwagwa, I., Bijman, J., & Trienekens, J. (2020). Typology of contract farming arrangements: a transaction cost perspective. Agrekon, 59(2), 169–187. https://doi.org/10.1080/03031853.2020.1731561
  19. Mwambi, M., Bijman, J., & Mshenga, P. (2020). Which type of producer organization is (more) inclusive? Dynamics of farmers’ membership and participation in the decision-making process. Annals of Public and Cooperative Economics, 91(2), 213–236. https://doi.org/10.1111/apce.12269
  20. Nguyen, T. K., Khue, N. T. M., Tran, Q. P., Anh, N. T. Q., Cuong, L. K., Du, N. C., Cuong, C. V., Thuong, V. T., Anh, D. H., & Vu, N. A. (2024). Examining the Factors Influencing the Level of Circular Economy Adoption in Agriculture: Insights from Vietnam. Research on World Agricultural Economy, 5(1), 48–58. https://doi.org/10.36956/rwae.v5i1.992
  21. Orskov, E. R., Yongabi Anchang, K., Subedi, M., & Smith, J. (2014). Overview of holistic application of biogas for small scale farmers in Sub-Saharan Africa. Biomass and Bioenergy, 70, 4–16. https://doi.org/10.1016/j.biombioe.2014.02.028
  22. Parfitt, J., Barthel, M., & MacNaughton, S. (2010). Food waste within food supply chains: Quantification and potential for change to 2050. Philosophical Transactions of the Royal Society B: Biological Sciences, 365(1554), 3065–3081. https://doi.org/10.1098/rstb.2010.0126
  23. Perdana, T., Kusnandar, K., Perdana, H. H., & Hermiatin, F. R. (2023). Circular supply chain governance for sustainable fresh agricultural products: Minimizing food loss and utilizing agricultural waste. Sustainable Production and Consumption, 41(September), 391–403. https://doi.org/10.1016/j.spc.2023.09.001
  24. Poulton, P., Johnston, J., Macdonald, A., White, R., & Powlson, D. (2018). Major limitations to achieving “4 per 1000” increases in soil organic carbon stock in temperate regions: Evidence from long-term experiments at Rothamsted Research, United Kingdom. Global Change Biology, 24(6), 2563–2584. https://doi.org/10.1111/gcb.14066
  25. Pratama, A., Kamarubiani, N., Shantini, Y., & Heryanto, N. (2021). Community empowerment in waste management: a meta synthesis. Proceedings of the First Transnational Webinar on Adult and Continuing Education (TRACED 2020), 548(Traced 2020), 78–83. https://doi.org/10.2991/assehr.k.210508.015
  26. Qu, J., & He, X. (2024). The impact of technological advancements on carbon emissions in agriculture and rural areas. E3S Web of Conferences, 520. https://doi.org/10.1051/e3sconf/202452002005
  27. Rajpal, A., Kazmi, A. A., & Tyagi, V. K. (2020). Solid waste management in rural areas nearby river ganga at haridwar in Uttarakhand, India. Journal of Applied and Natural Science, 12(4), 592–598. https://doi.org/10.31018/jans.v12i4.2394
  28. Ries, J., Chen, Z., & Park, Y. (2023). Potential Applications of Food-Waste-Based Anaerobic Digestate for Sustainable Crop Production Practice. Sustainability (Switzerland), 15(11). https://doi.org/10.3390/su15118520
  29. Rodias, E., Aivazidou, E., Achillas, C., Aidonis, D., & Bochtis, D. (2021). Water-energy-nutrients synergies in the agrifood sector: A circular economy framework. Energies, 14(1), 1–17. https://doi.org/10.3390/en14010159
  30. Rodino, S., Pop, R., Sterie, C., Giuca, A., & Dumitru, E. (2023). Developing an Evaluation Framework for Circular Agriculture: A Pathway to Sustainable Farming. Agriculture (Switzerland), 13(11). https://doi.org/10.3390/agriculture13112047
  31. Russo, G., & Verdiani, G. (2013). Production and reuse of waste in rural area with high density of greenhouse. Journal of Agricultural Engineering, 44(2s). https://doi.org/10.4081/jae.2013.s2.e48
  32. Ryciuk, U. (2020). Supply chain governance mechanisms: A review and typology. Eurasian Studies in Business and Economics, 13(2), 53–73. https://doi.org/10.1007/978-3-030-40160-3
  33. Sagar, N. A., Pareek, S., Sharma, S., Yahia, E. M., & Lobo, M. G. (2018). Fruit and Vegetable Waste: Bioactive Compounds, Their Extraction, and Possible Utilization. Comprehensive Reviews in Food Science and Food Safety, 17(3), 512–531. https://doi.org/10.1111/1541-4337.12330
  34. Sari, D. A. P., Darmono Taniwiryono, Richa Andreina, Prismita Nursetyowati1, Diki Surya Irawan, Aqil Azizi, & Prima Hadi Putra. (2022). Utilization of Household Organic Waste As Solid Fertilizer With Maggot Black Soldier Fly (BSF) As A Degradation Agent. Agricultural Science, 5(2), 82–90. https://doi.org/10.55173/agriscience.v5i2.69
  35. Schneider, P., Rochell, V., Plat, K., & Jaworski, A. (2021). Circular Approaches in Small-Scale Food Production. Circular Economy and Sustainability, 1(4), 1231–1255. https://doi.org/10.1007/s43615-021-00129-7
  36. Septian, R., & Judiantono, T. (2019). Identifikasi karakteristik perangkutan pasca produksi pertanian di Kecamatan Lembang Kabupaten Bandung Barat. Perencanaan Wilayah Dan Kota, 16(1), 1–8. https://ejournal.unisba.ac.id/index.php/planologi/article/view/1
  37. Simamora, L., Zebua, D. D. N., & Handayani, W. (2022). The Drivers of Food Loss at the Farm Level: A Study of Farmers in Salatiga, Central Java, Indonesia. IOP Conference Series: Earth and Environmental Science, 1111(1). https://doi.org/10.1088/1755-1315/1111/1/012033
  38. Tsai, W. T. (2020). Turning food waste into value-added resources: Current status and regulatory promotion in Taiwan. Resources, 9(5). https://doi.org/10.3390/RESOURCES9050053
  39. Țucă, O., & Cătălin, S. (2023). Insects species involved in waste bioconversion and use as animal feed. ANNALS OF THE UNIVERSITY OF CRAIOVA, 28(64), 151–154
  40. Yagüe, M. R., Lobo, M. C., & García, P. (2023). Organic fertilisation induces changes in soil nitrogen mineralisation and enzyme activities. Plant, Soil and Environment, 69(1), 38–43. https://doi.org/10.17221/274/2022-PSE
  41. Yue, Q., Guo, P., Wu, H., Wang, Y., & Zhang, C. (2022). Towards sustainable circular agriculture: An integrated optimization framework for crop-livestock-biogas-crop recycling system management under uncertainty. Agricultural Systems, 196(December 2021), 103347. https://doi.org/10.1016/j.agsy.2021.103347
  42. Yusof, N. A., Syed Annuar, S. N., & Ambad, N. A. (2023). Examining The Effect of Relationship Marketing on The Small Farmers’ Social, Economic, And Environmental Sustainability Performance. International Journal of Academic Research in Business and Social Sciences, 13(5), 2291–2308. https://doi.org/10.6007/ijarbss/v13-i5/17065
  43. Zhao, X., Xing, W., Liu, L., & Wang, S. (2015). Demand information and spot price information: Supply chains trading in spot markets. European Journal of Operational Research, 246(3), 837–849. https://doi.org/10.1016/j.ejor.2015.05.046

Last update:

No citation recorded.

Last update:

No citation recorded.