Circular Business Models and Circular Agriculture: Perceptions and Practices of Dutch Farmers
Abstract
:1. Introduction
“The transition to a CE requires fundamental changes in current business models in order to exploit the full environmental and economic potential of the CE approach.”[4] (p. 343)
“The circular economy (CE) requires companies to rethink their supply chains and business models.”[7] (p. 36)
“A circular economy describes an economic system that is based on business models which replace the ‘end-of-life’ concept with reducing, alternatively reusing, recycling and recovering materials in production/distribution and consumption processes”[8] (p. 224)
2. An Adaptive and Alternative Approach to CE and CBMs
2.1. Incremental Improvements vs. Addressing the Roots of Problems
“We can describe the contemporary overall theoretical framing of CBMs as ambivalent and divergent when we ask whether CBMs function as catalysts for an economic transition toward sustainability. CBM conceptions are mostly far from holistic and radical, as they fail to address the roots of the persistent problems it aims to solve. Researchers primarily pursue an ecological modernist position that technical solutions can create a new efficiency revolution to decouple economic expansion from ecological burdens (...) The academic literature is still only beginning the discovery process, but it would benefit from a greater engagement with more ‘radical’ sustainable BM innovation approaches than those that underpin the current understanding and visions of CBMs.”
2.2. Other Binary Pairs Close to Adaptive and Alternative
2.3. Interpretations of CE and CA in the Netherlands
3. Farmers on Their Way to Circularity: A Qualitative Exploration
3.1. Farmers Interviewed and Types of Farms Involved in the Present Study
3.2. Taking an Adaptive or Alternative Stance?
Because of a car accident and problems with my immune system and all kinds of allergies, I started to gain more in-depth knowledge about food. As a result I lost trust in food from retailers and decided to start producing my own food and keeping my own animals. My father owned some parcels of forest and there I could start.(BD outdoor pig farmer)
My farmer’s heart was violated very much... As an agricultural contractor I once worked on the tractor for 48 h. Nobody had their own labour anymore and because of the use of pesticides and artificial fertiliser, the farms became larger and larger. I realised that these developments are not future proof, and that I did not want to be part of it as a farmer if it has to be like this.(BD multifunctional farmer 1)
I wondered whether they needed a producing farmer here who produces as efficiently as possible for the world market, or a farmer aligned to the society who also asks society ‘What do you want from me?’ And I decided to turn to the side of society.(BD multifunctional farmer 2)
I am a dedicated newcomer in agriculture. If you do not want to become the largest food producer, you should become the most sympathetic one. Expansion in livestock farming will go on, but if you do not want to join that tendency, you have to invent something special.(Farmer with special livestock)
I have always liked short food supply chains because in that way there will be some money left for the farmer. The ignorance of the consumer struck me. I wanted to do something about that. My wish is that finally 100% of the consumers become more aware of how their food is produced.(Community farmer)
I am a bit of a developer. Someone who thinks about new systems. How can we better use the land and protect nature? I just like to think about these things. And how it can be put into a business model. But some things cannot be expressed in money. It is also about the fun of being a farmer.(Cooperating farmer)
We have 500 sows at the new location and we have a permit to build a new stable for meat pigs. But we do not want to build a conventional stable because we need to install an air washer then and we do not want that. Therefore, we talked about joining a project about separating manure into a thick and a fluid fraction, which aims to reduce ammonia emission, and making manure more suitable for fermentation and production of gas.(Conventional pig farmer 1)
I noticed little understanding for food producers. I wanted to show the role of pigs in the food system. In that way, I hoped to receive more societal approval. I started feeding the pigs with residual flows from the food industry within a 100 km radius, instead of feeding them soy from abroad.(Conventional pig farmer 2)
We opted for writing a business plan that aimed at “and-and” solutions directed towards cost price, environment, animals and people. We also looked specifically for a solution for the vans that drive back and forth between our farms.(Conventional broiler farmer)
3.3. How Circular Are Farms in Practice?
The farm is not completely circular yet, and I hardly know how to make further improvements. The inputs come from the region, that is, from the Netherlands and Germany. The farm is neither climate neutral nor energy neutral, and I do not know how to change that either. I use “blue diesel” for my tractor that is made out of food waste and labelled CO2 neutral. I do realise though that using this type of diesel is possible because not many farmers use it. When more farmers would use blue diesel, there would not be enough of it.(BD dairy farmer)
The farm is not completely circular: Feed is imported and, by selling meat, nutrients are taken away from the farm which do not come back. I am idealist but it is good as it is.(BD outdoor pig farmer)
Our credo is to decrease the cycle as much as possible, preferably at the own farm. We try to be as local as possible, both with respect to external inputs and our supply of meat. How circular can you be? Although we realise that an electric van needs batteries, we like to buy an electric van, but at this moment we are still using diesel.(Outdoor pig farmer)
The farm has more outputs than inputs, much more, and that does not bother me. Concentrate (grain and maize flower) is bought for the dairy cattle, because it is not possible to grow grain and maize on peaty soil and recreants do not like grain and maize because you cannot walk through it and you cannot look across the maize, and the recreants are my clients.(BD multifunctional farmer 2)
Sustainability and circularity do not bother me much in daily practice. I try to be as sustainable as possible, but I realise and accept that not everything I do is “green”.(Farm with special livestock)
It also is possible to produce milk without concentrate but then the cows will produce about 5000 L of milk per year. That does not fit in our business model yet. However, farms which do not use concentrate inspire me. Maybe we will stop using it one day. To me, sustainable farming is a process, a way of life.(Organic mixed farmer)
Well, every pig farmer will say that they contribute to CA because residual flows from the food industry are used already as pig feed, for example, citrus and soy pulp. Because of that, the cycle is already closed for quite a big part. In addition, we buy straw from an arable farmer and the manure goes back to the land.(Conventional pig farmer 1)
An air washer is expensive and it does not produce anything but clean air, and you cannot sell clean air. So we asked ourselves: Is it possible to regain heat with the air washer? Now we not only regain heat but minerals as well. So now we have developed a system in which heat is available unrestrictedly, without using fossil fuels.(Conventional broiler farmer)
We never use antibiotics, the broilers are never sick, there is enough heat, also during the winter and the farming system is better for animal welfare than at the most other farms with slower growing broilers. Slower growing broilers cost 40% more raw materials and the need for energy is much bigger (in that case gas is still needed). The consequences of that choice are; thus, far-reaching.(Conventional broiler farmer)
3.4. Farmers’ Opinions about the Dutch CA Ambitions
I was glad with the Dutch Ministry of Agriculture’s ambition regarding circular agriculture, but if it does not lead to transition towards a resilient system it will be not of much use. If we go on keeping so many pigs and chickens, a circular agriculture is just not possible. The food system should be arranged at a local level and for our own food provisioning. On a world-wide scale we should arrange food production at local levels in order to close cycles. And we should be deeply ashamed of ourselves that the Netherlands are the second exporting country of agricultural products in the world.(BD multifunctional farmer 1)
Of course I subscribe to the vision that we have to move into the direction of circular agriculture, but there are still many open ends that need elaboration. We are talking about carbon, nitrate, biodiversity, soil fertility, for instance, but in the vision of the Ministry such words are mentioned but not elaborated in more detail. If the Ministry is really serious about circular agriculture, it is important to really go for it. This also holds for farmers who want to take steps into the direction of circular agriculture. You have to go to the left or to the right. You cannot keep on walking in the middle, a little bit of circular agriculture, a little bit of nature conservation, that is not possible.(BD multifunctional farmer 2)
The Dutch ambition with regard to circular agriculture is noble and beautiful, but the literal meaning of circular agriculture gradually disappears to the background. A genuine circular farmer should really close cycles, preferably at farm level, but if that is not possible, at local level. You cannot call it circular farming when the feed still comes from elsewhere in the world, can you? The Ministry should be stricter about that. In my opinion you cannot call it circular agriculture if you still use artificial fertiliser from whatever place in the world. You are not a circular farmer when you use concentrate from South America. Possibly you are not even trying to be one if you still need such fertilisers or concentrate. Circular agriculture is used as greenwashing, I am afraid, and runs the risk of being applied by taking very small steps at such a pace that hardly anything will be changed in 10 years’ time.(Nature-inclusive mixed farmer)
I have a very positive attitude towards circular agriculture, provided that it is real circular agriculture. The concept of circular agriculture used by policymakers is a surrogate: As long as no less livestock is kept, it will not be possible to talk about real circular agriculture. At this moment one especially looks for technological solutions. In essence, the current, non-circular agricultural system is not really in transition.(BD dairy farmer)
The vision of the minister is nicely written, but it should have been more decisive and demanding. Now, the vision gives me a strange feeling. What does the vision want from the farmers? The vision seems to be written so carefully as to prevent farmers from rising up in arms against it.(BD outdoor pig farmer)
The vision does not go far enough. It has been written under the approval of organisations that represent vested farmers’ interests. An ambition of closing nutrient cycles at the level of North Western Europe is not that difficult. You only have to stop using soy. This can be arranged within five years. In other words, the vision is rather cautious than ambitious. I can understand that, given the economic interests at stake and the dependency of so many companies and employees of the conventional ways of farming and trade.(Outdoor pig farmer)
I like the vision with regard to circular agriculture. But I have much doubts about the business model behind the vision. A lot of my friends are “green” political voters but they do not buy organic food.(Farmer with special livestock)
The vision needs implementation in practice. You can make calculations about everything in theory. But what about practical applicability? How can you change the feed composition for dairy cows producing 10,000 L per year? That is simply not possible.(Cooperating farmer)
The vision is nice, but to realise it... A big part of livestock farming already works with cycles, but these cycles should be closed further. It will be difficult to grow all feed in the Netherlands. There is simply not enough land available to realise this. It could be possible on a European scale though.(Conventional pig farmer 1)
In China only about 11% of the land is suitable for agriculture. If this land would apply for circular agriculture, hundreds of millions of Chinese would starve. This also holds for the Netherlands: We do not have enough fertile land for producing enough food via circular agriculture. There is a lobby against import and export and that is nonsense: 80% of the raw materials needed for farming come from the West-European region.(Conventional broiler farmer)
4. Discussion and Conclusions
4.1. Farmers as a Proxy of the Role of SMEs in CE
4.2. Contrasting and Complementary Approaches
“We should not simply stick the label ‘transformation’ on any amendment to the status quo, or call each technological efficiency gain an ‘innovation.’ If the benchmark for the changes to which we aspire is not radically different to the one that has guided development solutions so far, humanity will not escape those strong path dependencies. At the same time, dismissing the role that incremental steps play in getting there means ignoring the insights that complex system research offers about patterns of change. So juxtaposing the two approaches as entirely separate strategies—a practice often used to discredit someone else’s proposals—does not help. What helps is to keep each other challenged with respect to both the radicalness of the imagined outcomes (what do we deem possible) and the amount of change in this direction that the next, often little, steps could bring (what do we do to make it happen).”
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
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Type of Farm | Critical Performance Indicators for Circular Agriculture | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Adaptive or Alternative? | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
Community farm | Alternative | + | + | + | + | + | + | + | |||
Biodynamic multifunctional farm 1 | Alternative | + | + | + | + | + | + | + | + | + | |
Biodynamic multifunctional farm 2 | Alternative | + | + | + | + | + | + | + | + | + | |
Conventional mixed nature inclusive farm | Alternative | + | + | + | + | + | + | + | + | ||
Biodynamic outdoor pig farm | Alternative | + | + | +/− | + | + | + | ||||
Outdoor pig farm | Alternative | + | + | + | +/− | + | + | + | + | ||
Farm with special livestock | Alternative | + | + | + | + | + | |||||
Organic mixed farm | In between | + | + | + | + | + | +/− | + | + | + | |
Biodynamic dairy farm | In between | + | + | + | + | +/− | + | + | |||
Cooperation between conventional arable and livestock farms | In between | + | + | + | + | +/− | +/− | + | + | ||
Conventional broiler farm | Adaptive | + | + | + | |||||||
Conventional pig farm 1 | Adaptive | + | +/− | ||||||||
Conventional pig farm 2 | Adaptive | +/− | +/− | + | + |
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Dagevos, H.; Lauwere, C.d. Circular Business Models and Circular Agriculture: Perceptions and Practices of Dutch Farmers. Sustainability 2021, 13, 1282. https://doi.org/10.3390/su13031282
Dagevos H, Lauwere Cd. Circular Business Models and Circular Agriculture: Perceptions and Practices of Dutch Farmers. Sustainability. 2021; 13(3):1282. https://doi.org/10.3390/su13031282
Chicago/Turabian StyleDagevos, Hans, and Carolien de Lauwere. 2021. "Circular Business Models and Circular Agriculture: Perceptions and Practices of Dutch Farmers" Sustainability 13, no. 3: 1282. https://doi.org/10.3390/su13031282
APA StyleDagevos, H., & Lauwere, C. d. (2021). Circular Business Models and Circular Agriculture: Perceptions and Practices of Dutch Farmers. Sustainability, 13(3), 1282. https://doi.org/10.3390/su13031282