Frequently Asked Questions

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Frequently asked questions

What is the circular economy and how does it apply to food systems?

The circular economy is an alternative to the linear economy that is focused on “take-make-dispose”. The circular economy model is focused  on minimizing waste & pollution, and maximizing the reuse of resources. In food systems, this means reducing food waste, using sustainable sourcing for ingredients, repurposing food by-products, and adopting practices like composting and regenerative agriculture to create a more sustainable food supply chain.

Circularity in food businesses can create new income streams and reduce costs:

  • Minimizing waste and improving resource efficiency. For example: turning an agricultural by-product into an energy source instead of paying for energy costs. 
  • Create new revenue streams by creating circular economy (food) products. For example by turning banana leftovers into banana bread rather than wasting it.
  • Enhance brand reputation through sustainable practices, and meet growing consumer demand for eco-friendly products.
  • Re-allocate staff to different farming activities For example: farm introduced cover crops, which resulted in less labour for weeding activities and could allocate time and resources to different farming activities. 

You can start by evaluating your food sourcing, production processes, and waste management. Consider using local, sustainable ingredients, reducing packaging waste, implementing composting programs, and finding ways to reuse food waste (e.g., turning food scraps into animal feed or bioenergy).

Examples include reducing food waste through better inventory management, composting organic waste, using packaging made from recyclable or biodegradable materials, creating closed-loop supply chains, or turning food scraps into value-added products like sauces or animal feed.

Please click on this link to see real-life examples of the programme Circular Food Systems for Rwanda.

While reducing food waste is a key part of circularity, it’s just one aspect. 

Circularity is about the entire system, from designing a system or process at the beginning up to how waste streams are reused at the end of the system.

Circularity in food systems also involves designing products with a longer life cycle (e.g. turning mushrooms into a mushroom soup), reusing agricultural by-products into a new product or resource (e.g. turning corn cobs into animal feed or coffee husks into coffee pellets/energy source to dry coffee), sourcing locally and sustainably, and creating closed-loop systems that minimize waste across the entire food supply chain.

While a circular economy is about rethinking the entire system, recycling is the last resort of the circular economy.

Circularity can be applied to startups but also to existing companies that are in transition towards a circular economy. A startup can be designed whereby the circular economy is at the heart of the company’s strategy. For instance, a company that turns organic food waste into an organic fertilizer and animal by growing black soldier flies. 

An existing food company can adopt circular economy practices as well. Food businesses can adopt circular practices by starting with simple actions like reducing packaging waste, using local and sustainable ingredients, composting organic waste, or using agricultural by-products as a new source. For example, a coffee processing company can turn coffee husks into pellets and can use the husks as an energy source for the coffee drying machine instead of firewood.

In some areas, food businesses can benefit from financial incentives such as subsidies, grants, or tax breaks aimed at promoting sustainability and waste reduction. Additionally, reducing waste and improving resource efficiency can lead to long-term cost savings for food businesses.

Understanding Circularity in Business

The circular economy is a business model that focuses on reducing waste and making the most of existing resources. It encourages strategies such as designing for durability, reusing components, refurbishing products, and recycling materials rather than relying on linear "take-make-dispose" approaches. This model helps businesses reduce costs, improve efficiency, and contribute to sustainability by keeping materials and products in use for as long as possible.

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Bringing Circularity into Your Business

If your company creates tools, services, or systems that others rely on like a tech firm helping food processors reduce waste or a machinery supplier offering repairable equipment you have real power to influence how circularity works in practice.

Circular businesses focus on designing out waste, keeping products and materials in use, and regenerating natural systems. That might mean offering equipment-as-a-service, building with recyclable components, or developing tech that helps customers optimize resources. But it also means working across teams and supply chains, measuring what matters, and finding ways to make sustainability part of how you grow.

Resources
To understand the circular business models, read: The Circular Business Model
Read more about the collaboration: Create the conditions for collaboration

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Design, Material Use and Current Practices

The materials your business uses and how you design your products or services have a big impact on both the environment and your business model. From packaging and components to operational waste, making smarter choices can help reduce costs & environmental harm, improve resource efficiency, and support your transition to a circular model.

If you're a business creating technology, equipment, or providing services in sectors like farming, manufacturing, or logistics, this section will help you reflect on how sustainable and circular your current practices really are.

More information

Using non-biodegradable materials can lead to more pollution, waste buildup, and long-term costs for your business. On the other hand, choosing biodegradable, recyclable, or sustainably sourced materials can reduce environmental harm while opening up opportunities to save money and generate new income.

In a circular economy, smart material choices support resource recovery, reduce waste, and make your operations more efficient. For example, reusing packaging, repairing tools, or setting up return-and-reuse programs can extend product life and lower costs. These actions not only protect the environment but also reduce dependence on expensive inputs and landfill fees.

Resources

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Asset Management

Resources

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Future Goals and Commitment to Circularity

As businesses increasingly focus on circular practices, it's important to understand where they are on their sustainability journey and what steps they plan to take in the future. This section aims to gather insights into your business's goals for integrating circular economy principles, your level of commitment, and any challenges or opportunities you foresee.


More information

Adopting a circular economy involves setting clear, long-term goals focused on minimising waste and maximising resource efficiency. Key steps include sustainable sourcing, designing for reuse or recycling, and improving supply chain practices. While barriers like lack of resources or knowledge are common, many online resources, training programs, and industry partnerships are available to help businesses navigate these challenges and successfully implement circular practices.

Resources

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Understanding Circularity

The circular economy is an economic model that minimizes waste and maximizes available resources. It emphasizes reusing, repairing, refurbishing, and recycling products and materials instead of discarding them. The goal is to create a closed-loop system where resources are continuously cycled through the economy, reducing the need for new raw materials and decreasing environmental impact. Sustainability, resource efficiency, and waste reduction are central principles in a circular economy.

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Implementing Circularity

Investing in circular business models means designing products and services that minimize waste, maximize resource efficiency, and promote sustainability through strategies like durability, repairability, and closed-loop supply chains. Successfully implementing circularity requires engaging staff, suppliers, and customers to align on goals, secure sustainable materials, and foster awareness and trust. Collaboration with policymakers and communities further strengthens circular food systems by shaping supportive regulations, driving innovation, and ensuring economic and social benefits. By strategically investing time and resources, businesses can create lasting impact, future-proof their operations, and accelerate the transition to a sustainable circular economy.

Resources:

To understand the circular business models, read: The Circular Business Model

Read more about the collaboration:  Create the conditions for collaboration

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Material Use, Savings and Revenue Opportunities

Using non-biodegradable materials can lead to more pollution, waste buildup, and long-term costs for your business. On the other hand, choosing biodegradable, recyclable, or sustainably sourced materials can reduce environmental harm while opening up opportunities to save money and generate new income.

In a circular economy, smart material choices support resource recovery, reduce waste, and make your operations more efficient. For example, reusing packaging, repairing tools, or setting up return-and-reuse programs can extend product life and lower costs. These actions not only protect the environment but also reduce dependence on expensive inputs and landfill fees.

 

Resources:

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Material Recovery

Managing waste plays a key role in sustainability. Plastic materials can often be recycled or reused, reducing environmental impact. Organic waste and crop by-products like corn cobs can be valuable for compost or animal feed. Even wastewater from washing crops can be treated and reused to save water. Understanding how waste is handled helps make the most of resources and supports long-term environmental health. Find out what you can do, to make your business more efficient. 

Resources 

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Future Goals and Commitment to Circularity 2

Adopting a circular economy involves setting clear, long-term goals focused on minimizing waste and maximizing resource efficiency. Key steps include sustainable sourcing, designing for reuse or recycling, and improving supply chain practices. While barriers like lack of resources or knowledge are common, many online resources, training programs, and industry partnerships are available to help businesses navigate these challenges and successfully implement circular practices.

Resources

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