CIRCULAR ECONOMY AND AGRICULTURAL SECTOR: POINTS OF CONTACT AND PROSPECTS OF SYMBIOSIS

Abstract

The relevance of the research topic is determined by the fact that in the modern agricultural sector in general the development of economic relations is carried out on a linear principle across countries, the motto of which is the triad “get-recycle-utilize”. However, in modern conditions, the most relevant is the organization of economic relations in the agricultural sector based on the principle of sustainable use of all components of renewable resources, in this regard, innovative business models are needed that determine how to process what is currently considered waste.

The problem of the study lies in the fact that during the transition of agricultural enterprises to relationships within a circular economy, it is necessary to take into account certain factors that determine both success and risk. This should include technical, logistical, economic, financial and marketing, organizational and spatial, institutional and legal, environmental, social and cultural factors. At the same time, the specific factors for the agricultural sector are innovative conversion technologies, flexible internal and external logistics, joint investments in R&D, price competitiveness, etc.

The purpose of the study is to consider the points of contact and prospects for the symbiosis of the circular economy and the agricultural sector.

In the analysis of the material, comparative research methods were used, the consideration of the research topic was carried out on the basis of an analysis of sources and publications covering the main conceptual foundations of the development of the circular economy and the agro-industrial complex.

The authors concluded that while several success factors are also crucial for closed-loop business models in general, some of them are very specific to those evaluating agricultural waste and by-products.