THEORETICAL FOUNDATIONS FOR THE IMPLEMENTATION OF CIRCULAR MODELS IN THE AGRIFOOD BUSINESS: INTERNATIONAL AND DOMESTIC EXPERIENCE

Abstract

The article discusses the role of agriculture as the primary sector of the economy in all countries, serving as the historical foundation for the development of human civilization and the source of national and global food security. The study aims to systematize existing developments and analyze domestic and international experiences implementing circular models in the agrifood business. The study analyzes the environmental damage caused by traditional agricultural practices, which have become the focus of increased attention. It substantiates the significant negative impacts of these practices, including the rise in CO2 emissions, degradation of productive soils, pollution of water and air resources, reduction of biodiversity, and the irrational use of natural and biological resources. The research reveals that a critical issue in the agricultural business and related food industry sectors is the growing volume of industrial and food waste, which continues to rise annually despite the global challenge of ensuring food supply for the population. This shift has resulted in the emergence of fundamentally new business models - circular models based on sustainable forms and methods of production and consumption. Such new business models in the agrifoodagri-food sector are designed to be multifunctional in achieving food security, ensuring economic benefits, and integrating social and environmentally sustainable development tools. The research substantiates that countries of the European Union consider circular economy business models as a central element of future development and economic growth in their “Green Deal” and “Farm to Fork” strategies. The study identifies critical characteristics of circular business models in the agrifood sector, including their ability to close internal integration links among critical participants in value creation chains, close one or more production cycles, maximize the retention of waste value, and minimize negative environmental impacts. The study provides insights into the significance of circular business models in enhancing the efficiency and sustainability of the agrifood sector, revealing their multifaceted benefits for producers, consumers, and society.