Circular food supply chains: Impact on value addition and safety

Background
The “linear” manufacturing processes generate waste materials and products that after their use end up in landfills and incinerators. Circular supply chains implement one of the basic concepts of the bioeconomy, i.e., collecting waste streams in order to recycle them into new products, thus achieving a more sustainable production system.

Scope and approach
This paper is focused on the application of a circular supply chain concept within the food system, with the aims to: a) outline the advantages of this approach in terms of value addition; b) discuss the impact of the increased complexity of circular supply chains on food safety; and c) propose management solutions. To link theoretical principles with empirical data, winemaking was chosen as a case study because of the high volumes of valuable byproducts produced globally.

Key findings and conclusions
Circular food supply chains can potentially generate added-value foods. However, new loops in the food supply chains could also bring about new risks. The main challenges are likelihood of food contamination and loss of identification due to batch dispersion. Hence, a holistic approach of research is needed to integrate the value addition strategy with risk analysis and to apply forecasting and optimization studies to the whole supply chain. At the operational level, Internet of Things could represent a powerful management tool. Moreover, the management system within a circular supply chain should be conceived and implemented beyond the company level, involving all the trading partners in order to ensure high transparency, interconnectivity and thus efficacy.