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No embe 2025
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Copy igh au ho s 2025 DOI: HTTPS://DOI.ORG/10.5281/ZENODO.17663200
T ansi ioning Ag icul u al P oduc ion Towa d a Ci cula Economy:
Oppo uni ies and Challenges in De eloping Coun ies
Pham Thi Kiem
School o Economics, Hanoi Uni e si y o Indus y
Email: [email p o ec ed]
Abs ac : Ag icul u e in de eloping coun ies s ill elies on a linea model o “ex ac –
p oduce–consume–dispose,” which unde mines esou ce e iciency and con ibu es o
en i onmen al deg ada ion. The ci cula economy (CE) o e s a ans o ma i e al e na i e by
p omo ing esou ce egene a ion, ecycling, and was e alo iza ion. This pape explo es he
oppo uni ies and challenges o applying CE p inciples in ag icul u e, using heo e ical
ounda ions om ecological sys ems heo y and sus ainable inno a ion, while d awing lessons
om in e na ional expe iences in he Eu opean Union, China, and India. Key oppo uni ies
include mo e e icien use o land, wa e , and inpu s; alue c ea ion om ag icul u al by-
p oduc s such as biogas and o ganic e ilize s; alignmen wi h Sus ainable De elopmen Goals
(SDGs 2, 12, 13, and 15); and expanded access o global ma ke s o sus ainable p oduc s.
Howe e , majo ba ie s pe sis , including inadequa e policy amewo ks, limi ed access o
g een inance, weak echnological capaci y, eliance on adi ional p ac ices, and di icul ies in
mee ing quali y s anda ds. The s udy p oposes a phased oadmap ha combines sho - e m
awa eness and pilo p ojec s, medium- e m expansion o success ul models wi h inancial and
in as uc u al suppo , and long- e m ins i u ionaliza ion o CE p inciples in na ional
s a egies. Coo dina ed e o s among go e nmen s, ag ibusinesses, coope a i es, and a me s
a e essen ial o ealize he po en ial o CE in ad ancing sus ainable and inclusi e u al
de elopmen .
Keywo ds: Ci cula Economy, Oppo uni ies, Challenges, De eloping Coun ies,
Ag icul u al P oduc ion
1. In oduc ion
In many de eloping coun ies, ag icul u e s ill elies hea ily on he linea economic
model o “ex ac –p oduce–consume–dispose.” (Yin, Jia, Chen, & Wang, 2023). This
app oach, which once suppo ed apid ag icul u al expansion, now c ea es g owing
ine iciencies and unsus ainable p essu e on na u al esou ces (Chowdhu y e al., 2022).
Dependence on chemical inpu s, excessi e wa e use, and land exploi a ion ha e accele a ed
he deple ion o ecosys ems, while ag icul u al was e o en ends up as unmanaged pollu ion.
As a esul , he adi ional model no only unde mines p oduc i i y in he long e m bu also
exposes u al communi ies o highe ulne abili y in he ace o en i onmen al and economic
shocks (Ghai han, Alshammakhi, Mohammed, & Mazhe , 2023).
The limi a ions o his linea sys em a e inc easingly e iden . Soil e ili y is declining
a a apid pace, eshwa e sou ces a e being con amina ed by chemical uno , and
monocul u e p ac ices educe biodi e si y and esilience (Rod íguez-Espíndola e al., 2022).
Clima e change u he magni ies hese isks, lea ing smallholde a me s—who o m he
backbone o ag icul u al p oduc ion in many de eloping egions—pa icula ly exposed o
wea he a iabili y, d ough s, and loods. These sys emic weaknesses highligh he u gency o
iden i ying a mo e sus ainable amewo k o ag icul u al p oduc ion ha can balance
economic g ow h wi h en i onmen al p ese a ion and social well-being.
In e na ional Jou nal o Resea ch (IJR)
e-ISSN: 2348-6848
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In his con ex , he ci cula economy (CE) eme ges as a ans o ma i e solu ion (Ka ou,
Ka e zopoulos, & Vayona, 2023). By eimagining ag icul u al sys ems as egene a i e a he
han ex ac i e, CE p omo es he euse o by-p oduc s, ecycling o o ganic was e, and he
design o closed-loop alue chains. This shi can con e ag icul u al esidues in o bioene gy,
o ganic e ilize s, and bioma e ials, he eby c ea ing addi ional e enue s eams o a me s
while educing dependency on ex e nal inpu s. Mo e b oadly, CE o e s a pa hway o align
ag icul u e wi h global sus ainable de elopmen goals by linking p oduc i i y wi h ecological
s ewa dship and echnological inno a ion.
The objec i e o his a icle is o analyze he oppo uni ies and challenges in ol ed in
ansi ioning ag icul u al p oduc ion sys ems owa d a ci cula economy in de eloping
coun ies. I aims o highligh how CE can os e esou ce e iciency, enhance u al li elihoods,
and educe en i onmen al deg ada ion, while also iden i ying he ins i u ional, inancial, and
beha io al ba ie s ha hinde i s implemen a ion. By syn hesizing heo e ical ounda ions wi h
in e na ional expe iences and con ex ual eali ies, he s udy p o ides insigh s o policymake s,
esea che s, and p ac i ione s seeking o p omo e sus ainable ag icul u al ans o ma ion in
esou ce-cons ained se ings.
2. Li e a u e e iew
The concep o he ci cula economy (CE) ep esen s a undamen al depa u e om he
con en ional linea model o economic g ow h. Unlike he linea app oach o “ ake–make–
dispose,” (Siddik, Yong, & Rahman, 2023). CE emphasizes he con inual use o esou ces
h ough p ocesses such as ecycling, euse, and egene a ion. In ag icul u e, his means
ans o ming p oduc ion sys ems om ex ac i e p ac ices in o closed loops, whe e ou pu s
such as c op esidues, animal was e, and by-p oduc s a e ein eg a ed in o he p oduc ion cycle.
The dis inc ion is c ucial: while linea ag icul u e p io i izes sho - e m yields a he expense
o long- e m esou ce a ailabili y, CE ocuses on esilience, e iciency, and sus ainabili y,
aiming o main ain he alue o esou ces o as long as possible(Mo a-Con e as, To es-
Gue a a, Mejia-Villa, O mazabal, & P ie o-Sando al, 2023).
Figu e 1. The concep o he ci cula economy (Sou ce: MacA hu Founda ion)
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The heo e ical ounda ions o CE in ag icul u e d aw hea ily on ecological sys ems
heo y and he heo y o sus ainable inno a ion. Ecological sys ems heo y unde sco es he
in e dependence be ween human ac i i y and na u al ecosys ems, aming ag icul u e as pa
o a b oade ecological cycle a he han an isola ed p ocess. Meanwhile, sus ainable
inno a ion heo y highligh s he ole o echnological ad ancemen , o ganiza ional change, and
policy suppo in enabling ansi ions owa d en i onmen ally sound and socially inclusi e
ag icul u al p ac ices. Toge he , hese pe spec i es p o ide a s ong concep ual basis o
unde s anding how ci cula p inciples can be embedded in ag icul u al p oduc ion sys ems
(Yap & Chua, 2018).
In e na ional s udies p o ide aluable e idence o how CE can be implemen ed in
ag icul u al con ex s. In he Eu opean Union, policies and ini ia i es such as he Common
Ag icul u al Policy (CAP) ha e p omo ed was e educ ion, enewable ene gy gene a ion om
ag icul u al esidues, and sus ainable ood sys ems. In China, pilo p og ams on ci cula
ag icul u e ha e emphasized in eg a ed c op–li es ock sys ems and he alo iza ion o
ag icul u al by-p oduc s in o bioene gy. India has also ad anced ci cula p ac ices h ough
biogas p oduc ion, compos ing, and he adop ion o o ganic a ming models in u al
communi ies. These cases illus a e di e se s a egies o ope a ionalize CE in ag icul u e, while
also e ealing he impo ance o ins i u ional amewo ks and local adap a ion.
Despi e hese ad ances, signi ican esea ch gaps emain, pa icula ly in he con ex o
de eloping coun ies. Exis ing li e a u e o en ocuses on mac o-le el s a egies o success
s o ies om indus ialized na ions, bu p o ides limi ed insigh s in o he unique socio-
economic, ins i u ional, and echnological cons ain s aced by esou ce-cons ained egions.
Few s udies o e a comp ehensi e analy ical amewo k ailo ed o he eali ies o de eloping
economies, whe e smallholde a me s domina e and in as uc u e is weak. Add essing his
gap is essen ial o ensu e ha CE models a e no only heo e ically sound bu also p ac ically
easible and scalable in se ings whe e hey a e mos u gen ly needed (Iqbal, Ahmad, Nasim,
& Khan, 2020).
3. Oppo uni ies in CE applica ion in ag icul u e
One o he mos signi ican oppo uni ies o e ed by he adop ion o ci cula economy
(CE) p inciples in ag icul u e is he po en ial o enhance esou ce e iciency. By closing
nu ien and wa e cycles, CE can educe eliance on ex e nal chemical inpu s and minimize
was e. Techniques such as p ecision i iga ion, o ganic e iliza ion, and compos ing allow o
mo e sus ainable use o land and wa e esou ces, ensu ing ha na u al capi al is p ese ed o
u u e gene a ions. Fo coun ies acing apid popula ion g ow h and inc easing p essu e on
a mland, hese imp o emen s in e iciency can di ec ly con ibu e o ood secu i y and long-
e m ag icul u al p oduc i i y.
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Figu e 2. En y poin s o ci cula economy in he ag icul u e sec o (Sou ce: Ci cula
Ag onomics)
Ano he oppo uni y lies in he c ea ion o added alue h ough he u iliza ion o
ag icul u al by-p oduc s. C op esidues, animal manu e, and o he was e s eams can be
con e ed in o bioene gy, o ganic e ilize s, o bio-based ma e ials, educing disposal cos s
while gene a ing new income s eams o a me s. Fo example, biogas p oduc ion om
li es ock was e no only p o ides enewable ene gy o u al households bu also p oduces
diges a e ha can be applied as e ilize . Such inno a ions ans o m was e om a liabili y
in o a aluable asse , s eng hening he economic iabili y o ag icul u al sys ems.
Figu e 3. Possible income pa hways o in eg a ion o ci cula economy p ac ices a he
a m-le el (Sou ce: h ps://www.meda.o g/news/blog/ci cula -economy-p ac ices-in-
ag icul u e-can-c ea e-new-income-pa hways-he es-how/)
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The ci cula economy app oach also aligns di ec ly wi h he global sus ainable
de elopmen agenda. By p omo ing e icien esou ce use, educing en i onmen al
deg ada ion, and enhancing esilience, CE suppo s se e al Sus ainable De elopmen Goals
(SDGs), including SDG 2 (Ze o Hunge ), SDG 12 (Responsible Consump ion and P oduc ion),
SDG 13 (Clima e Ac ion), and SDG 15 (Li e on Land). In eg a ing CE p inciples in o
ag icul u e ensu es ha ood sys ems a e no only p oduc i e bu also socially equi able and
en i onmen ally sound, helping de eloping coun ies mee hei in e na ional commi men s
while add essing domes ic challenges.
Finally, he shi owa d g eene and mo e sus ainable ag icul u al p ac ices opens
oppo uni ies o expanding access o in e na ional ma ke s. As consume demand o o ganic,
eco-labeled, and sus ainably p oduced goods con inues o ise, coun ies ha embed CE
p ac ices in o hei ag icul u al alue chains can posi ion hemsel es compe i i ely in global
ade. P oduc s ce i ied as en i onmen ally iendly o clima e-sma ca y a ma ke p emium,
c ea ing incen i es o a me s and ag ibusinesses o in es in ci cula p ac ices. Fo
de eloping economies, his c ea es a dual bene i : ad ancing en i onmen al sus ainabili y
while gene a ing new a enues o expo -led g ow h.
4. Challenge in CE applica ion in ag icul u e
A c i ical challenge in implemen ing ci cula economy (CE) models in ag icul u e is
he absence o clea policy amewo ks and egula o y suppo . In many de eloping coun ies,
policies emain agmen ed, ocusing on sho - e m p oduc i i y a he han long- e m
sus ainabili y. Wi hou well-de ined incen i es, guidelines, o en o cemen mechanisms,
a me s and ag ibusinesses o en lack di ec ion and mo i a ion o shi owa d ci cula
p ac ices. The lack o ins i u ional coo dina ion among minis ies o ag icul u e, en i onmen ,
and ene gy u he complica es he c ea ion o in eg a ed s a egies necessa y o sys emic
change.
Limi ed access o inance ep esen s ano he signi ican ba ie . T ansi ioning o
ci cula ag icul u e o en equi es subs an ial up on in es men s in in as uc u e, equipmen ,
and aining. Ye smallholde a me s, who domina e ag icul u al p oduc ion in de eloping
economies, ypically ace di icul ies in accessing c edi and ha e limi ed exposu e o g een
inance ins umen s. The absence o isk-sha ing mechanisms, subsidies, o a ge ed
in es men p og ams discou ages inno a ion and delays adop ion. Wi hou s onge inancial
suppo sys ems, he mo e owa d ci cula models emains slow and une en.
Technological capaci y is also a majo cons ain . Many ci cula p ac ices—such as
was e- o-ene gy con e sion, p ecision a ming, and bio-based ma e ial p oduc ion— equi e
ad anced echnologies and specialized knowledge. De eloping coun ies equen ly ace gaps
in esea ch, ex ension se ices, and echnical expe ise, making i di icul o deploy hese
solu ions a scale. Mo eo e , weak in as uc u e o s o age, p ocessing, and dis ibu ion
hampe s he in eg a ion o ci cula sys ems ac oss ag icul u al alue chains, esul ing in
ine iciencies and los oppo uni ies.
The pe sis ence o adi ional a ming p ac ices u he complica es he ansi ion.
Fa me s o en ely on me hods passed down h ough gene a ions, which may p io i ize
immedia e yield o e long- e m sus ainabili y. Resis ance o change can s em om limi ed
awa eness o ci cula app oaches, pe cei ed isks o adop ing un amilia echniques, and
cul u al a achmen o con en ional me hods. E ec i e dissemina ion o knowledge, coupled
wi h us -building h ough a me coope a i es and demons a ion p ojec s, is essen ial o
o e coming hese beha io al ba ie s.
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Finally, ma ke - ela ed challenges and quali y s anda ds c ea e addi ional obs acles.
E en when a me s adop ci cula p ac ices, hey may s uggle o ind eliable ma ke s o eco-
iendly p oduc s due o weak ce i ica ion sys ems, insu icien consume awa eness, and
limi ed in e na ional ecogni ion o local sus ainabili y s anda ds. High compliance cos s o
mee ing expo equi emen s can also exclude smallholde s om accessing p emium ma ke s.
Wi hou s onge ins i u ional amewo ks o ce i ica ion, labeling, and consume educa ion,
he economic incen i es o adop ing CE p ac ices emain cons ained.
5. Discussion
In e na ional expe iences in ad ancing ci cula economy (CE) p ac ices in ag icul u e
p o ide aluable lessons o de eloping coun ies. The Eu opean Union has demons a ed he
e ec i eness o in eg a ing CE p inciples in o ag icul u al policy h ough subsidies o o ganic
p oduc ion, was e- o-ene gy p ojec s, and eco-ce i ica ion schemes. China has pilo ed
in eg a ed c op–li es ock sys ems ha ecycle nu ien s and educe chemical inpu s, while
India has p omo ed biogas p og ams and communi y-based compos ing. These cases show ha
s ong ins i u ional suppo , inancial incen i es, and a ge ed educa ion a e c i ical o d i ing
adop ion. Fo de eloping coun ies, he key lesson is ha ci cula p ac ices mus be adap ed o
local con ex s, conside ing he dominance o smallholde a ming, limi ed in as uc u e, and
di e se socio-economic condi ions.
The success ul ansi ion owa d CE in ag icul u e also equi es ac i e engagemen
om coope a i es, ag ibusinesses, and ci il socie y o ganiza ions. Fa me coope a i es can ac
as in e media ies, pooling esou ces and enabling collec i e in es men s in echnologies such
as biogas plan s o compos ing acili ies. Ag ibusinesses, pa icula ly hose in ol ed in
p ocessing and dis ibu ion, play a pi o al ole in es ablishing alue chains o ci cula p oduc s
and ensu ing ma ke access. Meanwhile, non-go e nmen al o ganiza ions and social
en e p ises con ibu e by aising awa eness, building local capaci y, and ad oca ing o
inclusi e p ac ices ha empowe ma ginalized a ming communi ies. Toge he , hese ac o s
o m a mul i-s akeholde ecosys em ha is essen ial o scaling up ci cula ag icul u e.
To accele a e he adop ion o CE in de eloping-coun y ag icul u e, go e nmen s
should de elop comp ehensi e policy amewo ks ha in eg a e economic, en i onmen al, and
social dimensions. Key measu es include inancial mechanisms such as g een c edi lines and
subsidies o ci cula echnologies, egula o y ins umen s o p omo e was e alo iza ion, and
clea s anda ds o ce i ica ion and labeling o sus ainable p oduc s. In addi ion, in es men in
ag icul u al esea ch, ex ension se ices, and in as uc u e is i al o build echnical capaci y.
S a egic alignmen wi h he Sus ainable De elopmen Goals can u he a ac in e na ional
unding and pa ne ships. By combining suppo i e policies wi h ma ke incen i es and
g ass oo s pa icipa ion, coun ies can es ablish a cohe en s a egy o embed ci cula p inciples
in hei ag icul u al sys ems.
6. Conclusion
The ansi ion om a linea o a ci cula economy (CE) in ag icul u e p esen s bo h
signi ican oppo uni ies and o midable challenges o de eloping coun ies. On he one hand,
CE can enhance esou ce e iciency, gene a e added alue om ag icul u al by-p oduc s, align
a ming wi h global sus ainabili y goals, and open new expo oppo uni ies o eco- iendly
p oduc s. On he o he hand, he shi is cons ained by weak policy amewo ks, limi ed access
o inance, echnological gaps, en enched adi ional p ac ices, and ba ie s in ma ke
s anda ds and ce i ica ion. Recognizing hese dual eali ies is c i ical o designing e ec i e
s a egies ha balance ambi ion wi h easibili y.
In e na ional Jou nal o Resea ch (IJR)
e-ISSN: 2348-6848
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Vol. 12 Issue 11
No embe 2025
Recei ed: 16 Oc obe 2025 327
Re ised: 8 No embe 2025
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Copy igh au ho s 2025 DOI: HTTPS://DOI.ORG/10.5281/ZENODO.17663200
A phased oadmap is needed o guide he adop ion o CE in ag icul u e. In he sho
e m, e o s should ocus on policy alignmen , awa eness- aising, and pilo p ojec s ha
demons a e he economic iabili y o ci cula p ac ices. Medium- e m p io i ies include
scaling up success ul models h ough inancial incen i es, expanding access o g een c edi ,
and s eng hening in as uc u e o was e managemen and alue-chain in eg a ion. In he long
e m, ins i u ionalizing CE p inciples in o na ional ag icul u al and en i onmen al s a egies
will be essen ial, ensu ing ha ci cula p ac ices a e no isola ed ini ia i es bu embedded in
b oade amewo ks o sus ainable de elopmen .
Achie ing his ans o ma ion equi es s ong collabo a ion ac oss go e nmen ,
businesses, and a ming communi ies. Go e nmen s mus p o ide enabling policies, egula o y
cla i y, and inancial ins umen s; ag ibusinesses should in eg a e ci cula p ac ices in o supply
chains and c ea e ma ke demand o sus ainable p oduc s; and a me s, suppo ed by
coope a i es and social o ganiza ions, mus emb ace inno a i e me hods ha balance
p oduc i i y wi h ecological s ewa dship. Only h ough such coo dina ed ac ion can
de eloping coun ies unlock he ull po en ial o ci cula ag icul u e, enhancing ood secu i y,
p o ec ing ecosys ems, and os e ing inclusi e u al de elopmen .
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