Circular economy opportunities and implementation barriers for Australia's food, feed and fibre production

Abstract

Minimising wastage and maximising efficient use of resources is not a new concept to the Australian agricultural sector. It is in the pursuit of these concepts that many innovations have arisen. However, Australia generates 74 million tonnes of waste each year, including 7.6 million tonnes of food and 227,000 tonnes of clothing fibres ending up in landfill. This paper illustrates the current circularity of Australia’s agricultural production systems and describes the opportunities for farmers to harness the transition to a circular economy in different sectors. Using data from the National Food Waste Baseline, we highlight that a vast majority (77%) of resources from food production is either reused, recycled or recovered, meaning Australian agriculture already contributes a lot to the circular economy, and continues to innovate in this space. Australia’s natural fibre production is largely exported for overseas manufacturing to create large amounts of clothing imports (373,000 tonnes annually), and despite this fragmentation of the on-shore fibre and textiles value chain there are initial shifts to accelerate the substantial opportunities for on-shore circularity. This paper also highlights potential disruptions and opportunities for enhancing the circularity across our agricultural resources. This includes supporting new business models and cross-value chain opportunities. We conclude with some future challenges and propose some practical next steps and policy considerations to transition a more circular agricultural economy.