Open AccessTransition to the circular economy and new circular business models – an in-depth study of the whey recycling
Author(s) -
Inga Uvarova,
Dzintra Atstāja,
Ugis Grinbergs,
Janis Petersons,
Astrida Gegere–Zetterstroma,
Sandra Kraze
Publication year - 2020
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/578/1/012019
Subject(s) - circular economy , profitability index , sustainability , business , business model , revenue , resource efficiency , competitive advantage , industrial organization , production (economics) , sustainable business , marketing , economics , finance , microeconomics , ecology , biology
Depleting natural resources and large amounts of waste increase the environmental pressure affecting the economy and humans. Emerging sustainability challenges require new behavioural patterns from both the business and consumers. Responding to these constraints, the circular economy is promoted as a new way towards a sustainable future. While the circular economy provides new principles for improving resource efficiency and reducing waste, most of companies run traditional business models with the perception that competitive advantages can be achieved by increasing production. Instead circular business models seek for increase of profitability and efficiency through adapting various business model innovations. However, their adoption process and results are unclear for many industries highlighting the topicality of this article. This research shows that milk processing companies lack an experience and understanding of benefits and challenges of circular business models. In milk processing, the whey is considered as problematic waste or the production leftover, which requires new treatment. The research provides analyses of the whey recycling circular business models that ensured new revenue streams, higher profitability, return on assets and competitive advantages for milk processing companies. The COVID19 pandemia increases the importance of this issue as the dairy industry due to livestock requirements shall ensure business continuity despite a crises or other risks that slowdown the business.