Circular economy of the agricultural sector: Strategies and challenges in the context of globalisation

Abstract

The study aimed to validate the necessity of formulating and executing plans for incorporating the concepts of the circular economy into Ukraine's agriculture sector, while considering the impacts of globalisation and problems arising from the war. This study examined the fundamental principles and intellectual underpinnings that differentiate the circular economy from the conventional economic model. The undamental concept of the circular economy in the agricultural sector was justified, and the primary benefits of implementing this economic model in the field of agriculture were established. The European Commission has approved the strategy for the Common Agricultural Policy for the period 2023-2027. This strategy emphasises the primary responsibilities that EU member states must undertake to implement the principles of the circular economy in agriculture. The primary patterns in the operation of agriculture in Ukraine are recognised, and the significance of the agricultural sector in the framework of gross domestic product (GDP) formation and foreign exchange profits is established. The destruction of infrastructure, mining activities, and occupation of regions resulted in a decline in the cultivated land and animals, leading to a loss in physical productivity. Due to the war, there has been a decline in production and logistics capabilities, resulting in a large fall in the export of agricultural products. Consequently, the profitability of firms in this sector of the Ukrainian economy has also decreased. Ukrainian agricultural firms lack the financial resources to independently support creative development, which includes the implementation of new technology solutions that form the foundation of the circular economy. Considering the effects of globalisation and military conflict, it is justified that prioritising innovation and investment support, particularly by the State, should be a strategic direction for implementing the principles of the circular economy of agriculture in Ukraine. This approach will enhance economic efficiency and create new opportunities

Keywords

• agriculture
• closed-loop model
• sustainable development
• waste recycling
• regenerative agriculture
• biotechnology