Circular Business Model Design for Transitioning the Italian Olive Oil Sector into Sustainable Trajectories

The call for a transition to a circular economy model has gained momentum, challenging the conventional industrial systems. This research focuses on the agri-food system. Shifting towards a circular agri-food system demands collaborative efforts within and between agro-ecological and agro-industrial subsystems, along with active consumer involvement. While suitable technologies exist, operationalizing them within fully functioning circular systems remains a challenge. This study explores the barriers within the agri-food supply chain, particularly in the context of olive oil production in the Apulian and Sicilian regions of Italy. To address these challenges, a three-step analytical strategy is proposed. First, a comprehensive understanding of the current supply chain structure is obtained through semi-structured interviews. Second, an inductive analysis identifies key dimensions combining environmental issues, CE solutions, and transition challenges. This process aligns with the multi-level perspective of socio-technical transitions. Finally, an iterative co-design process involving stakeholders aims to develop circular business models tailored to local needs and sustainability challenges. Preliminary findings reveal critical areas such as environmental concerns, organizational and coordination issues, knowledge gaps, and consumer culture. These findings will inform the co-design phase, facilitating the development of circular business models aligned with the key dimensions. This research contributes to the shift towards CE in agri-food systems by providing a user-driven approach for designing circular business models at the farm and firm levels. It emphasizes the importance of collaboration between academics and industry stakeholders in creating effective CE transition pathways for agri-food systems.