Funded project – Building a sustainable circular economy ecosystem
The project will develop and demonstrate a robust demonstration for a digital B2B platform focused on reducing on-farm waste and increasing profits. The platform will provide a range of tools to inform, promote collaboration, and boost organic waste commercialisation, through the schedule of future harvests, business partnerships, donation actions, and quality control.
Background
ConnectOne Club has been providing consulting services in IT-business intelligence for leading financial firms. The company had success in supporting the agricultural sector in India through a digital platform. ConnectOne Club has helped agricultural organisations expand beyond their local market, attracting more growers and buyers and maximising their farm gate prices. The positive outcomes of this process have led to a significant reduction in food waste.
Furthermore, ConnectOne Club actively participated in the Rocket Seeder accelerator program. The program offered coaching and development opportunities to accelerate the commercialisation of new circular economy business models. Through their involvement in the program, ConnectOne Club received valuable support and guidance to enhance their efforts in an innovative circular business model.
The use of integrating an Artificial Intelligence (AI) application to B2B as a platform will make a considerable advantage to farmers and small growers located in Victoria. The Gippsland region generates approximately 150,000 tonnes of organic waste annually.
The problem
In Victoria, approximately 3 million tonnes of organic waste are generated each year, but less than half of it undergoes proper processing. The existing capacity to handle this substantial volume of waste is insufficient. Victorians discard roughly $4 billion worth of food annually, with nearly two-thirds of the waste being avoidable.
The primary sources of organic waste include farms, commercial and industrial operations such as traders and food processing factories. The lack of efficient integration among these sectors slows down optimal selling and purchasing operations and significantly contributes to the generation of waste in Victoria.
The challenges associated with organic waste are substantial for the circular economy. Its rapid decomposition and vulnerability to bacterial contamination pose significant hurdles. Moreover, the short shelf life of perishable food necessitates prompt consumption, leading to a notable impact on food waste. The emission of unpleasant odours and the creation of breeding grounds for vermin further exacerbate the issue, raising concerns about the potential spread of diseases. Additionally, the decomposition of organic waste releases methane, a potent greenhouse gas that greatly contributes to global warming.
The project
The objective of this project is to offer a suite of digital tools that facilitate the scheduling, aggregation, donation, qualification, and sales negotiation of organic products. By connecting traders within the organic industry, the project aims to minimise organic waste. Rather than discarding materials, non-compliant products, and excess raw materials, food processing manufacturers can participate as sellers and buyers on a digital platform.
The project entails the development and operation of a robust demonstration of a unique digital business-to-business (B2B) platform with AI applications. The project aims to minimise waste, maximise profits for businesses, reduce operational costs and generate additional revenue.
Farmers and traders, who often face considerable pressure to sell their organic products, will have the opportunity to explore new sales channels through the platform. Posting products will be effortless, and the application of AI technology will enable potential buyers to verify quality, size, and other features through pictures of the items.
To ensure a seamless user experience and effective functioning of the platform, a robust infrastructure capable of handling a large volume of user information and B2B activities will be developed. Additionally, the integration of AI technology is crucial to deliver the desired solution to users.
Objectives
The digital platform will be used as a sharing model
The platform will provide opportunities for restaurants, small food processing manufacturers, and even individuals can benefit from this tool. Food processing manufacturers will have the opportunity to act as sellers and buyers on the platform. Instead of discarding materials, non-compliant products, and excess raw materials, businesses can offer them to others through the platform.
Waste avoidance
The digital platform will have the potential to reduce it by a minimum of 5%, (7.500 tonnes) as soon as the demo system is implemented. It is particularly significant for cafes in Victoria, which face a huge challenge in managing the disposal of coffee grounds and coffee cups.
Materials efficiency
The platform will serve as a support system for businesses, enabling them to sell or donate their disposable organic materials to manufacturers and farmers. These products can be offered individually or in groups, providing flexibility for businesses. Small businesses will have the opportunity to gather materials and connect to the platform, expanding their buying and selling capacity. Additionally, NGOs will benefit from the platform by gaining free access to all donations made by platform users. It will contribute to supporting those in need and actively reducing food waste.
The roadmap for circular farms
The Circular Farms Project aims to transform farms into sustainable hubs by connecting them with food upcycling and recycling facilities, redirecting waste into valuable resource channels. The project addresses challenges faced by farms, such as excess production and lower-quality produce, through 4 primary paths: feeding humans, feeding animals, feeding soil, and recycling options.
Distributed or donated upcycled products that are unsuitable produce for human consumption become animal feed. The waste enriches soil through composting or fertilizers, and the remaining materials are recycled. This initiative promotes a circular economy in farming, benefiting the environment and creating value for farmers and businesses.
Project progress
| Key deliverables | Status |
|---|---|
| Inception work-shop summary, analysis, and discovery of business opportunities. Stakeholder mapping and release planning. | Complete |
| Pilot features, system testing and results. Test results and identify opportunities. Marketing and forward planning. | Complete |
| Review pilot findings and developed features. Undertake digital marketing activities. Tracking features and review user feedback through workshops. Develop business case. | In progress |
| Prepare final report to be shared with the public to include data such as aim, method, results, and next steps. |
From the grantee
"The circular economy is important to me as it promotes sustainable practices that enhance both environmental protection and economic growth. I am particularly passionate about fostering community development within this circular framework, which is crucial in establishing sustainable value chains, which led us to create the Circular Farms platform. It is a digital collaboration tool designed for farmer communities and other pivotal stakeholders within this ecosystem," says Vijeesh.
Sustainability Victoria's funding has been instrumental in propelling our project forward. It provided us with the financial support needed to conduct comprehensive market research and establish crucial connections with key players in the ecosystem. The research and networking have given us the necessary insights to make Circular Farms more than just a concept. It's now a reality moving steadily towards achieving our sustainability goals.
