Diffusion of circular economy practices in the UK wheat food supply chain

Abstract

Circular Economy (CE) is a framework for sustainability based on restorative and regenerative systems. This paper presents preliminary findings from an ongoing case study of the British wheat food supply chain, using dimensions of Transaction Cost Economics (TCE), to clarify the role of transactions in the diffusion of CE practices. It uses content analysis of semi-structured interviews to elucidate what CE practices and material flow are in operation in the supply chain. While financial considerations are the main factor driving CE adoption, transactions can also function as an indirect driver to CE adoption via assurance/certification schemes requirements that also reduce overall uncertainty. Asset specificity does not play a significant role in the wheat food circular supply chain, except for specific (niche) programmes. Verticalised operations and repeated, long-term partnerships between buyers and suppliers facilitate CE-related transactions since high uncertainty act as a barrier to CE operations.