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Circularity
Trash or Unrealised Profits?

The feed industry is innately circular in many ways: whether upcycling from Brewer's spent grains to consumer waste as pig feed in East Asia. But there's another level that's full of opportunity and return on investment: taking steps to function more like a natural ecosystem, where nothing is wasted, and every output becomes an input, true efficiency.

Confronting trade tensions, rising costs, customer expectations, resource scarcity, and regulations requires a next level of analysis and action. Today, if you know of any major waste stream it's worth asking "What are the molecules in this ‘waste’, and where could they be useful?"

 
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Now whey protein is a $11 billion dollar market with a 7-10% compound growth rate.

DAIRY WHEY

Think of dairy whey. Just a few decades ago farmers would pour it down the road. They couldn't see any use for whey. Now whey protein is a $11 billion dollar market with a 7-10% compound growth rate.

Key areas for circular exploration are how fermentation, enzymatic hydrolysis, pyrolysis and other bioprocessing methods can make useful industrial by-products, emissions, and processing residues.

Circularity in-action is already reshaping how ingredients, nutrients, and resources flow through the system - but there are also big untapped opportunities. Initiative, innovation and scale are key.

Click here to visit FAO's LEAP program for more circular case study examples.

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repurposing human food by-products

One of the most effective ways to make feed more circular is by repurposing human food by-products (bakery goods, starch residues, confectionery waste, vegetable trimmings) that would otherwise be wasted.

These materials still hold high nutritional value. A leading example is Nijsen Company in the Netherlands, which converts 100,000+ tons of food-industry by-products each year into high-grade feed for pigs and poultry.

Their 'Food for Feed for Food' model closes the loop between food production and animal nutrition, shortening supply chains and cutting feed-related CO₂ emissions by up to 50%. Similar models are already emerging in countries with strict food-quality or aesthetic standards.

The FAO estimates that one-third of all food produced, about 1.3 billion tons annually, is lost or wasted. It also estimates that approximately 20% of food wasted during processing is suitable for use as feed when managed safely.

approximately 
20% of food wasted during processing is suitable for use 
as feed.

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Circular systems redefine efficiency

Circularity at scale looks so good that entirely new business models are emerging that place circularity at the core of production.

The Dutch ZonVarken Cooperative (branded as 'Sun Pig') is one such model. Its pig farms use 100% residual and return streams from the human food chain, with no soymeal or grain explicitly cultivated for feed, producing pork through a fully circular feed system.

It not only closes feed loops but also acknowledges that animal welfare, biodiversity, land use, human nutrition, and farmer livelihoods are all part of the same circle. Pigs are raised in open, shaded environments, fed locally sourced by-products, and marketed under a premium circular meat label that emphasises environmental responsibility.

Globally, similar circular models are emerging: integrated fish–poultry–crop farms in Southeast Asia, insect-based waste valorisation systems in Europe, and feed mills co-located with food factories to capture and reuse process residues.

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System Map

Circularity:
Unlocking True Efficiency

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Circularity also involves recovering scarce minerals; phosphorus is a prime example. It's a nutrient essential for animal and crop growth but sourced primarily from finite phosphate rock deposits.

Global phosphate reserves are geographically concentrated (with over 70% located in Morocco and Western Sahara), making the feed industry vulnerable to geopolitical and supply-chain disruptions.

Recovering these finite deposits requires water and greenhouse gas intensive mining.

The good news is some P is already upcycled when animal manure is applied as fertiliser to crop fields.

But human 'manure' often has even higher P levels because we eat more than we need. And right now, it's a major source of water toxicity in freshwater ecosystems, e.g. algal blooms that suffocate other species.

The feed industry has been working on this pollution issue, and as one solution example, Swedish company EasyMining has developed RevoCaP. It's a recycled calcium phosphate made from incinerated sewage sludge ash.

Recovered phosphorus is a cleaner, circular alternative to mined phosphate that meets EU feed standards, avoids heavy-metal contamination, cuts emission from mining, and water pollution.

The approach is expanding internationally. The Friesen Group is partnering with EasyMining and Ragn-Sells to explore local phosphorus recovery in Canada who currently imports 100% of its phosphate supply.

Innovations like this help regionalise nutrient cycles, reduce reliance on imports, and significantly lower the carbon footprint of feed.

All while lowering ingredient costs!

Precision Feeding Slider
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All Roads Lead Back to Circularity

Circularity is a strategic, pragmatic choice despite the complexity and investment required. It is an investment in resilience, cost stability, and reliable supply and food security.

As resource constraints intensify, the feed industry’s competitiveness will increasingly depend on how effectively it closes by-product and 'waste' loops while reducing exposure to volatile input markets.

Efficiency is important. However, efficiency alone has limits: highly efficient systems can accelerate overall resource depletion if growth continues to rely on finite inputs, increasing long-term cost, supply, and regulatory risk.

Circularity enables the industry to move beyond these limits by redesigning systems themselves. By keeping materials, nutrients, and energy in productive use for longer, circular models reduce dependence on virgin resources, stabilise supply chains, and decouples growth from resource extraction. This positions the feed industry for on-going value creation.

80%

of IFIF 2025 stakeholder survey respondents perceive cost increases as the highest barrier to sustainability.
But the perception may be a higher barrier than actual costs. Especially when there’s so much upside potential.