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<p>This paper examines the development and implementation of a circular supply chain model for biogas production at a dairy farm in the northern Netherlands. Renowned for its dairy products such as cheese, butter, and milk, the Netherlands is a major player in the global dairy industry, and the most active dairy country within the EU. In 2024, the Dutch dairy industry achieved a turnover of 6.6&#xa0;billion euros. However, this sector faces significant environmental challenges. According to the National Central Bureau for Statistics in the Netherlands, agriculture is responsible for 91% of total ammonia emissions, with dairy farms responsible for approximately 48% of total agricultural emissions (around 53 kilotons annually) in 2024. This substantial amount of ammonia emissions threatens Dutch nature environment and agricultural ecosystem. The Dutch dairy industry should explore how to contribute to achieving sustainable development goals, particularly in reducing greenhouse gas emissions and enhancing food security. The traditional Dutch linear food system follows a produce-and-consume or disposal model, where all materials move in one direction; the reuse and recycling of resources, by-products, or wastes are uncommon. Circular bioeconomy aims to transform the current linear agricultural system into circular, renewable bioresource-based supply chains. To achieve sustainable development goals and meet the EU’s greenhouse gas emissions reduction targets by 2030, there is a high demand to accelerate the use of renewable energy. Transforming biomass from agricultural residues and cow manure into biogas-based power (electricity and heat) and organic fertilizers is a significant step towards achieving circular bioeconomy objectives in agricultural supply chains. By utilizing anaerobic digestion, dairy farms can convert waste into valuable biogas, reducing greenhouse gas emissions and contributing to renewable energy goals. This study examines a combined heat and power biogas installation within a dairy supply chain, focusing on its logistics practices, operations management, key sustainability strategies, and economic implications. The findings suggest that although the transition to circular bioeconomy supply chains may challenge economies of scale and profit margins, the environmental benefits and long-term sustainability make it a necessary approach for the future of sustainable dairy farming in the Netherlands. Moreover, integrating circular bioeconomy practices into the dairy supply chain can enhance efficiency in both material and space usage, optimize resource utilization, and increase product output. This ensures that Dutch dairy supply chains remain environmentally sustainable over time.</p>

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Circular Dairy Supply Chains: Evidence from the Netherlands

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年6月23日

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  • Yuheng Zhu,
  • Giannis T. Tsoulfas

摘要

This paper examines the development and implementation of a circular supply chain model for biogas production at a dairy farm in the northern Netherlands. Renowned for its dairy products such as cheese, butter, and milk, the Netherlands is a major player in the global dairy industry, and the most active dairy country within the EU. In 2024, the Dutch dairy industry achieved a turnover of 6.6 billion euros. However, this sector faces significant environmental challenges. According to the National Central Bureau for Statistics in the Netherlands, agriculture is responsible for 91% of total ammonia emissions, with dairy farms responsible for approximately 48% of total agricultural emissions (around 53 kilotons annually) in 2024. This substantial amount of ammonia emissions threatens Dutch nature environment and agricultural ecosystem. The Dutch dairy industry should explore how to contribute to achieving sustainable development goals, particularly in reducing greenhouse gas emissions and enhancing food security. The traditional Dutch linear food system follows a produce-and-consume or disposal model, where all materials move in one direction; the reuse and recycling of resources, by-products, or wastes are uncommon. Circular bioeconomy aims to transform the current linear agricultural system into circular, renewable bioresource-based supply chains. To achieve sustainable development goals and meet the EU’s greenhouse gas emissions reduction targets by 2030, there is a high demand to accelerate the use of renewable energy. Transforming biomass from agricultural residues and cow manure into biogas-based power (electricity and heat) and organic fertilizers is a significant step towards achieving circular bioeconomy objectives in agricultural supply chains. By utilizing anaerobic digestion, dairy farms can convert waste into valuable biogas, reducing greenhouse gas emissions and contributing to renewable energy goals. This study examines a combined heat and power biogas installation within a dairy supply chain, focusing on its logistics practices, operations management, key sustainability strategies, and economic implications. The findings suggest that although the transition to circular bioeconomy supply chains may challenge economies of scale and profit margins, the environmental benefits and long-term sustainability make it a necessary approach for the future of sustainable dairy farming in the Netherlands. Moreover, integrating circular bioeconomy practices into the dairy supply chain can enhance efficiency in both material and space usage, optimize resource utilization, and increase product output. This ensures that Dutch dairy supply chains remain environmentally sustainable over time.