Optimizing a Closed-Loop Agricultural Supply Chain: A Case Study from Jordan

The circular economy (CE) within the agricultural supply chains (SC) assumes efficient and sustainable closed-loop SCs. This means collecting, reusing, or recycling the loss and waste to create energy, fertilizer, and other applications. This chapter aims to analyze a closed-loop citrus SC by constructing a multi-objective system dynamics model, which will maximize the profits of the stakeholders while minimizing citrus losses and minimizing the released CO2 emissions of 1 kg of citrus from the farm and 1 L of juice from processing. Thereby, the model was tested and validated according to the data collected from the case study. The results from the simulation model revealed that returning citrus loss and waste (CLW) as fertilizer to close the loop in the farm stage would lead to an increase in farmers’ profit and a reduction in the CO2 emission of 1 kg of citrus from the farm and 1 L of juice from processing 29% and 26%, respectively. Furthermore, upcycling CLW at the processing stage by using it to extract essential oil increases processor profit by 21%. A closed-loop citrus SC would eliminate CLW, enhance the profitability of stakeholders, and cut CO2 emissions. However, collaboration between stakeholders is crucial to adopting a CE within citrus SC, especially if they would generate value from CLW. Future research would consider citrus SC from other countries to examine its applicability to other by-products.