95948 - Circular Agri-Food Business Models

Learning outcomes

At the end of the course, students know a set of principles that explain, define and articulate the distinctive vision that differentiates the circular approach from the traditional economic and business model. Furthermore, students are able to approach resource management from a circular perspective aimed at maximising resource productivity, minimising environmental impact and keeping materials, components and products in circulation for as long as possible, enhancing their value.

Course contents

SPECIFIC PREREQUISITES FOR THIS COURSE

To better understand the topics covered in this course, students are advised to have acquired basic knowledge of agricultural and livestock production systems. A preliminary understanding of elementary mathematics, statistics and general economics may facilitate the learning process, although the main economic concepts required for the course will be introduced during the lectures.

SPECIFIC CONTENTS

The course aims to guide students from the fundamental concepts of economics and farm management to the analysis of agricultural and livestock production systems from a circular economy perspective.

Particular attention is devoted to the livestock sector and to the economic, managerial, environmental and policy-related factors affecting the sustainability of animal production systems.

The course is structured into two complementary parts.

Lectures

1. Introduction to the Economics of Agri-food and Livestock Systems

Economic characteristics of the agri-food system. Specific features of livestock production. Economic agents, markets and institutions operating within livestock supply chains. Relationships between farms, processors, retailers, consumers and public authorities.

The student is expected to understand the main economic characteristics of agri-food and livestock systems and to identify the actors and relationships involved in animal production supply chains.

2. Fundamentals of Microeconomics

Supply and demand. Individual and market demand. Market equilibrium. Price and income elasticity. Market adjustment mechanisms. Consumer and producer behaviour. Main market structures, including perfect competition, monopoly, oligopoly and monopolistic competition.

The student is expected to understand how markets operate, interpret changes in supply and demand and assess the potential effects of prices and market conditions on livestock enterprises.

3. Fundamentals of Macroeconomics and Agricultural Markets

Basic macroeconomic concepts relevant to the agri-food sector, including economic growth, inflation, interest rates, employment, international trade and public intervention. Relationships between macroeconomic conditions, input prices, agricultural markets and farm profitability.

The student is expected to recognise how changes in the broader economic environment may affect agricultural markets, livestock production and farm management decisions.

4. Production Economics, Costs and Farm Profitability

Production functions and input use. Fixed, variable, average and marginal costs. Total and marginal revenues. Profit maximisation. Break-even analysis. Economic efficiency and productivity. Short-term and long-term business decisions.

The student is expected to identify the main components of production costs and revenues, calculate basic profitability indicators and assess the economic implications of alternative production choices.

5. Investment and Cost-benefit Analysis

Time value of money. Discounting. Net present value, internal rate of return and payback period. Principles of cost-benefit analysis. Financial and economic evaluation of investments in livestock production systems.

The student is expected to apply basic investment appraisal techniques and compare alternative projects on the basis of their expected costs, benefits and economic sustainability.

6. Farm Accounting and Financial Analysis

Structure and interpretation of the livestock farm balance sheet. Income statement and cash-flow analysis. Assets, liabilities and equity. Financial ratios and indicators of liquidity, solvency, profitability and efficiency.

The student is expected to read and interpret the main farm accounting documents and use financial indicators to evaluate the economic and financial performance of a livestock enterprise.

7. Business Management and Business Planning

Organisational models in the livestock sector. Strategic and operational farm management. Elements of agri-food marketing. Value creation and competitive positioning. Structure and functions of a business plan. Definition of objectives, market analysis, production planning, financial planning and risk assessment.

The student is expected to understand the main organisational and managerial models used in livestock production and to contribute to the preparation of a basic business plan.

8. Public Goods, Externalities and Market Failures

Definition of public goods, common resources and externalities. Positive and negative externalities associated with livestock production. Environmental impacts, animal welfare, rural development and territorial effects. Economic rationale for public intervention.

The student is expected to identify the main market failures associated with animal production and to understand why environmental, social and ethical dimensions should be considered alongside conventional profitability indicators.

9. European Agri-food Policies

Objectives and instruments of the Common Agricultural Policy. Direct payments, rural development measures and market interventions. The European Green Deal and its implications for agriculture. Main European strategies related to food systems, climate neutrality, biodiversity and resource efficiency.

The student is expected to understand the basic structure of the Common Agricultural Policy and the role of European policies in supporting the economic and environmental transition of the livestock sector.

10. Introduction to the Circular Economy

Historical development of the circular economy concept. Differences between linear and circular economic models. Resource efficiency, waste prevention, reuse, recycling, recovery and regeneration. Circular business models and industrial symbiosis.

The student is expected to distinguish between linear and circular production models and to understand the main principles and strategies of the circular economy.

11. Circular Economy in Livestock Production Systems

Application of circular economy principles to animal production. Use of agricultural by-products and alternative feed resources. Nutrient recovery, manure management, renewable energy production and integration between crop and livestock systems. From animal metabolism to farm and territorial metabolism.

The student is expected to identify opportunities and limitations associated with the implementation of circular strategies in livestock production systems.

12. Economic Evaluation of Circular Livestock Systems

Economic, environmental and social indicators for evaluating circularity. Farm-level and territorial approaches. Evaluation of resource efficiency, externalities and trade-offs. Interpretation of models and indicators used to compare conventional and circular livestock production systems.

The student is expected to interpret basic economic and managerial models for the evaluation of circular livestock farms and to assess the economic feasibility of circular practices.

LABORATORY AND PRACTICAL SESSIONS

Practical sessions complement the theoretical lectures and may include:

• exercises on supply, demand and market equilibrium;
• calculation and interpretation of production costs and revenues;
• break-even analysis;
• investment appraisal and net present value calculations;
• analysis of livestock farm balance sheets;
• calculation of financial and economic ratios;
• preparation of selected sections of a business plan;
• evaluation of circular economy practices through farm-level case studies;
• use of Excel or other dedicated platforms for economic and financial analysis;
• discussion of real or simulated livestock business cases;
• seminars and contributions from experts operating in the agri-food and livestock sectors.

During the practical sessions, students are expected to apply the concepts introduced during the lectures, interpret the results of the analyses and communicate their findings using appropriate economic terminology.

LEARNING OUTCOMES

At the end of the course, the student:

• understands the basic principles of microeconomics and macroeconomics relevant to the agri-food and livestock sectors;
• understands the functioning of agricultural and livestock markets;
• recognises the main organisational and managerial models used in animal production;
• identifies and calculates the main components of farm costs, revenues and profits;
• performs basic break-even, investment and cost-benefit analyses;
• reads and interprets the main accounting documents of a livestock enterprise;
• calculates and interprets basic financial, profitability and efficiency indicators;
• evaluates the economic consequences of farm and business decisions;
• understands the principles underlying the preparation of a business plan;
• recognises the importance of public goods, externalities and market failures in the livestock sector;
• understands the main instruments of the Common Agricultural Policy and the European policy framework for sustainable agri-food systems;
• distinguishes between linear and circular economic models;
• understands how circular economy principles can be applied to livestock production;
• identifies economic, environmental and social trade-offs associated with circular production strategies;
• interprets basic models and indicators used to evaluate the management and circularity of livestock farms;
• communicates the results of economic and managerial analyses to public and private stakeholders;
• prepares a structured report on an economic, policy or circular economy issue related to livestock production.

COURSE ORGANISATION

The course is divided into two modules.

Module 1 – Prof. Felice Adinolfi

Theoretical lectures on the economic, managerial, policy and circular economy topics included in the course.

Module 2 – Prof. Yari Vecchio

Practical sessions, exercises and case-study analysis concerning farm economics, investment appraisal, business management and circular economy applications.

Readings/Bibliography

The teaching materials for this course are available on the Virtuale Learning Environment (https://virtuale.unibo.it/?lang=en ).

Supplementary readings

1. Challenges and Opportunities of Circular Economy in Agri-food Sector, Rahul S. Mor, Anupama Panghal, Vikas Kumar, 2021, Springer Singapore, ISBN 978-981-16-3790-2
2. The Circular Economy Handbook: Realizing the Circular Advantage,Peter Lacy, Jessica Long, Wesley Spindler, 2020, Palgrave Macmillan, EAN 9781349959679
3. Simpson JR (2019) The economics of livestock systems in developing countries: farm and project level analysis. CRC Press
4. J. Rushton, The Economics of Animal Health and Production, CAB International, Oxfordshire & Massachusetts (2009),
5. De Rosa, Marcello, Jorgelina Di Pasquale, and Felice Adinolfi. 2021. "The Root towards More Circularized Animal Production Systems: From Animal to Territorial Metabolism" Animals 11, no. 6: 1540. https://doi.org/10.3390/ani11061540

Teaching methods

The course combines theoretical lectures with practical and participatory learning activities.

During the lectures, students are regularly invited to apply the concepts introduced by the instructors to real or hypothetical cases concerning livestock farms, agri-food markets and circular production systems.

Practical sessions include guided exercises, economic calculations, spreadsheet-based analyses, case-study discussions and interpretation of business and farm-management indicators.

At least one participatory review session will be organised during the course. Under the guidance of the instructors, students will be asked to recall the topics covered, organise them according to logical criteria and identify the relationships between economic concepts, analytical tools, agricultural policies and circular economy strategies.

Lectures may be complemented by seminars and contributions from experts from the livestock, agri-food, policy and business sectors.

Attendance is not compulsory. However, participation in lectures and practical sessions is strongly recommended, particularly for the acquisition of the applied analytical skills assessed during the examination.

Students with disabilities, specific learning disorders or other special educational needs are invited to contact the instructors in advance in order to identify appropriate teaching and assessment arrangements.

Assessment methods

Registration for the exam takes place exclusively through Alma Esami, upon publication of the examination schedule.

The use of teaching aids is not permitted during examinations unless requested in advance for specific reasons.

As a rule, the examination consists of a written and an oral test.

The final exam score is awarded as follows:

- 50% score achieved in a test with closed questions which will take place at the end of the first part of the course;

- 50% oral assessment on the theoretical topics covered during the course.

The written tests will last 60 minutes

GRID FOR WRITTEN TEST

Closed questions score: + 2 correct answers for 10 questions

Open Question: +5 for 2 questions

Error or non-response does not give rise to a penalty.

GRID FOR ORAL EXAMINATION

• Preparation on a very limited number of topics dealt with in the course and ability to analyze which emerges only with the help of the teacher, expressed in generally correct language (18-19);
• Preparation on a limited number of topics covered in the course and ability to analyze autonomously only on purely executive issues, expressed in the correct language (20-24);
• Preparation on a large number of topics covered in the course, ability to make autonomous choices of critical analysis, mastery of specific terminology (25-29);
• Substantially comprehensive preparation on the topics covered, ability to make autonomous choices of critical analysis and linking, full utilization of specific terminology and ability to argue and self-reflect (30-30L).

The designated course contact for this course is Prof. Felice Adinolfi

The student has the right to refuse the positive grade proposed once (University teaching regulations ART. 16, paragraph 5)”

EVALUATION OF STUDENTS WITH SPECIAL EDUCATIONAL NEEDS

Particular attention will be given to the evaluation of students certified in accordance with Law 104/90 and Law 170/2010, or students who are recognized as having a special educational need. These students should contact the teacher by email, (cc the personnel form central offices for students with disability or with University SLD (https://site.unibo.it/studenti-con-disabilita-e-dsa/it ). The person in charge of this service in our Department is Dr. Fabiana Trombetti.

Teaching tools

• Slideshow;
• Exercises and tests on dedicated platforms and Excel;
• The course slides are accessible on the VIRTUAL system. Students are invited to contact the lecturer by email to report any problems with access, organization or the content of the published materials;
• The reception is normally held on Friday mornings. To arrange an appointment, please contact the Lecturer directly by email.

Office hours

See the website of Felice Adinolfi

See the website of Yari Vecchio