The Circular Economy,

Biocycles within
Agriculture
Closed loop farming using waste streams

A report for

By Steven Grist

2018 Nuffield Scholar

October 2019

Nuffield Australia Project No 1818

Supported by:
© 2019 Nuffield Australia.
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Scholar Contact Details

Steven Grist
Cairns Microgreens and Exotics
1 Copland Road, Koah, QLD, 4881
Phone: 0438 454435
Email: stevegrist@hotmail.com

In submitting this report, the Scholar has agreed to Nuffield Australia publishing this material in its edited form.

NUFFIELD AUSTRALIA Contact Details

Nuffield Australia
Telephone: (02) 9463 9229
Email: enquiries@nuffield.com.au
Address: PO Box 1021, NORTH SYDNEY NSW 2059

ii
Executive Summary
The United Nations (UN) (2017) is forecasting a total of ten billion people on this planet by
2050, with a requirement of 55% more food. Large challenges lie ahead for food production
including water scarcity, land degradation, higher input costs and climate change. The waste
generated from agriculture and food production is difficult to quantify, but the figures are
around one trillion tonnes per annum, and contribute to 13% of total global greenhouse gas
(GHG) emissions (World Resources Institute, 2014).

This report explores the concepts, applications and solutions of the circular economy and
closed looped agriculture systems on a sub five-hectare farm basis. Separating waste,
repurposing it and recycling it are not new concepts, and more recently the waste is being
identified as a resource rather than a costly problem, and environmental polluter. This
report highlights solutions which can be integrated into current farming systems with
relatively little technical know-how and infrastructure. By turning organic waste into a
source of added value, farms can essentially move towards a triple bottom line in operations
and build in more resilience when facing an uncertain future.

Although circular economic fundamentals remain in their infancy, they are just a macro-
based system of the micro/small scale subsistence farming that has taken place for
centuries. With careful future urban planning, emerging technology and global
governmental commitment, agriculture can be remodelled to be regenerative by design and
bring on a second green revolution.

iii
Table of Contents
Executive Summary ......................................................................................................... iii
Table of Contents..............................................................................................................iv
Table of Figures ................................................................................................................ v
Foreword ..........................................................................................................................vi
Acknowledgments .......................................................................................................... viii
Abbreviations ...................................................................................................................ix
Objectives ...................................................................................................................... 10
Chapter 1: Introduction................................................................................................... 11
Chapter 2: Circular Economy, Agrocycles and Closed loops .............................................. 13
2.1 Circular Economy ............................................................................................................ 13
2.2 Agrocycles and Closed Loops.......................................................................................... 14
2.3 Reduce, Reuse and Recycle. ........................................................................................... 16
Chapter 3: Concepts and Technologies ............................................................................ 17
3.1 Coffee Waste .................................................................................................................. 17
3.2 Duckweed ....................................................................................................................... 17
3.3 Food waste compost ...................................................................................................... 18
3.4 Black Soldier Fly Larvae (BSFL) ........................................................................................ 20
Chapter 4: Case Studies................................................................................................... 21
4.1 Life Cykel Mushrooms .................................................................................................... 21
4.2 Circular Food ................................................................................................................... 21
4.3 Goerra/DipTerra ............................................................................................................. 22
4.4 Organoponicos - Cuba .................................................................................................... 23
4.5 Syntropic Farms Brazil .................................................................................................... 24
4.6 Ourobourous farms & Pure Ponics ................................................................................. 26
4.7 Parabel – Florida USA ..................................................................................................... 27
4.8 Agtech-X – Brooklyn, USA ............................................................................................... 29
Chapter 5: Opportunities for Australian Farms ................................................................ 30
5.1 Waste Streams and Current Practices ............................................................................ 30
5.2 Barriers to Implementation ............................................................................................ 30
Knowledge......................................................................................................................... 30
Cost ................................................................................................................................... 30
Will .................................................................................................................................... 31
5.3 Pieces of a Puzzle ............................................................................................................ 31
Conclusion ...................................................................................................................... 33
Recommendations .......................................................................................................... 35
References...................................................................................................................... 36
Plain English Compendium Summary .............................................................................. 39

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Table of Figures
Figure 1: World food wastage chart (FAO, 2017). ................................................................... 12
Figure 2: Economic models (University of Technology Sydney, 2018). ................................... 14
Figure 3: Comparison of Waste Generation and Population Growth in Australia, MRA
Consulting Group, October 2015 ............................................................................................. 15
Figure 4: Tomato wastage, photo supplied by University of Sunshine Coast.......................... 19
Figure 5: Black Soldier Fly Larvae, Dipterra 2018. .................................................................... 20
Figure 6: L-R Steve Grist, Fernando Funes, Otto Manue, Farm hand at Finca Marta
Organoponico Cuba. A highly productive organic closed loop farm system. .......................... 24
Figure 7: Syntropic farm with a polyculture of mixed crops in Brazil. ..................................... 26
Figure 8: The author at PurePonics Geelong. A Closed loop Aquaponic vegetable rafting
system. ..................................................................................................................................... 27
Figure 9: Duckweed cultivation in a small hydroponic system ................................................ 28
Figure 10: Dream farm 2, conceptualised by George Chan at ZERI. ........................................ 32

v
Foreword
As a former member of the Australian Army based in Canberra, I worked within the
Australian Intelligence Community. During that time I read many reports on geopolitical
situations, highlighting water and food crises, regional tensions and displacement through
climate change. This was a trigger for me to begin my path towards sustainable agriculture.
Over the next few years I studied regenerative agriculture and particularly permaculture.
Permaculture is defined as: The development of agricultural ecosystems intended to be
sustainable and self-sufficient.

Over the next few years I applied techniques learned to our backyard, volunteered at a local
community garden, and shared my knowledge with other friends and family. In 2011, my
wife Amanda and I purchased 21 acres on the Clohesy River on the Atherton Tablelands.
Within a short period of time I met a lot of neighbours, some of whom had large acreage and
were making out a living selling pumpkins, melons, and citrus to middlemen, only to see
their product to be sold at ten times that on the supermarket shelves. This system is neither
sustainable nor fair, and I desired to be part of the solution. I increased my knowledge of
regenerative farming practices, and also took a keen interest in nutrient density. As a long
term sprouter for personal health and nutrition, I found the answer was right under my
nose. As a proof of concept, I started a business – Cairns Microgreens and Exotics – and
supplied North Queensland with a range of micro herbs, and other specialty greens and
edible flowers, which are generally used as garnishes in the restaurant and café industry. The
business has grown well and now has expanded into exotic mushrooms and R&D with other
nutrient dense specialty products. I am a passionate advocate for eating local, supporting
farmers and food waste minimisation – hence the study topic Closing the Loop.

With my direct contact with chefs, I get a lot of feedback on consumer sentiment, and it is all
trending towards local food production, waste minimisation and sustainability. A number of
chefs have expressed interest for our business to take on their green waste as there are no
economical green recycling solutions currently available for them. Six months ago we took
on waste coffee grounds and it is now utilised on-farm forming 30% of our substrate for
mushroom production. We are now commencing a pilot project recycling food waste

vi
through a black soldier fly larvae (BSFL) bioreactor, with the intention of procuring a protein
feedstock and high value nutrient substrate.

The current agriculture and consumer models are both very linear, and wasteful. The ‘take,
make and dispose’ economic model currently relies on plentiful, cheap and easily accessible
materials and energy. There are multiple models out there that include biomimicry and
regenerative agriculture techniques.

I chose to study this subject because these technologies and practices need to be integrated
into farms, and I want our business to be part of a multi-faceted solution. During the
scholarship process, I contacted a number of farms and facilities working with Duckweed,
BSFL and advanced waste management with the intent of collaboration. Unfortunately there
were quite a large number of declines for visits or information. There appears to be a lot of
intellectual property rights being protected and little scope for collaboration at this stage,
which is unfortunate due to the urgent need of these systems and technology. This report
highlights these technologies and how they are and can be applied to small farm scale.

vii
Acknowledgments
First and foremost, I would to thank and acknowledge my wife Amanda for encouraging me
to take on this scholarship, and then holding the fort with our 4-month old daughter when I
first headed off to the Contemporary Scholars Conference (CSC) and subsequent four
months of travel.

Thanks must also go to my mother and father in law for helping Amanda with the farm and
our baby and general maintenance around the property in my absence; Richard Zivkov, my
leading hand on the farm, for managing the microgreens operation despite flooding and
other tribulations whilst I was overseas; and Hort Innovation for supporting the Nuffield
program and investing in my scholarship.

Big thanks to Nuffield Australia for the opportunity, program, support and mentorship, and
the Global Focus Program (GFP) 2018 India crew, a great team from different backgrounds
from whom I learned a lot.

Special mentions also go to:

• Circular Food (Melbourne, Australia)
• Ourbourous Farms (San Francisco, USA)
• Terry Green at Dipterra (Oregon, USA)
• Rick Wieggers at Wageningen University (Netherlands)
• AeroFarms (New York, USA)
• INIFAT (Cuba)
• Life Cykel mushroom (Byron Bay, Australia)
• Mycosphere (Philippines)

viii
Abbreviations
BSFL – Black Soldier Fly Larvae

CEA – Closed Environment Agriculture

CSIRO – Commonwealth Scientific Industrial Research Organisation

DWC – Deep Water Culture

EU – European Union

FAO – Food and Agriculture Organisation

FCR – Feed Conversion Ratio

FDA – Food and Drug Administration (USA)

GRAS – Generally Recognized as Safe

GFP – Global Focus Program

GHG – Green House Gas

HACCP – Hazard Analysis and Critical Control Points

IFWMS – Integrate Food and Waste Management System

NPK – Nitrogen, Phosphorous, Potassium

pH – Logarithmic scale of acidity from 0-14

R&D – Research and Development

UN – United Nations

UNEP – United Nations Environment Program

UTS – University of Technology Sydney

WUR – Wageningen University & Research

WHO – World Health Organisation

WWF – Worldwide Fund for Nature

ZERI – Zero Emission Research Institute

ix
Objectives
The objectives of this study are to:
• Seek out ways to recycle waste nutrients, and integrate and close the loop for
agricultural by-products and food waste.
• Investigate the options and feasibility in implementing nutrient cycling systems on
smaller farms, under five hectares.
• Visit and research various working models.
• Identify opportunities for Australian farms to valorise their waste streams.

10
Chapter 1: Introduction
Globally, 800 million people are still classed as undernourished, whilst in the west there is a
new problem of malnourishment from a lack of nutrient dense and available produce
(American Heart Association, 2018). A cascade effect of high food miles, prolonged shelf life,
and nutrient loss is creating this problem, and increasing the divide.

The way that food is produced can be categorised in two ways: the industrial chain and the
smallholder farmer system. The distinction allows to define concisely the problem that
exists: the industrial system produces 30% of food, but uses 70% of the resources, while at
the same time greatly degrading the environment. The smallholder farm system produces
70% of the food and only uses 30% of resources, with a much lower environmental impact.
Australia is part of the industrial farming system (FAO, 2015).

The UN Conference on Trade and Development and the UN Food and Agriculture
Organization (FAO) recently published a report concluding that only organic, smallholder
farms could feed the world in the future. Currently 72% of the world’s farms are less than
one hectare, and these provide 70% of the food that is consumed (FAO, 2015).

It is estimated that between 20-40% of farm produce is rejected or discarded prior to

reaching the supermarket (for example, Figure 1 shows estimated wastage across different
food industries). On top of this, Australian households also waste an average of 200kg per
person of food per year (equating to 4 million tonnes) (Queensland Farmers’ Federation,
2017). It is evident that there is a clear need to pivot towards a local and sustainable food
system as opposed to a centralised industrial food system. The waste generated from
industrial systems is extremely high, and is putting pressure on resources, such as soil,
nutrients and fresh water.

Cairns Microgreens and Exotics have found itself in a position to be able to capture and
reuse multiple waste streams. The intention for the business is to demonstrate smallholder
techniques for cycling these resources and closing the loop.

11
Figure 1: World food wastage chart (FAO, 2017).

12
Chapter 2: Circular Economy, Agrocycles
and Closed loops
2.1 Circular Economy
A circular economy is defined as a regenerative system in which resource, input and waste,
emission, and energy leakage are minimised by slowing, closing, and narrowing energy and
material loops; this can be achieved through long lasting design, maintenance, repair, reuse,
remanufacturing, refurbishing, recycling and upcycling (Government Europa, 2018).

Gunter Pauli, director and founder of Zero Emissions Research and Initiatives (ZERI) coined
this term “Blue Economy”, and in 2009, presented his book, The Blue Economy: 10 years –
100 innovations – 100 million jobs, to the Club of Rome, which is an organisation of
individuals who share a common concern for the future of humanity and strive to make a
difference. Members are notable scientists, economists, leaders in business, high level civil
servants and former heads of state from around the world. Their mission is to promote
understanding of the global challenges facing humanity and to advocate solutions through
scientific analysis, research and development (R&D), and communication.

The Blue Economy model has since been adopted by the United Nations Environment
Program (UNEP), World Wide Fund for Nature (WWF) and World Bank. Global businesses
and world governments are now beginning to adopt and implement circular economic
strategies. A circular economy is an overarching plan for resource and waste management
whereas the blue economy is focused on more local and regional activities and solutions
(Figure 2). The Blue Economy website contains and promotes over 100 open source
breakthrough technological innovations available to businesses and entrepreneurs alike.
Gunter Pauli already cites 200 projects implemented, US $4 billion invested and three million
jobs created. One of the most popular innovations is coffee waste being converted into
mushrooms, with over 1000 growers now up taking this open source method, of closing
loops of nutrient, reducing disposal cost, creating revenue and providing a healthy medicinal
and nutritionally dense food product (Blue Economy, 2015).

13
 Figure 2: Economic models (University of Technology Sydney, 2018).

2.2 Agrocycles and Closed Loops

“Agrocycle” is a new term, as well as the title of a large research and innovation project
addressing the recycling and valorisation of waste from the agri-food sector. Led by the
School of Biosystems and Food Engineering at University College Dublin, the consortium of
26 partners globally. The project takes a holistic approach to understanding and addressing
how to make best use of the 700 million tonnes of waste streams associated with the agri-
food industry in the EU. It will deliver the EU AgroCycle Protocol, a blueprint for achieving
sustainable agri-food waste valorisation by strongly endorsing anaerobic digestion systems,
which are currently heavily subsidized.

According to the Australian national waste management review it is estimated that between
20-40% of fruit and vegetable is being rejected prior to reaching the supermarket. 5.3 million
tonnes of food waste is created per annum at a value of $20 billion (Australian Waste
Management Review, 2018). Improvements can be made in logistics, storage and shelf life,
however a waste stream will remain a constant (Figure 3). A circular economy within
Australian agriculture needs to be implemented to capture these valuable resources.

14
 Figure 3: Comparison of Waste Generation and Population Growth in Australia, MRA
Consulting Group, October 2015

The late Professor George Chan of ZERI conceptualised the Integrated Food and Waste
Management System (IFWMS). This form of sustainable and regenerative agriculture
optimizes nutrient cycles whilst synergistically turning waste into profit. IFWMS or “Zero
waste agriculture” is optimally practiced on small farms under five hectares, and generally
requires some capital infrastructure which can be a barrier of entry for many. Many rice
farmers in Asia have been practicing this integrated farming method for centuries, using
ducks for fertilizer, pest control and egg production, whilst growing rice in a paddy. IFWMS
aren’t and don’t need to be high tech solutions – They are generally techniques that have
been used in subsistence farming for hundreds of years.

The green revolution of fertilizers, pesticides and machinery has favoured production and
profit over custodianship and holistic land management. Reinventing these Agro cyclical and
IFWMS techniques with modern technology could herald in a second green revolution and
help solve many problems that agriculture faces today. Integrated Farming is now
recognised as a new European organic agricultural standard which raises the bar over
organic for beyond sustainable and regenerative farming practices.

15
Circular economy, blue economy, agrocycles, IFWMS and biocycles are essentially all the
same thing, and can become quite confusing. Moving forward it is important that some of
these labels and terms align to avoid being misunderstood, and falling into the same trap as
the word ‘sustainability’ and the ‘greenwashing’ it is being brandished as.

2.3 Reduce, Reuse and Recycle.

Reduce, reuse and recycle are the three R’s of waste management. Australia is a very
coastally dispersed country with 85% of the population living within 50kms of the coastline.
With a centralised food logistics system this poses extra challenges for waste management.
In Australia, an estimated 12 million tonnes of agricultural waste is left to rot, generating
millions of tonnes of methane gas, contributing to climate change (Australian Bureau of
Statistics, 2004). In 2016, the Australian Government committed to develop a National Food
Waste Strategy. This strategy establishes a framework to support actions that work towards
halving Australia’s food waste by 2030. This ambitious goal aligns with the United Nations
Sustainable Development Goal 12 for sustainable consumption and production patterns
(United Nations, 2018). New techniques, technologies and innovation will continue to
provide solutions as this farm based movement continues to expand.

16
Chapter 3: Concepts and Technologies
3.1 Coffee Waste
In 2009, the world consumed 126 million bags of coffee, or 7.5 million tonnes of beans ready
to be roasted. Few people realise that harvesting, processing, roasting and brewing coffee
discards an estimated 99.7% of the biomass. While only 0.2% acquires value on the market,
the remainder is wasted (International Coffee Organisation, 2009). This makes coffee one of
the most wasteful consumer products.

100% of coffee waste material can be diverted into mushroom cultivation, as opposed to
being bagged in plastic and dumped in landfill, and due to a global growing demand in
culinary and medicinal mushrooms, this market is set to hit US $50 billion in 2019
(Fastcompany, 2018). This case was the third open sourced innovation put forward by
Gunter Pauli in 2009 and now has over 1,000 adoptions of the technology.

Coffee waste is also being made available to home gardeners via a number of retails outlets
like petrol stations in New Zealand where customers can take it from collection bins for free.
The coffee grounds have a range of micronutrients, promote beneficial bacteria and are a
slightly acidic by product which could also help Australian gardeners with alkaline soils.

3.2 Duckweed
*The author attempted contact with, and to visit, the three leading companies working with
Duckweed, unfortunately all three cited Intellectual Property concerns and declined visits or
an interview.

70% of the earth consists of water, and today only 17% of food comes from fisheries and
aquaculture. The FAO (1999) has identified Duckweed (Lemnoideae) as having enormous
potential for future protein sources. Duckweed is an aquatic plant found worldwide and
often seen growing in thick, blanket-like mats on still or slow moving, nutrient-rich fresh or
brackish waters, often mistaken for algae. The plant can provide nitrate removal, if cropped,
and the duckweed is important in the process of bioremediation because it grows rapidly,
balancing pH, and absorbing excess loose mineral nutrients, particularly nitrogen and
phosphates. It grows to a maximum size of 10mm, and in water temperatures between six
17
and 33°C, which, in optimal conditions can double their biomass in less than 24 hours
(Wieggers, pers comm; 2018). Harvesting can be as simple of scooping the weed with a net,
or otherwise using large scale floating mechanized harvesters, built by companies like
Aquamarine based in Canada.

With a crude protein average of 40% and lipid content of 5% (FAO, 1999), this plant has a
bright future in the animal feed stock space. No further preparation is required; it can be
supplied fresh to cattle, poultry and other stock. Plant based proteins are proven to be a
more bioavailable, and soluble form of protein for human nutrition also, which could greatly
improve malnourishment problems in subtropical/tropical regions.

This relatively unassuming plant is commonly found in waste water lagoons where it thrives
on high levels of waste nutrient. Commercialising it as a protein source and feedstock has
brought a lot of interest of late with a number of companies and institutes like Parabel and
NASA now bringing it into the spotlight (Vegconomist, 2019).

3.3 Food waste compost

Currently, a great majority of agricultural and food waste is left to rot causing it to convert to
methane gas (Figure 4). Methane is 26 times more potent than carbon dioxide as a
Greenhouse Gas (GHG) and is a significant contributor to global greenhouse gas emissions
(Climate Council, 2016).

Composting is a well-known aerobic process of breaking down vegetative matter which

reduces or prevents the release of methane during organic matter breakdown. The benefits
of compost include enriching soil, adding soil carbon, and creating and environment for
beneficial microbes, bacteria and fungi (FAO, 2019).

There are a number of different methods in composting, generally a static pile or actively
aerated windrow, each method is subject to space, climate and available machinery.
Compost quality can vary widely, with some farms believing they may be composting but are
instead creating an anaerobic environment. Commercial compost facilities are coming online
as they co-locate with municipal waste facilities, and the benefits of the compost products
are being realised.
18
At a home consumer level, organic household waste management via composting has had
mixed and low rates of success (Waste Management Review, 2017). Lack of real data exists,
however it would most likely be a safe guess that a large proportion of home compost
systems would become anaerobic with little benefit. Organic food waste generally makes up
a small input into these commercial compost facilities.

Vermicomposting systems (using worms) are effective on a household scale as the worms
assist with aeration of the material. Vermicomposting is becoming more popular as farmers
move towards low till and regenerative practices. This is making worm farming viable as a
larger commercial enterprise with worms, worm juice and castings being the two main
saleable by-products.

Figure 4: Tomato wastage, photo supplied by University of Sunshine Coast

19
3.4 Black Soldier Fly Larvae (BSFL)
Black Soldier Fly Larvae (Hermetia Illucens) (Figure 5), which are very different to the
common house fly are indigenous to South America, but now found globally, are considered
neither pests nor vectors of pathogens to humans. Insect proteins are becoming very
popular in the animal feed and human nutrition space, and a number of companies and
start-ups are scaling up production. An example of this is the BSFL, which are an excellent
source of sustainable protein for aquaculture, animal feed, and pet and human nutrition.
The larvae have voracious appetites and can be used for composting household food scraps
and agricultural waste products. They are among the most efficient animals at converting
feed into biomass, and can be raised easily in a simple bioreactor/propagation tank. In 432
hours, one gram of BSFL from eggs can convert organic waste into 2.4 kg of edible protein,
with up to 42% protein, 29% fat, calcium and amino acids (Atlas of Living Australia, 2016).
Another valuable resource is BSFL frass, an odourless residue which is valuable as an organic
fertilizer (Birrell, pers comm. 2018).

Nutrient cycling systems such as BSFL and Duckweed can complement each other to close
the loop on waste and provide beneficial by-products. It is interesting to note that duckweed
and coffee grounds can be added to a healthy worm farm, and one would generally find a
good population of BSFL co-existing in the same space. Worms add excellent humates and
beneficial microbes, and the BSFL can rapidly break down some of the larger waste that
worms take longer to digest.

Figure 5: Black Soldier Fly Larvae, Dipterra 2018.

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Chapter 4: Case Studies
4.1 Life Cykel Mushrooms
Life Cykel, now based in Byron bay, was conceptualized and launched in 2015 by Ryan Creed
and Julian Mitchell. Although growing mushrooms is not a new concept, the business is well
timed and placed to take advantage of the global growth in mushroom demand. The
company has a strong focus and ethos on working towards closing the loop, using waste
coffee grounds to grow mushrooms, whilst providing the nutritional benefits of consuming a
locally produced product.

Life Cykel has recently launched a National Mushroom Network recruiting over 30 growers
who are all using waste coffee grounds as part of the base substrate for growing
mushrooms. This initiative of “locavore” (consuming locally) eating and closed loop farming
has grabbed the attention of business mentor Mark Bouris and Celebrity chef Pete Evans,
and has propelled the company growth even further. An increase in vegetarian/vegan
trends, coupled with new research on the large range of potent medicinal properties has
also driven business sales into positive territory (Creed, pers. comm., 2018).

Current mushroom consumption for Australia stands at a low 2.8kg per person per annum,
in stark contrast to China at 10kg per person per annum. The Australian Mushroom Growers
Association is pushing a campaign to raise that to 4kg per annum by 2020, creating
opportunity for growth (Hort Innovation, 2017).

With logistical tweaking, these smaller mushroom growers in Australia and globally can
essentially divert and eliminate all coffee waste by incorporating waste pickup and transfer
when they deliver their product. Further to this, mushrooms also grow on second grade or
waste sorghum and other grains, absorbing yet another waste stream.

4.2 Circular Food

Nitrogen and Phosphate costs are rising and with four million tonnes of fertilizer being used
in Australia each year and five million tonnes of food waste being created (Australian Bureau

21
of Statistics, 2012b). Diverting waste streams, recycling and converting it to a fertilizer would
economically benefit all parties involved in the process.

Circular Food (formerly Vermicrobe) is located in Somerton, Melbourne. The founder, Steve
Morriss, was initially operating a vermiculture (worm farm) operation inputting food waste
and selling live worms, worm castings and worm liquor as an organic fertilizer. The original
intention was to scale and replicate this business model into an urban setting; however
Steve has since realised that this is not a viable economic model (Morriss, pers. comm.,
2017).

Circular Food has since partnered with local government, the Commonwealth Scientific
Industrial Research Organisation (CSIRO), and industry to produce a truly closed loop
certified organic fertilizer. The process simplistically involves food waste being dehydrated,
processed through worm farms to enrich it with microbial life and then mixed with bio-
digestate and biochar, to create BIG BIO fertilizer. Bio-digestate is the reclaimed nutrient
from anaerobic commercial waste water management facilities and Biochar is a carbon rich
soil amendment created from the pyrolysis (high temperature burning) of agricultural waste
in an oxygen free environment. The product is free of contaminants unlike many standard
types of compost, and is rich in Nitrogen, Phosphorous and Potassium (NPK) with the
synergistic microbial amendments already bound.

Circular Food is now operating a pilot plant on a light industrial site strategically located
close to a number of food processing and manufacturing operations to be able to capture
their waste streams. The company is currently capital raising, and starting to licence out the
technology with the intention of launching a number of BIG BIO fertilizer production sites
strategically located across Australia. Circular food may prove to be the shining example of a
circular economy business model supporting agriculture.

4.3 Goerra/DipTerra
GoTerra, is a newly formed waste management company based in Canberra. Working in the
insect protein space, their mission is to provide regionally based waste management
solutions to communities. They plan to do this by rolling out modular bioreactors capable of
turning agricultural and food waste into BSFL, which in turn will be sold to the poultry and
22
aquaculture industry. GoTerra is also developing a Hazard Analysis and Critical Control Points
(HACCP) program to be able to supply BSFL as a food and protein powder for human
consumption.

4.4 Organoponicos - Cuba

In 1959, Cuban national revolutionaries began fighting for an autonomous country, free from
U.S. control. Fidel Castro and his cohort nationalised all assets, banking, manufacturing,
agriculture and exports. The U.S., placing embargos on Cuba, isolated them, forcing the
Cubans to rely on, then, Soviet Bloc support. The Cuban agricultural sector was advancing
slowly, and with the disintegration of the Bloc in 1991, saw a severe reduction in food
imports by over 60%. Between 1991-1995 food rationing was implemented to ensure
equitable distribution and Fidel Castro proclaimed that “no piece of land shall be left
uncultivated”, initiating the (autoconsumo) self-supply plan (Association for the Study of the
Cuban Economy, 1999). The ministry of Agriculture set about to decentralize production and
link new production to transport links and consumption patterns within the urban footprint.
Urban agriculture in Cuba, and particularly Havana, is a high input high output system that
requires careful water management and Integrated Pest Management (IPM) due to the
prohibition of pesticides. In 1994 the Cuban government relinquished control of the state
controlled farms, giving the workers management and ownership rights of the farm lots. The
established Urban Agriculture Department would then make unused lands available to
whoever wanted to cultivate them, on the proviso it was under production within 6 months.

Organoponicos are a feature of the Cuban capital Havana, generally a raised bed system on
poor soils; they are used for intensive vegetable production and supply up to 30% of a local
neighbourhood food supply (Figure 6) (Otto, pers. comm., 2018). These systems utilise of a
mix of composted organic waste, vermicast (worm castings), liquid biofertilizers and local
animal waste inputs. Using these inputs is second nature to the organoponico farmers, and
they have a number of inventive ways of doing this. Due to the abundance of cheap labour
and waste material, manures are manually moved and rotated through composting and
worms farm systems. With chemical and fertilizer imports strictly controlled, and
prohibitively costly, the current systems of production looks set to stay in place for the near
future.

23
An organoponico or farmers market stall can easily be found in every neighbourhood or
suburb, providing cheap, organic and seasonal produce. Cubans neither have the luxury of,
nor the access to non-regional produce, which may seem limited at first, but an argument
can be made that they have one of the lowest carbon footprints in the developed world. This
Cuban socialist model with farms imbedded in their cities, may not be seem progressive but
is possibly the worlds’ most resilient food system, offering security, convenience, a reduced
cost of nutrition and an overall a fresher and healthier product direct to the consumer.
Regional farm, ownership, local employment and keeping money in the community are
obviously clear benefits to the country. (Manuel, pers comm; 2018)

Figure 6: L-R Steve Grist, Fernando Funes, Otto Manue, Farm hand at Finca Marta
Organoponico Cuba. A highly productive organic closed loop farm system.

4.5 Syntropic Farms Brazil

Syntropic farming is a relatively newly coined term coming out of Brazil. Traditionally,
organic agriculture is based on using organic waste and composts for nutrients as opposed to
conventional agriculture using base chemicals for fertilizer inputs. Conventional agriculture
systems are generally entropic systems, changing the environment from complex to simple.
Syntropic is the reverse, moving from simple to complex through agriculture design, it
arranges and includes a polyculture of species, managing them to produce their own
fertilizer, thus creating its own ecosystem.

24
Permaculture, a similar and more commonly heard Australian term, is defined as a
Permanent Agri-Culture and is another holistic design system methodology. Permaculture as
popular as it is, has become more of an idealistic alternate gardener collective with very few
profitable commercial permaculture operations in existence. The two modalities have been
compared as equal, but where permaculture fails in commercial application and execution,
Syntropic farming can and does succeed.

In 1984, Ernst Gotsch, a Brazilian farmer, bought Fazenda de toca, 1,200 acres of deforested
dry land on the edge of the rainforest. Ernst then replanted the land according to a system of
natural succession, using a chop and drop, self-mulching and green manuring system, and
now, years later has now reforested the entire farm creating its own microclimate. The land
is multi-cropped and highly productive in tropical fruits, timber, tubers and some of the most
highly awarded and priced coffee and cacao in Brazil.

Syntropic Farms are regenerative, beyond organic, and the best model of agroforestry to
date. Essentially biomimicry, multiple species are alley cropped which helps reduce pest and
disease pressure, whilst symbiotically supporting each other as part of a whole system. A
careful balance of pioneer species, followed by the forestry component of this method, can
allow for an endogenous self-fertilizing system within three years. Planting occurs in alleys or
rows like conventional farming, and allows access for machinery to harvest. This may not be
apparent from overhead observation due to the range of species in the system (Figure 7).
Syntropic systems can be applied to sub-tropical and temperate environments, with the
most productive being a tropical system. There are now a number of smaller pilot syntropic
systems in Australia with some larger farms observing the results closely. Syntropic Farms
Co. is now training and running workshops in Australia, and has begun to engage many
farmers in the Northern NSW and North QLD region. (Barbosa, pers. comm., 2018)

25
 Figure 7: Syntropic farm with a polyculture of mixed crops in Brazil.

4.6 Ourobourous farms & Pure Ponics

Aquaponics is the combination of Hydroponics and Aquaculture; it is a relatively new,
complicated and expanding technology. With a fairly high failure rate, many operations have
started and closed within a few years.

Ourobourous farms and education centre is an Aquaponics farm based in Half Moon Bay,
San Francisco, and they are arguably one of the most successful in the industry, with many
people seeking them out for consulting and training. Ourobourous farms currently grow out
Tilapia and Perch in their aquaponics tanks. The nitrite waste from the fish is then circulated
into their grow beds which comprises of a rafting system whereby vegetables are suspended
in the water. Aquaponic systems have high infrastructure and setup costs, which once
established can deliver fast vegetable growth times and water savings within this closed
environment. Aquaponic systems generally have a more complex biological suite of
micronutrients in comparison to standard hydroponics. Ourobourous farms also cycle the
water through Deep Water Culture (DWC) beds rich with worms, therefore providing
humates and fulvates.

In aquaculture operations one of the most highly criticized elements is the Feed Conversion
ratio (FCR). This can swing wildly as high as 20:1 feed to fish ratio with farmed tuna, equating
to 20kg of fish meal or shrimp to create 1kg of tuna (Armstrong, pers. comm., 2018).
Ourobourous Farms are taking a further step toward creating a closed loop in creating their
26
own fish feed. The farm is using waste vegetable matter and putting this into a small BSFL
bioreactor to grow the larvae to then feed their fish. Other waste water run-off from general
production and cleaning is then being captured and cycled through a pre-filter, and is being
used to grow duckweed. The duckweed and BSFL with 40% protein, offers a complete suite
of nutrients that is able to sustain fish population, fertilize the vegetable production and
essentially represent a closed loop fish/food farming system.

PurePonics is another aquaponics enterprise based in Melbourne who have partnered with
Deakin University. Although not quite as advanced in production as Ourobouros farms, there
is a lot of focus on data collection and analysis. PurePonics also seeks to licence and expand
their Aquaponic rafting systems regionally providing locally sourced fish and fresh vegetables
(Figure 8).

Figure 8: The author at PurePonics Geelong. A Closed loop Aquaponic vegetable rafting
system.

4.7 Parabel – Florida USA

Parabel is a Florida based food start-up taking advantage of the sustainable plant based
“meat” movement. The company manages 700 acres of shallow open raceway ponds and as
of 2018 currently cultivates over 4,000 tonnes of duckweed (Figure 9) for human and animal
consumption. Duckweed has been utilized in Asian rice fields as a green manure for
centuries, and some Dutch farmers grow it seasonally to sequester nutrient and then feed to
dairy cows. Parabels’ developments are a quantum leap past this, breeding the duckweed to
27
be a more palatable and soluble form of protein for humans and animals. As stated on their
website:

The crop requires relatively modest water, energy and fertilizer inputs - and our closed
growth system keeps losses to an absolute minimum. It is the only cropping system in which
100% of the plant is harvested and 100% of that harvest is employed in the production of
high value products. Not a drop of water is wasted, not an ounce of product is thrown away.
Everything is either used or completely recycled back through the system (Parabel, 2018).

Parabel can replicate this production model on barren lands or lands that are low in
agricultural productivity, and is now offering the best known solution to a plant based
protein source, second only to spirulina. Parabels’ disruptive technology is not new, with
company CEO, Anthony Tiarks, stating that the knowledge has been in literature for years,
but nobody has learned to develop or farm it well. The US Food & Drug Administration (FDA)
has just granted the company a Generally Recognized as Safe (GRAS) letter allowing them to
market the powdered protein for human consumption.

There are a handful of other companies working with duckweed, but most are holding their
cards close with regards to global intellectual property.

Figure 9: Duckweed cultivation in a small hydroponic system

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4.8 Agtech-X – Brooklyn, USA
Henry Gordon-Smith operates his consulting firm “Agritecture” from this office and has
consulted for some large vertical farming and modular farming enterprises such as “Square
Roots” in New York City. Agtech-X based in Brooklyn New York is the brainchild of Henry
Gordon-Smith. It is setup as a collaborative workspace attracting some of the smartest minds
in tech, and entrepreneurial capital, this is then applied to developing future solutions for
food and Agriculture. Agtech-X has now become a hub of innovation offering classes and
workshops in a range of modern and cutting edge agricultural techniques. There is a current
focus on integrating circular economics into this space, such as food waste streams, BSFL,
mushrooms and duckweed. Agtech-X is currently collaborating with “Re-Nuble”, another
company based in New York, which is turning food waste into a liquid hydroponic fertilizer.
The Agtech-X think tank also has some forward thinkers working on modular and scalable
waste nutrient recycling prototypes which could be deployed on farm, or near certain waste
streams (Gordon-Smith, pers. comm., 2018). This future agriculture incubator is trailblazing
and one to watch.

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Chapter 5: Opportunities for Australian
Farms
5.1 Waste Streams and Current Practices
In 2015, Apple recovered 2,204 pounds of gold, at a value of USD $40 million, from recycled
iPhones (Cable News Network, 2016). In the same way these tech giants are looking at rare
earth minerals as a recyclable product, agricultural innovators are coming up with solutions
to recycling and reclaiming agricultural minerals, and absorbing loose nutrients. A number of
agro cyclical practices are currently being practiced on Australian farms, such as composting,
green manuring, companion cropping, and diversion to biogas production. In Europe there is
a large subsidisation for Anaerobic Digestion (AD), which is not without its critics. Two main
arguments are debated, one that AD would not be economically feasible if not subsidised
and two, AD en masse provides another fuel to burn but inevitably leads to a net entropic
loss of material. Horticultural waste burning always delivers more CO2 into the atmosphere
whereas correct composting builds stable soil carbon and provides much needed microbial
life.

Many farmers continue to burn organic agricultural waste, stockpile it, or turn it into the
ground, which can exacerbate and spread pest and diseases. Careful hot composting or
waste cycling through worm/BSFL systems can reduce and eliminate these pressures.

5.2 Barriers to Implementation

Knowledge
The number one barrier to implementation of some form of composting or nutrient cycling
system is knowledge. With composting systems, the techniques can be very simple however
the inputs can influence the end product. Chemical and pesticide residue can also determine
the end use for that product, possibly making it unsuitable for off-farm sale and application.

Cost
The most common on-farm nutrient cycling is in the form of composting. Generally, only
larger farms have the equipment and machinery to be able to turn and manage this
compost. There can be significant capital outlay with composting machinery, so an obvious
economy of scale comes into play. Other infrastructure such as bioreactors, Worm

30
composting systems, and sediment/water catchment may generally be newer technologies
and be more costly in the initial installation, but are showing some impressive results. As
input costs increase and technology improves, the economies of scale will improve and will
make these practices widespread.

Will
With the average age of an Australian farmer at 56, (Australian Bureau of Statistics, 2012b),
innovation can sometimes be a hard sell. The continual rise of fertilizer and transport costs,
coupled with climate change and top soil loss is leaving Australian farmers with no choice
but to adapt. Scores of new data, workshops and field data are being offered to farmers to
show the added benefits of composting, sequestering carbon and building top soil. It is now
down to the will of many farmers who can see what change is required for agriculture to
advance in the 21st century.

5.3 Pieces of a Puzzle

In 2018, the Australian Government announce a $500 million reef rescue package, aimed at
reducing agricultural run-off and coral bleaching causing damage to the Great Barrier Reef
(Great Barrier Reef Marine Park Authority, 2018). North Queensland farmers now have
access to advice, resources and funding to mitigate this problem.

Tropical environments are the perfect climate for duckweed cultivation and with a network
of retention basins in heavy sugar cropping areas. Duckweed by itself composted is a good
source of nitrogen and can also be used as a fodder to cattle. BSFL will also rapidly turn
duckweed into frass and a protein source.

With land based Aquaculture growing in Australia, and protein feedstock being the most
expensive and controversial input, mutually synergistic solutions are now available. BSFL,
duckweed and composting easily interface with each other, and any concerns into toxicity
levels can further be addressed through mycoremediation, which is the fungal remediation
of long chain hydrocarbons, metals or toxins, by enzymes which can degrade and transform
these substances (McCoy, 2016).

In any complex ecosystem all components are intertwined and interact with each other.
Moving from a linear resource mining economy to a circular nutrient cycling economy

31
requires many pieces to complete the puzzle. Duckweed, soldier fly larvae, mushrooms and
compost do not initially come to mind as future solutions to save the world, but they are
essential to the way the world will handle agricultural and food waste in the future. Solutions
presented in this paper will be just as critical as robotics, precision agriculture and cloud
based applications as we move towards the 21st century.

The schematic below is an example of an IFWMS, which may present as being very complex,
but can be explained as follows: As waste transitions from a costly output, to a cost saving
recycled input, these systems will be eventually be integrated into modern farming. Micro
regional waste collection, resource and infrastructure sharing would be the most efficient
and cost effective step forward to this new way of operating.

Figure 10: Dream farm 2, conceptualised by George Chan at ZERI.

32
Conclusion
In Australia, 50% of municipal waste is collected and recycled to some degree. In Germany,
Denmark and Sweden this rate is between 87-100% (World Bank, 2018). In 2017, China
implemented it’s ‘National Sword’ policy, greatly reducing the amount of imported recycled
waste and lowering the contamination thresholds (Towie, 2018).

With the previous attitude of it being someone else’s problem, Australia has had its hand
forced and now has to deal with more of its own rubbish. Thanks to companies like Veolia
and Cleanaway, waste management education, recycling compliance has increased
(Department of Environment and Energy, 2018),

European leaders that have set near zero waste targets are adopting circular economic
strategies and investing in new technologies to meet these goals (European Environmental
Bureau, 2018), but Australia is lagging far behind in this arena. Australia is a geographically
dispersed country, which poses challenges when it comes to food miles and recycling,
however the coordination and infrastructure for recycling agricultural waste is less complex
than other materials. Regional bio-waste facilities on or off farm could be established like
that of Circular Food, taking in waste and converting it to an organic fertilizer. The old
paradigm of burning or letting vegetative matter rot is out, dated.

Farmers can transition their farms to an IFWMS, with training and some technical assistance.
Fledgling industries, like duckweed and mushroom producers, and compost creators may
currently guard their Intellectual Property (IP), but through open sourcing and the Blue
Economy, this technology is being made available for the betterment of our food supply and
future of the planet.

Adopting circular economic principles and practices is not only cost saving, but regenerative,
and will become an absolute necessity as the population increases and resources become
scarcer. Consumers are already demanding:
• Reduced food miles
• Sustainably sourced foods
• Plant based protein

33
 • Nutrient dense produce
• Environmentally friendly products
Some governments are beginning to mandate these points, and early adopters and those
willing to make the transition into a circular economy now, will have the first mover
advantage in their industry.

34
Recommendations
• A national waste policy review, with a focussed national recycling program for
agricultural and food waste. Education to be increased at all levels - from school to
farm and industry groups.
• Government recognition at all levels; adoption and promotion of circular economic
system practices, with renewed and accelerated goals to meet Scandinavian
countries.
• Farmers to adopt waste stream/system integration to on farm nutrient cycling
centres. Government to put policies into place to allow subsidised and low interest
loans to establish nutrient cycling waste management infrastructure.
• Farmers to focus on whole system design, extension to the current “Smart Farms”
program, and provide free agronomical consulting to transition farms into circular
systems.
• Government, Council and Natural Resource Management support, funding and low
interest loans to build infrastructure to support closed loop practices.
• Agriculture Tech entrepreneurs to improve platforms that allow farmers to share
equipment and resources e.g. compost turners, waste materials.
• Government backed agriculture technology incubator funding and support, so
Australia is not left behind.
• Farmers and industry to incorporate more regenerative practices, biomimicry of
natural systems, and symbiotic nutrient cycling systems and increased R&D into plant
based fertilizer.

35
References
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Armstrong, K. (2018). Ouroboros Farm, Personal communication, San Francisco. U.S.A.

Association for the Study of the Cuban Economy (1999). Independent agricultural
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Atlas of Living Australia (2016). Hermetia Illucens.

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Australian Bureau of Statistics (2012a). Land management and farming in Australia.

Australian Bureau of Statistics (2012b). Australian farms and farmers.

Australian Waste Management Review (2018). National food waste strategy. Retrieved from
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Barbosa, T. (2018). Personal communication. Syntropic Farms, Training Course. Tolga,

Australia

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https://money.cnn.com/2016/04/15/technology/apple-gold-recycling/index.html

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Australia.

Department of Environment & Energy (2018). National Food Waste Strategy. Retrieved from
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European Environmental Bureau (2018). https://eeb.org/tag/waste-recycling/

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FAO (1999). Duckweed a tiny aquatic plant with enormous potential for agriculture and
environment.

FAO (2015). The economic lives of smallholder farms. Retrieved from

http://www.fao.org/family-farming/detail/en/c/385065/

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food/resources/keyfindings/en/

FAO (2019). Agriculture and soil biodiversity.

FastCompany (2018). Retrieved from https://www.fastcompany.com/40511575/the-

shroom-boom-will-trendy-medicinal-mushrooms-go-mainstream-in-2018

Gordon-Smith, H. (2018). Personal Communication. Agritecture/Agtech-X, Brooklyn, U.S.A.

Government Europa (2018) https://www.governmenteuropa.eu/circular-economy-concept-

explained/90557/

Great Barrier Reef Marine Park Authority (2018). 500 million funding ‘game changer for great
barrier reef.

Hort Innovation (2017). Strategic investment plan. Retrieved from

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http://www.ico.org/documents/wsiteenglish/edletter-09-e.htm

Manuel, O. (2018). Personal Communication. INIFAT Instituto de Investigaciones

Fundamentales en Agricultura Tropical, Havana, Cuba

McCoy, P. (2016). Radical Mycology. Chthaeus Press

Morriss, S. (2017). Personal Communication. Circular Food, Melbourne, Australia.

Parabel (2019). Sustainability. Retrieved from http://www.parabel.com/sustainability/

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say-waste-research-finds-produce-problem

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https://www.un.org/sustainabledevelopment/sustainable-development-goals/

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Plain English Compendium Summary

Project Title: Name of project: Closing the loop, Circular

economics within Agriculture

Nuffield Australia Project No.: 1818

Scholar: Steven Grist
Organisation: Cairns Microgreens & Exotics
1 Copland Road,
Koah, QLD, 4881
Phone: 0438 454 435
Email: stevegrist@hotmail.com
Objectives
1. Investigate the technologies, options and limitations in
implementing waste and nutrient cycling systems on farm.
2. Visit and research various working models.
3. Identify Opportunities for Australian farms.

Background 5.3 million tonnes of food waste is created in Australia each year. A small
portion is composted or recycled into secondary uses, a large portion is lost
in landfill becomes aerobic and contributes to Greenhouse Gas emissions in
the atmosphere. Farmers and consumers can divert most of this waste into
beneficial secondary uses such as composts and protein creation.

Research Several operations in Australia, USA, NZ and Cuba were visited and
investigated. These included composting, waste management,
mycoremediation, bio intensive and agroforestry projects.

Outcomes A number of new and innovative waste resource recovery options exist:
1. Farmers need to identify waste streams and learn ways in which to
reintegrate them into current operations.
2. Consumers can play a more conscious and active role in waste
management.
3. Government and industry need to support and incentivise these
new technologies and techniques.

Implications Adoption of Circular Economic or Agro cyclical practices which will valorise
waste for smallhold farms.

Incorporation of regenerative and whole system design on farm, coupled

with smart waste management can reduce nutrient loss on farm, reduce
Greenhouse Gases, and add other possible income streams to the farm.

Publications Nuffield Australia National Conference, Brisbane, QLD. September 2019

39