The adoption of circular economy principles is transforming the animal feed industry. Waste-to-feed innovations, sustainable sourcing, and closed-loop systems are paving the way for a resource-efficient future. With technology at the center of this transformation, feed producers can achieve sustainability goals while enhancing profitability, proving that environmental stewardship and economic success go hand in hand.
Senior Vice President
TradeBeyond
Driven by the urgent need to reconcile rising demand with finite resources, the global animal feed industry is reconsidering even some of its oldest practices. Feeding a growing population while minimizing environmental impact requires innovative approaches, and as a result the industry is increasingly embracing circular economy principles centered on reducing waste, reusing materials, and building sustainable systems. These practices can make an enormous impact, but implementing them effectively requires the right technological solutions.
In the United States, food waste accounts for approximately 30–40% of the food supply, equating to around 133 billion pounds annually, according to the U.S. Food and Drug Administration (FDA). Much of this waste ends up in landfills, where it generates harmful greenhouse gases. Thankfully, innovative waste-to-feed initiatives are changing this trajectory. Brewers’ spent grains, a byproduct of beer production, are being repurposed as a high-protein feed for livestock. Similarly, fruit and vegetable pulps from food processing plants are being repurposed to add valuable nutrients to feed. This not only diverts organic waste from landfills but also reduces reliance on traditional feedstocks like soy and corn, which often have high water and carbon footprints.
One groundbreaking solution is insect farming. Black soldier flies, cultivated on food scraps and agricultural waste, produce a nutrient-rich protein meal that rivals traditional feed components such as fishmeal. This innovation addresses multiple challenges: It reduces waste, decreases the need for wild-caught fish (protecting marine ecosystems), and slashes greenhouse gas emissions. Similarly, algae cultivation has gained traction as an alternative to fishmeal, offering a renewable and nutrient-dense option that reduces pressure on ocean ecosystems.
Meanwhile, global soy production has faced growing scrutiny for its role in deforestation. Leading feed producers are committing to using only deforestation-free soy, certified through initiatives like the Round Table on Responsible Soy. These sourcing strategies will help create compliance with the European Union’s deforestation-free legislation, which is scheduled to come into force for large companies on December 30, 2025.
The economic benefits of circular practices are compelling. Transforming waste into feedstock reduces disposal costs and creates value from materials that would otherwise go unused. By implementing closed-loop systems, feed producers can mitigate reliance on volatile commodity markets. For example, a livestock producer using byproducts instead of imported feed ingredients can cut costs significantly while reducing the risks associated with fluctuating grain prices. A report by the Ellen MacArthur Foundation emphasizes the vast economic potential of circular systems, projecting trillions of dollars in global benefits across multiple industries.
Meanwhile, consumers are becoming increasingly discerning, favoring products with transparent, ethical production processes. Feed companies that adopt circular practices can differentiate themselves in the marketplace, building loyalty while meeting tightening regulatory standards.
ENABLING CIRCULARITY WITH TECHNOLOGY
Technology is playing a critical role in advancing circularity. Multi-enterprise supply chain platforms empower the animal feed and pet food industries to seamlessly implement circular economy principles across their operations. By providing end-to-end visibility into supplier networks down to the Nth tier, a platform like TradeBeyond enables companies to identify and integrate byproducts from agriculture, food processing, and other sources into their feed formulations. With AI-powered traceability tools, businesses can map their supply chains down to the raw material level and document the full chain of custody for every order. These features allow feed producers to align with regulatory requirements like the EU’s Corporate Sustainability Due Diligence Directive while enhancing transparency and building trust with environmentally conscious consumers.
The platform’s real-time collaboration tools facilitate closed-loop supply chains by connecting feed manufacturers with suppliers, recyclers, and third-party partners. This connectivity streamlines the integration of waste-to-feed programs and ensures rapid adjustments to shifting market demands or regulatory changes. Additionally, TradeBeyond’s sustainability solutions track Scope 3 emissions, water usage, and other key performance indicators, giving businesses the data they need to optimize processes and reduce environmental impact. By leveraging these tools, companies can turn sustainability from a regulatory obligation into a competitive advantage.
The adoption of circular economy principles is transforming the animal feed industry. Waste-to-feed innovations, sustainable sourcing, and closed-loop systems are paving the way for a resource-efficient future. With technology at the center of this transformation, feed producers can achieve sustainability goals while enhancing profitability, proving that environmental stewardship and economic success go hand in hand.
About Eric Linxwiler
Eric Linxwiler is Senior Vice President of TradeBeyond. He has over 30 years of experience in enterprise software and cloud-based platform companies with a specialty in supply chain optimization and workflow management.
