Circular Models in the Grain Value Chain: Transition Opportunities

Contributor: Jane Achieng, Head of ESG Advisory and Technology, TTNM

Introduction

We recently concluded an insightful webinar session in partnership with the Eastern Africa Grain Council (EAGC) unpacking the theme of Redefining the Grain Value Chain in East Africa: Circular Approaches to Waste Management and Logistics Trends. Global food insecurity is rising again, with 343 million people across 74 countries facing acute hunger in 2024, according to the World Bank. The lingering impacts of COVID-19, conflict, and economic shocks drive this trend. Post-harvest losses in the grain sector are caused by a range of factors, including delayed harvesting, poor drying, inadequate threshing, substandard storage, and weak transport systems, which lead to spoilage, pest infestation, and reduced grain quality. Addressing this waste is essential not only to improve food availability and farmer incomes but also to reduce environmental impact, cut economic losses, and unlock opportunities to repurpose waste into valuable products.

Grain Post-Harvest Losses (PHL) in Sub-Saharan Africa (SSA)

When we talk about the circular economy, the consensus is conflicted as to what we mean in practice across agri-food systems in Africa, because the assumption is that African agriculture is already sustainable. To debunk this assumption, we define a linear economy as an economic system where resources are extracted, made into products, used, and then discarded as waste. This model focuses on maximizing production and consumption, often at the expense of resource depletion and environmental damage. Circular economy, on the other hand, is a systemic approach to economic development that aims to minimize waste and maximize the use of resources by keeping materials and products in circulation for as long as possible through methods like reuse, repair, refurbishment, and recycling. 

The World Bank and UNFAO published a report titled The Case of Postharvest Grain Losses in Sub-Saharan Africa. The report highlights that post-harvest losses (PHLs) in Africa’s grain value chain remain one of the most pressing yet under-addressed inefficiencies in agricultural systems. These losses, whether physical, nutritional, monetary, or economic, undermine farmer incomes, food security, and sustainable development goals. In Sub-Saharan Africa, where the grain sector underpins rural livelihoods and regional trade, the scale of these losses is not only staggering but also preventable. Data from the African Postharvest Losses Information System (APHLIS) provides critical insight into the magnitude of the challenge, highlighting just how much value is slipping through the cracks of our food systems.

Circular Economy Opportunities in the Grain Value Chain

While often underestimated, PHLs represent a massive economic loss and a critical opportunity for circular models to reclaim value and improve food security.  Unlocking circular opportunities in the grain sector begins with reimagining waste as a resource and leveraging appropriate technologies. By transforming by-products like husks, chaffs, and bran into bioenergy, livestock feed, and eco-friendly packaging, farmers and startups are turning waste into wealth. Tools like feed pelletizers and biomass pelletizers enable the conversion of grain residues into valuable products such as animal feed and alternative fuel sources, while balers help compress agricultural waste like straw for easier storage, transport, or reuse.

Alongside this, smart post-harvest management is taking root, with store sensors now allowing real-time monitoring of conditions like temperature and humidity, enabling early intervention to prevent spoilage. Hermetic storage solutions minimize pest and mold damage, and solar dryers offer a sustainable, off-grid drying alternative. For smallholder farmers, innovations like communal storage units, threshers for value addition, and aggregation hubs are improving storage efficiency and reducing post-harvest volume. As circular logistics and infrastructure expand, digital platforms and green financing, and traceability tools will play a pivotal role in scaling these solutions and embedding resilience across the grain value chain.

Role of Stakeholders

While private sector innovation is vital in reducing post-harvest losses, it can only thrive within a supportive public environment. Governments have a key role to play in creating the right conditions, starting with basic infrastructure like reliable electricity, rural roads, and access to markets. These public goods not only make technologies more accessible and affordable but also shift the burden of storage and drying off-farm, allowing specialized actors to step in. Predictable pricing and policy frameworks, along with better access to finance, can further unlock private investment in scalable, affordable solutions that benefit smallholders and reduce losses across the grain value chain.