In the heart of Indonesia, a quiet revolution is brewing in the smallholder dairy farming community of Sarangan, Magetan. Researchers, led by Kusnul Ciptanila Yuni K. from the Department of Islamic Economics at Hasyim Asy’ari University, are reimagining the future of dairy farming through the lens of a circular economy. Their work, published in the journal *Jurnal Perspektif Pembiayaan dan Pembangunan Daerah* (Journal of Financial and Regional Development Perspectives), offers a blueprint for enhancing farmers’ livelihoods while promoting environmental sustainability.
The study focuses on redesigning a Circular Business Model Canvas (CBMC) for smallholder dairy farming, a concept that integrates circular economy principles into the core of dairy operations. “We wanted to create a model that not only boosts farmers’ income but also aligns with global sustainability goals,” Yuni K. explains. The redesigned CBMC emphasizes eco-conscious value propositions, diversified revenue streams, and multi-stakeholder partnerships, setting a new standard for agrifood systems.
The financial feasibility of this model was assessed using the Benefit–Cost (B/C) ratio, revealing promising results. Under normal and peak demand conditions, cheese processing, yogurt production, and a tourism café proved financially viable, with B/C ratios ranging from approximately 2.4 to over 6. However, the model struggled under low-demand conditions, highlighting the need for strategies to mitigate seasonal fluctuations.
Beyond financial viability, the study maps the model’s contributions to the Sustainable Development Goals (SDGs). The findings show significant alignment with SDG 8 (Decent Work and Economic Growth, 85%), SDG 6 (Clean Water and Sanitation, 80%), and SDG 7 (Affordable and Clean Energy, 75%). While contributions to SDG 12 (Responsible Consumption and Production, 70%) and SDG 15 (Life on Land, 60%) were lower, the model still offers a robust framework for sustainable development.
The research also identifies key challenges, including farmer resistance to adopting new practices, limited access to capital, and seasonal demand fluctuations. “Addressing these barriers is crucial for the scalability of the model,” Yuni K. notes. The study provides strategies to overcome these obstacles, paving the way for broader adoption.
This research is a significant step forward in applying circular business models to agrifood systems. By integrating business model redesign, financial feasibility, and SDG mapping, it offers a replicable framework for smallholder dairy–ecotourism communities in developing regions. As the world grapples with the dual challenges of climate change and economic inequality, such innovative approaches are more critical than ever.
The implications for the energy sector are particularly noteworthy. The model’s emphasis on clean energy and sustainable practices aligns with the growing demand for renewable energy solutions. As Yuni K. points out, “The energy sector has a vital role to play in supporting these circular economy initiatives.” By fostering partnerships and investing in sustainable technologies, the energy sector can drive the transition towards a more circular and resilient economy.
In conclusion, this research offers a compelling vision for the future of smallholder dairy farming. By embracing circular economy principles, farmers in Sarangan and beyond can enhance their livelihoods while contributing to global sustainability goals. As the world looks towards a more sustainable future, the lessons from Sarangan serve as a beacon of hope and innovation.