A Digital Solution for Food Circularity

Company and project background

DeFood is a Polish agritech company that operates a digital marketplace for fruits and vegetables. Our core mission is to improve transparency and efficiency in the agricultural supply chain using digital tools. The WasteNot AgroMarket project was launched to address the problem of product rejections and food waste by enabling farmers and trading companies to quickly resell second-grade or surplus produce. The solution integrates with our main DeFood trading system and adds a dedicated module for “Hot Sale” listings of downgraded goods.

What motivated you to make your business more circular?

We were motivated by the high volume of food that is wasted due to cosmetic imperfections or logistics constraints, despite still being edible or usable for processing. Internally, we saw a business opportunity in creating value from losses. Externally, increasing awareness about food waste and circular economy encouraged us to act. We also received repeated feedback from our partners that quality rejects are a financial and environmental burden they cannot address alone.

Implementation Process

What were the objectives of your project?

Our main goal was to assess the technical, operational, and financial viability of a new platform that could reduce food waste by facilitating trade of second-grade products. We set indicators such as expected CO₂ savings per tonne transported, adoption rates, and the percentage of recovered rejected goods. The study also explored automation features using AI, such as extracting data from return documents to generate sale offers.

What activities did you carry out as part of your project?

The project included six months of structured implementation. We began with in-depth market research and user interviews, followed by mockup design and usability testing. Then we created the business plan, pricing model, and projected environmental and financial impact. We consulted with logistics providers, producers, farmers, distributors and buyers (including retail chains buyers) to ensure feasibility and relevance of the solution.

What feedback did you receive from stakeholders (customers, suppliers etc.)?

Stakeholders were enthusiastic, especially producers who currently lack solutions for dealing with quality returns. Buyers appreciated the potential for discovering cheap, still-usable batches. However, retailers were more cautious and prefer to stay observers for now. Their feedback shaped our decision to prioritize processors and trading companies as core user groups. We also received suggestions for automation, such as generating listings from photos and documents.

Impact & Outcomes

What are the main results and outcomes of the project for your company?

We supported the regeneration service, which opened up an additional revenue stream. Customers began to use our machines more often as a tool for managing the entire tool life cycle, not just dispensing. In terms of image, our company is perceived as more innovatWe confirmed a real market gap for this type of solution and validated our assumptions about user needs. We developed a full business and implementation plan, including a projected breakeven point at 16 months after launch. Technically, we completed a ready-to-develop mockup and architecture aligned with our existing system. We also defined the operational team structure for launch.ive and responsible.

Did you detect a positive impact of circular transition for your company and for the environment?

Yes. The feasibility study showed that with proper logistics and recovery mechanisms, we could reduce CO₂ emissions by 0.82 kg per transported tonne. This is achieved through improved logistics utilization and an 80% reduction in waste volumes — from 5% down to 1% of delivered goods.

Which changes have you already implemented?

At this stage, we have completed a full feasibility study and designed all key functionalities, mockups, and an implementation roadmap. However, the platform module is not yet live. We are currently preparing for the stage of development and looking to secure funding for the implementation and pilot phase.

Lessons learned

What key lessons did you learn regarding circular innovation?

Circular models must be simple and beneficial for all parties. The biggest insight was that producers are open to using such platforms if the process is frictionless and fast. Also, designing for urgency is critical – perishable goods need real-time decisions, not delayed approvals.

Did you encounter any challenges?

One challenge was getting accurate data about logistics and quality rejections. Many producers don’t track these losses systematically. Also, we underestimated the need for educational support – many users needed help understanding the value of second-grade products. We addressed this by preparing onboarding materials and planning training modules.

If you could do your project again, what would you do differently?

We would involve logistics providers earlier and allocate more time for pricing simulations. We also would have started usability testing sooner – some of the features we initially proposed turned out to be too complex for daily use and had to be simplified later.

Future plans & recommendations

What are your next steps towards circular transition? (Which partners would you like to team up with/collaborate)?

We plan to develop the regeneration service on a larger scale, including for other tOur next step is to launch the platform module in a real trading environment and onboard a critical mass of producers and buyers dealing with second-grade produce. We also plan to deepen partnerships with logistics providers to improve the efficiency of waste recovery. Additionally, we are exploring ways to replicate the model in other markets where food losses in the supply chain are still high and under-digitalized.ypes of tools. We are also considering cooperation with tool manufacturers in a partnership model. We also want to expand the functionality of the machine with tool wear analytics.

Is there any advice you would give to other SMEs looking to implement a circular project?

Start with a small, clearly defined inefficiency in your current business – that’s where circular value often hides. Build solutions that are user-friendly and bring quick wins. Don’t overcomplicate the first version.

How can policymakers or financial institutions better support businesses in adopting circular practices?

We believe circular funding should include not just R&D but also user testing, communication, and marketing. Many good ideas fail because they don’t reach the right users. Policymakers should also consider incentives for buyers and suppliers who adopt circular practices, not just producers.

Do you have any additional comments or reflections about your participation in the Up2Circ project?

Up2Circ helped us shape a solution that we knew was needed, but didn’t have the framework to build. The structured timeline and expert support helped us stay focused, validate our assumptions, and prepare a scalable model. We are thankful for the opportunity and proud to be part of the transition toward a circular agri-food economy.