The causal relationship of factors influencing the circular economy of the food processing industry in Thailand

Abstract

Thailand's food industry is an important factor in driving the economy. Both contribute to the preservation of environmental quality along with the sustainable development of the food industry. Supply chain management of ready-to-eat food production starts from raw material preparation to food processing through various environmentally-friendly processes under the circular economy principle. This research aimed to 1) study the effectiveness of the operation under the circular economy principle of the food processing food industry in Thailand developed with empirical data and 2) study the influence of factors on the performance under the circular economy principle of the food processing industry in Thailand. Quantitative research regulations were used through questionnaires as a tool to collect data from 220 sets of juristic entrepreneurs and manufacturers who operate ready-to-eat food in Thailand. Descriptive statistics were analyzed and data were collected using statistical analysis and a structural equation model (SEM).

The research found that the performance factor under the circular economy principle of the ready-to-eat food industry was significantly positively impacted by environmental logistics factors and the positive direct impacts of environmentally friendly practices. These were useful for businesses to formulate strategic guidelines to improve processes in green supply chains under circular economy principles such as the efficiency of logistics processes and the reduction of waste and pollution, as well as the strengthening of access channels for green innovation. Importantly, it was also an upgrade of the ready-to-eat food industry in the future and the development of production bases for Thai entrepreneurs to support sustainable opportunities for new trade markets in the future.