Sustainable business model innovation for liquid biosilica fertilizer: value chain analysis and circular economy implementation from rice husk waste

Abstract The increasing worldwide need for sustainable agricultural inputs means that we need to produce new fertilizers that work well for farming and are good for the environment. This research presents a sustainable business plan for the production of liquid biosilica fertilizer from rice husk waste, supported by an extensive value chain analysis and consistent with circular economy concepts. A qualitative-descriptive methodology was utilized at a pilot unit in Karawang, Indonesia, to delineate the operational dynamics of the production system across all stages and participants, resulting in actionable strategies for cost optimization and market entry, as opposed to causal assessment. The results show that turning rice husk into liquid biosilica fertilizer not only cuts down on waste in the environment, but it also improves soil health, which helps the goals of the global circular economy. Break-even study showed that a monthly production size of about 310 liters was financially possible, with monthly profits of more than IDR 44 million at small to medium production stages. The extraction stage was found to be the best place to cut costs. This model shows how circular economy ideas might help rural communities become more resilient and support sustainable agriculture.