Introduction
Effective waste management is crucial for sustainable practices in the food production industry, particularly for small businesses. This blog post conducts a simplified cost benefit analysis for waste management systems in small food production businesses in Singapore. The goal is to establish a waste segregation system that separates recyclables cartons, plastic packaging and cans from food supplies, compostable food, and harder to compost food (e.g. bones, shells, husks). By implementing such a system, businesses can reduce their environmental impact, optimize resource utilization, and potentially benefit financially in the long run.
Current Challenges
Food production businesses in Singapore face challenges such as improper waste segregation, inefficient handling and disposal methods, and inadequate infrastructure. This lack of organization hinders their ability to address environmental concerns and leads to increased waste disposal costs.
For example, let's consider a food production company that produces 3,000 sets of bento meals per day. The packaging waste generated can include carton boxes, single use plastics for food packaging, plastic containers, styrofoam boxes, and other non-compostable materials.
Waste incineration cost from NEA’s IP (e.g. Keppel Seghers Tuas Waste-to-Energy Plant (KSTP), TuasOne Waste-to-Energy Plant (TWTE) etc.) is currently posted as $77/ton.
Assumptions on waste data in Food Production Factory
Recyclables (Cartons): 39,000kg / month
Recyclables (Metal): 2,000kg / month
Divertible waste (Food waste): 20,000kg / month
General waste: 11,000kg / month
Total Waste = 72,000kg/ month
Scenario A (Worst Case): No Waste Segregation at Source and No On-Site Digester
Number of General Waste Truck Trips per week = 5
Cost of Truck Use per trip = S$220
Cost of Waste Truck Usage per month (4 weeks) = S$220 x 5 x 4 = S$4,400
Cost of Incineration per month: (39 + 2 + 20 + 11) x $77 = S$5,544
Total Cost of Waste Disposal per month (4 weeks) = S$4,400 + S$5,544 = S$9,944
Scenario B: No Waste Segregation at Source and Inclusive of a On-Site Food Waste Digester
Cost of Digester Machine (1 ton/day) = S$120,000
Cost of Operating Digester (1 ton/day) per month = S$500
Expected Shelf Life = 10 years
Monthly Depreciation Cost = S$1,000
Monthly Cost (Depreciation + Operations) = S$1,500
Number of Waste Truck Trips per week = 3
Cost of Waste Truck per trip = S$220
Cost of Waste Disposal per month (4 weeks) = SS$220 x 3 x 4 = S$2,640
Cost of incinerating = (39 + 2 + 11) x $77 = S$4,004
Total Cost of Waste Disposal (4 weeks) = S$1,500 + S$2,640 + S$4,004 = S$8,144
Scenario C (Ideal Case): 100% Waste Segregation at Source Recycled with On-site Food Waste Digester
*Assume no charges incurred to off-take well-segregated recyclables
Cost of Digester Machine (1 ton/day) = S$120,000
Cost of Operating Digester (1 ton/day) per month = S$500
Expected Shelf Life = 10 years
Monthly Depreciation Cost = S$1,000
Monthly Cost (Depreciation + Operations) = S$1,500
Number of Waste Truck Trips per week = 1
Cost of Waste Truck per trip = S$220
Cost of Waste Disposal per month (4 weeks) = S$220 x 4 = S$880
Cost of incinerating = 11 x $77 = $847
Total Cost of Waste Disposal (4 weeks) = S$1,500 + S$880 + S$847 = S$3,227
Summary Table
Comparing the different waste management systems, we can see that segregating food waste and employing digesters would allow cost savings to be achieved. Businesses with significant food waste in their operations should consider these approaches to save money for their operations and also be aligned with the government mandates that would be implemented starting 2024.