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.