IPI Innovation & Technology Senior Manager, Adeline Chan, advises businesses to consider the potential of transforming agri-food side streams—products that are typically discarded—into valuable products for growth and sustainability.

 

The adage that one person’s waste is another’s treasure rings especially true in the world of agri-food by-products. While stems, roots, bones, skin and seeds may appear to have no further use, these often-discarded components, which typically end up in landfills or incinerators, hold immense potential for sustainability and economic growth.

According to the Food and Agriculture Organization of the United Nations, about 14 per cent of the world’s food is lost before even reaching consumers. Indeed, enhancing the value of such waste through valorisation represents an opportunity to turn resource management on its head.

“By focusing on agri-food side-stream valorisation, we not only reduce waste and conserve natural resources, but enhance food security and reduce reliance on external markets—driving a more resilient, sustainable future,” said IPI Innovation & Technology Senior Manager Adeline Chan.

Find out how agri-food innovation and sustainable practices can turn food side streams into high-value products—improving both economic potential and environmental challenges.

From yuck to yum

One of the most promising opportunities is turning food side streams into new edible products, such as alternative proteins, functional ingredients or even animal feed.

“It allows us to get more from less by finding creative solutions for unwanted side streams,” Adeline shared.

One clear example of this potential is the upcycling of fish by-products into good-for-you ingredients. A Thailand-based start-up  has developed an environmentally friendly process that efficiently transforms fish by-products into nutritious protein powder that can be added to food, enhancing flavour.

Separately, another technology provider is working to commercialise bioconversion techniques that convert various food side streams into edible protein using a cocktail of precision methods involving enzymes and algae.

Side stream valorisation has proven to be a successful business model for companies like ARB Technologies. At TechInnovation 2018, CEO, Robin Low met an innovation scout from Japanese general trading company, Mitsui. Through a collaboration facilitated by IPI, Mitsui harnessed ARB’s green chemistry expertise to convert shrimp waste into chitin—a higher value material. ARB has since further expanded internationally to provide sustainable natural biomaterials from side-streams.

Turbocharging energy and material solutions

Agri-food side streams can also be converted into sustainable materials and bioenergy—providing an eco-friendly alternative to conventional products and processes that may have a large carbon footprint.

For instance, a Singaporean startup has developed a process to transform lignocellulosic fibre side streams into an alternative to plywood, which is commonly used in furniture and construction. The startup’s method helps reduce reliance on wood, addressing climate-related issues like deforestation and carbon emissions.

Similarly, a local research institute has discovered ways to upcycle human hair and other external tissues like feathers and wool into biodegradable bioplastics, innovating a green packaging solution that eschews fossil-fuel-derived plastics.

When it comes to energy, local start-ups such as Green COP are fuelling the conversion of food waste into bioenergy. Green COP developed patented technology that transforms agricultural waste into biofuels, specifically targeting the maritime industry’s carbon emissions. Through IPI, the start-up connected with IOI Corporation Berhad, a major palm-oil producer, to convert empty fruit bunches from palm-oil processing into biofuel, which can be used to power transportation services in the maritime industry.

Towards mastering valorisation

While the potential benefits of agri-food side-stream valorisation are substantial, companies are advised to approach this process strategically. Valorisation is not a one-size-fits-all solution—each side stream is unique, and requires the right technology and multifaceted approaches to unlock its full potential. In particular, companies need to assess how their resources, processes and market intersect to create value from these by-products.

To guide businesses in this journey, the ‘MaSTER’ framework can be a useful tool:

  • Market demand of valorised product: The first step is ensuring there is sufficient demand for the valorised product. Companies should conduct thorough market research and consumer surveys to validate product viability, keeping in mind factors like willingness to pay, diverse market segments and feedback that can be used to improve market fit.
  • State of the agri-food side stream: Not all side streams are created equal. Companies must assess the availability, quality and logistics of side streams. For example, evaluating if side streams need to be sorted or segregated, the volume required to achieve economies of scale and the costs associated with transporting these materials. In some cases, co-locating conversion facilities with the source of side streams could help bring down costs.
  • Technology and infrastructure: The choice of processes and technologies can make or break a company’s valorisation goals. “Start with the end in mind,” Adeline advised. “Deploy technologies that don’t require high capital expenditure and engage with the market to look for potential buyers or partners who are interested in the valorised products.”
  • Environmental, social, and governance (ESG): Beyond financial returns, businesses need to evaluate their sustainability practices. For instance, are they implementing ethical, sustainable processes that not only reduce waste but also improve their ESG metrics?
  • Regulations and standards: Valorisation has myriad opportunities on a global scale, and navigating various complex regulatory environments adeptly is a must. Understanding, and adhering to, standards like ASEAN guidelines, the Codex Alimentarius or ISO certifications is crucial for ensuring compliance and planning for international expansion.

SMEs and start-ups face unique challenges in this space, such as lower economies of scale and meeting varying regulations across markets. “However, these hurdles can be surmounted through collaboration with partners that provide advisory services for SME, like IPI. Such services can help companies find the right technologies and connect with potential buyers for their products,” advised Adeline.

Furthermore, SMEs and start-ups can also tap into IPI’s resources, such as its e-guides, attend large-scale agri-food events and conferences to become part of the ecosystem and consider government grants to kickstart collaborative projects.