A FEASIBILITY STUDY FOR A SUSTAINABLE MANUFACTURING HUB TO REDUCE FOOD WASTE BY BETTER RESOURCE ALLOCATION

THE CHALLENGE

Food waste is a major challenge for South Australia’s food industry, costing the economy billions annually and representing approximately 26% of C&I waste by weight (Green Industries South Australia,2025). The BEACON project addresses this by establishing a shared manufacturing hub, based on a sharing economy model, enabling resource-constrained small and medium scale enterprises (SMEs) to access specialised equipment, processing capabilities, and infrastructure without large upfront investment.

This hub allows SMEs to implement circular economy practices, improving resource efficiency, reducing food loss, and creating value from by-products through activities such as upcycling, secondary processing, and new product development. The project will quantify food waste, identify patterns, challenges, requirements, and opportunities across key food sectors. Based on these insights, alternative hub configurations (multiple potential models) will be proposed and compared using multi-criteria assessment (including techno-economic and environmental evaluation), and assessed for absolute environmental and economic impact, considering governance, infrastructure, technology, and site requirements.

OUR PLAN

The BEACON Project aims to establish a concept for a commercially viable shared manufacturing hub that significantly reduces food waste, strengthens SME competitiveness, and accelerates South Australia’s transition towards CE. By reducing and redirecting food waste through shared infrastructure, collaborative research and development, and circular practices, BEACON will enable SMEs in the food sector to unlock new revenue streams, lower operational costs, and create scalable pathways for sustainable growth.

To operationalise the shared manufacturing hub concept, the project will define a modular approach, where functions can be shared across multiple SMEs. This approach aligns with CE principles, emphasising resource efficiency, cascading use of materials, and value retention across multiple pathways.

A strong economic lens will guide the project, including indicative outcomes such as approximated waste reduction potential, cost savings benchmarks, new income opportunities and ROI metric to evaluate the proposed shared hub. Early milestones include collecting baseline data, validating industry waste volumes, and conducting a comparative analysis of similar initiatives to inform best practices. The key outcomes focus on four core areas:

1. Food Loss and Waste Reduction will be achieved by enabling SMEs to reduce food loss and/ or repurpose by-products through shared infrastructure and circular practices, significantly reducing the volume of waste and diverting material from landfill. This will be supported by data-driven estimates of potential diversion and economic value recovery.
2. Industry Profitability and Growth will improve as shared manufacturing facilities combined with circular economy practices reduce operational costs and open new revenue streams through byproduct valorisation. Benchmarks from Food SA, statistical data, and comparable projects will inform estimates of cost savings and income opportunities, creating a strong business case for adoption.
3. Rescued Food Distributed will increase through structured pathways that redirect food from landfill toward redistribution or secondary processing. This will contribute to measurable gains in food available for human consumption or alternative valorisation, strengthening social and environmental impact.
4. Sustainability and Skills Uplift will be advanced by reducing methane emissions and supporting carbon-neutral goals. BEACON will provide recommendations for embedding sustainable practices and identifying training pathways, fostering job creation in waste valorisation and circular product development, and driving skills uplift and leadership development across the sector.