Turning waste to value: ASEAN SME-start-ups opportunities for transforming agricultural by-products into circular economy

By Apiradee Treerutkuarkul

Organic rice straw can be converted into high-quality pulp using less energy and fewer chemicals, while reducing climate impact

Chiang Rai — It’s post-harvesting season and workers have just finished the latest lot of paper pulp made from organic Hom Mali rice.

An estimated 400 kg of paper pulp is expected out of this batch. The produce will be made ready for sale to a packaging manufacturing client, meaning additional income that will go to farmer members of the Wiang Chai Farmers Community Enterprise, says plant manager Mr Monthon Wongphad as he is explaining the pulp-making process to a group of visitors from ASEAN nations participating in a recent regional knowledge exchange workshop on the agricultural circular economy and decarbonisation.

Thailand, as one of the ASEAN Member States, takes the lead in sharing practical experience and knowledge in driving solutions towards sustainable agriculture. Rice straw is one of the key by-product samples. Without incentives or management methods, farmers often burn rice straw and stubble to quickly clear their farmland despite climate, health and pollution risks.

Thanks to the Promotion on Sustainable uses of Agricultural Value Chains in ASEAN (ASEAN AgriTrade II) project, and the ASEAN-German Piloting Sustainable Use of Rice Straw project implemented in Wiang Chai district, both farmers upstream and entrepreneurs in the rice production supply chain can earn additional income while working in partnership with the private sector to reduce carbon emissions from the rice production process.

“Innovative use of rice straw enables rice smallholders upstream to earn better income while reducing carbon emissions. Meanwhile, distributors downstream could also drive the bio circular green economy into practice,” said Mr Arvind Narula, Urmatt Chief Executive Officer.

Representatives from GIZ and Urmatt Ltd at a recent launch of the cooperation agreement on innovative pulp making from rice straw

As a social enterprise in certified organic rice and rice derivative products, Urmatt has collaborated with GIZ to put into practice innovative use of rice straw, with community rice smallholders.

Assistant Professor Wirongrong Tongdeesoontorn, Assistant Dean/Lecturer in the Postharvest Technology Programme at Mae Fah Luang University, showcases pulp made from organic rice straw during a training session

Through the project, a pulp-making machine is handed over to Chiang Rai Organic Agriculture Community Enterprise. Urmatt seeks expertise and technical support from Mae Fah Luang University on pulp making at the beginning phase to work with local farmers and oversee the biological pulp-making process. After harvesting, farmer members of the community enterprise bring their straw bales to sell. Each member receives about 5,000 baht as an incentive in total from rice straw collected from their 10-rai rice paddies. Mr Narula said the pulp-making capacity of the trial phase was 3 tonnes/day and would be increased up to 10 tonnes/day by next year in a bid to make a real impact on carbon emissions reduction. 

Mr Narula said biogas and carbon dioxide could also be extracted as by-products for use in the rice production process apart from making pulp, helping reduce energy use.

Changemakers to a circular future

In a neighbouring province of Chiang Mai, agricultural waste and residues are brought back to life by an innovation-driven social enterprise: Papa Paper/Pal Plus. Growing up in a handmade mulberry paper making family, Mr Thanakorn Supasa has seen his father buy agricultural scraps including banana stems, bagasse, corn husks, and coffee grounds from farmers since his early childhood.

When his father passed the baton, Mr Thanakorn wanted to upscale his family business while creating benefits yet with a sustainable impact on society, community and the environment.  “Global warming and pollution caused by human activities are closely linked resulting in not only climate change but also public health hazards. As a start-up, we can build brands, bridge businesses and communities and transform agricultural waste to fibre for package manufacturing that provides better livelihoods and good health,” he said. 

Research-based technology also enabled the social enterprise to produce packaging products made from corn husk, rice straw and banana stems. These eco-friendly products are waterproof and fireproof – durable packaging solutions. Five years after introducing the brand, Papa Paper/Pal Plus has been well recognised in both online and offline packaging markets. The brand won national awards from the National Innovation Agency and Thai Science Research and Innovation. The brand was also selected to represent Thai start-ups at a recent Viva Tech – regarded as the largest start-up and innovation tech event in Europe.

Award-winning upcycling creative product designs showcased during a recent Viva-Tech event in France (Photos Credit: Paper/ Pal Plus)

Mr Thanakorn and team of partners also expanded the business to cover upcycling creative products including apparel and bags, etc. “Green business is not an option, but the future in which everyone must take part,” said Ms Erika Manutham, Papa Paper/Pal Plus Chief Managing Officer.

However, there are new rules and regulations, for example, EU Deforestation Regulations, Packaging and Packaging Waste Regulations, and Ecodesign for Sustainable Products Regulations that start-ups should take into account to ensure business resilience and sustainability throughout the process, without compromising creativity and the quality of the brand, she said.

 Ms Pouchamarn Wongsanga, ASEAN AgriTrade Regional Component Leader, said this knowledge-sharing workshop demonstrated that agricultural waste and residue could be transformed from an environmental burden into an economic opportunity. “Initiatives carried out in Thailand have shown how climate-smart solutions can simultaneously reduce emissions, improve soil health, and generate additional income for farmers and local communities. A platform for dialogue and collaboration should also be available to enhance public-private partnerships in driving innovation and scaling sustainable solutions, not only in Thailand but also throughout the ASEAN region.” ■

Doi Tung Zero Waste Model

Recycling station at the Mae Fah Luang Foundation

Thailand generates as much as 27 million tonnes of solid waste/year, with plastic a major issue. Inadequate waste management could lead to severe environmental degradation, health risks and climate change, particularly via methane emissions.

To put into practice waste management solutions, the Mae Fah Luang Foundation fully adopts the ‘Zero Waste to Landfill’ approach and integrates circular economy principles by sorting waste into over 44 categories, utilising organic waste for making animal and Black Soldier Fly Larvae (BSF) feed, biogas, and compost, recycling materials including plastic, glass, paper and metal, and converting waste into energy both at the Doi Tung Development Project and at a cement plant in Lampang.

Dr Thanapong Duangmanee, Director of Environmental Policy of the Mae Fah Luang Foundation, said the Doi Tung Zero Waste model has become a prototype and put into practice in the area around the Doi Tung Development Project. Key components of the model include waste separation at sources, for example, restaurants, tourism areas and factories to reduce landfill contributions. Waste is extensively sorted at the Doi Tung Material Recovery Facility before being recycled or utilised in other ways. 

Coffee capsule recall project for recycling and macadamia nutshells for biofuel/
Photo Credit: Mae Fah Luang Foundation
Coffee grounds are turned into compost. Used coffee cups are used to make gift boxes. Macadamia shells, leftover mulberry paper and fabric, as an alternative to LPG, are converted into biofuel to generate the process of hot water or hot air for macadamia, mulberry paper, cloth dyeing and ceramics factories. A community-led approach is adopted to empower the community to protect the environment while ensuring sustainable livelihoods.
Packaging made from leftover mulberry paper and fabric Photo Credit: Doi Tung Official Store

The foundation is recognised for implementing holistic waste management and environmental preservation and has been awarded top-level certification, such as the G-Green Production Award for ceramics and textiles, Design Excellence Award (DEmark) 2020 and Prime Minister’s Export Award 2021.

It is promoted as a learning centre for local and international organisations, education institutes and people interested in waste management solutions.

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