Impact Of Production Waste Utilisation (Reuse And Recycle) On Circular Economy

A Case Study Of Waste Management In Food & Beverage Industry

Abstract

This research examines the implementation of circular economy in the dairy processing industry through the utilization of production waste. With waste volumes reaching 700 tons per year and handling costs of IDR 180 million, the dairy industry faces significant challenges in waste management. This study uses a case study approach to analyse the effectiveness of a program to reuse and recycle dairy production waste into economically valuable animal feed. The research methodology used descriptive analysis of pre- and post-program operational data as well as evaluation of socio-environmental impacts. The results showed that the implementation of circular economy not only significantly reduced waste handling costs, but also created added value for all stakeholders in the dairy industry value chain. The program successfully transformed the waste burden into productive resources, supported environmental sustainability, and improved the welfare of partner farmers through the provision of quality animal feed at affordable prices. The study generated a circular economy implementation framework that can be replicated by similar industries, emphasizing the importance of innovation and collaboration in creating sustainable solutions to industrial waste management challenges