Funded project – Reducing food waste in manufacturing by developing food products
The project developed innovative food products from pea pollard and created a process for upcycling surplus food materials typically used as animal feed.
Background
This initiative sought to establish a process for upcycling food waste products into value-added items suitable for human consumption. The project focused on enhancing the value of pea pollard and pea kibble by transforming these materials from animal feed into innovative food products for human consumption.
GrainOut, which specialises in sustainability solutions for food waste from manufacturing, secured a continuous supply of pea pollard. The organisation's work centres around applying circular economy principles to provide solutions for large food and beverage manufacturers. Monash Food Innovation (MFI), a world-class facility at Monash University's Clayton campus, has industry experts and cutting-edge technology that supports every stage of new product development, from discovery to strategic implementation.
Monash Food Innovation developed a methodology for transforming GrainOut's raw products into innovative food solutions. The MFI team, drawing upon their extensive experience in launching hundreds of products, provided both proven methods for innovation and practical guidance to help GrainOut design and bring their concepts to market.
Research undertaken during the project identified significant opportunities in export markets for developing new food products with high nutritional value, particularly as an alternative source of non-meat protein.
| 19/07/2021 | Contract signed and executed. |
| 01/03/2022 | Project plan, timeline and collaboration agreement between GrainOut and Monash Food Innovation Centre (MFIC) were submitted and executed. |
| 30/60/2022 | Comprehensive documentation was submitted, including student team data, photographic evidence, market analysis, product development report, retail readiness assessment, food waste transformation model, communications deliverables and progress report. |
| 01/09/2023 | Financial documentation, product specifications, market research findings, food waste analytics, retail performance data and progress report were submitted. |
| 31/05/2024 | Project completion, including finalisation of acquittal and evaluation processes. |
Challenges
- Managing raw material supply proved difficult without incurring significant storage and consolidation costs, whilst securing consistent supply to meet consumer demand presented ongoing obstacles.
- Market research indicated that pea flour had limited usage in local markets, despite the $3.9 billion flour and grain milling industry. With its distinctive texture suited to savoury foods, pea flour suffered from low consumer awareness and required substantial marketing investment.
- Larger baking manufacturers, representing high-volume channels, demanded consistent supply, which proved challenging to maintain.
- The organisation's attempts to sell through wholesale or online channels (such as Yume and eBay Food) were unsuccessful due to competition from overseas products.
- Launching a direct-to-consumer (D2C) website necessitated significant investment whilst offering limited retail sales potential.
Outcomes – what worked?
The initiative contributed to the circular economy through upcycling Australian pea by-products—traditionally used as animal feed—into food-grade pea flour. This created a new value stream for agricultural by-products whilst reducing waste.
The organisation established an export market for Australian pea flour in the Mediterranean, India and Southeast Asia through partnerships with traders in Singapore and Vietnam. These partnerships enabled market access in regions where pea flour was an established cooking ingredient, particularly in Southeast Asia where it served as an alternative in dishes such as dumplings.
Through collaboration with social enterprises STREAT and the Asylum Seeker Refuge Centre, the organisation conducted product trials that validated the flour's effectiveness whilst strengthening community relationships.
Insights to share with other businesses
Partner Strategically
The Monash Food Innovation Centre partnership was instrumental in developing innovative food solutions. Their framework and programme provided essential support for transforming food waste into viable products.
Research Market Demand
Despite successfully converting downgraded pea kibble into premium pea flour with FTA and Goodness Flour, the project faced challenges due to limited consumer awareness in the Australian market.
Implement Robust Financial Controls
Whilst achieving project objectives within budget, in-kind contributions exceeded projections. This experience emphasised the necessity of clear scope definitions and strict project accountability.
Production costs were higher than initial estimates, though the project succeeded in establishing a viable manufacturing process.
What’s next?
GrainOut plans to expand its export market of locally manufactured pea flour through its partnerships, targeting growth exceeding 30 metric tonnes annually.
Further Investment
The parent company, Benzoil, will provide funding support for future capital investment in food waste upcycling initiatives.
Other Circular Solutions
The organisation is currently managing 23 projects focused on repurposing and upcycling food by-products and waste. Of these, 11 are in execution phase, 3 are in progress, and 9 are prospects. Projects will be prioritised according to customer requirements and commercial viability.
From the grantee
“CEBIC funding has enabled GrainOut to develop partnerships to upcycle food by-products into new food innovations for the export market. GrainOut believes that Sustainability Victoria's circular economy initiatives will build a culture of innovation in upcycling waste streams to create value for organisations.”
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