FKS Food and Agri (FKS)
is a Southeast Asian food and feed supplier. In line with its “farm-to-plate” business model, it is involved in various stages of the value chain for a wide range of agrifood products, from procurement, to packaging, to distribution. As one of the leading food suppliers in Indonesia, its business is broadly divided into three categories: Consumer Branded Food, Pantry Essentials and Staple Food and Feed.
Bungsari Flour Mills, a FKS joint-venture company, produces and distributes flour products to more than 45 cities in Indonesia, serving businesses and consumers. Most of these flour products are sold under the Bola brand, namely Bola Saju, an all-purpose wheat flour for making wheat-based dishes, and Bola Merah, a wheat-based flour used for making fritters and snacks.
FKS Food and Agri carries a range of products in industrial-sized packages, each weighing 25kg. Around 23 million such bags are produced per year using polypropylene (PP) packaging for Bungasari Flour Mills. Although polypropylene is preferred because of its strength and resistance to tears, it is not biodegradable. As it is common for end users to repurpose flour bags as trash bags, these PP bags tend to end up in landfills, taking up space, degrading very slowly, and potentially leaching harmful chemicals into the environment.
How might we develop a new packaging solution for 25kg bags of agricultural products like wheat flour, that is more sustainable and yet cost-effective?
FKS Food and Agri is looking for an innovative, sustainable packaging material for heavier wheat flour products, without compromising the strength and durability of the packaging.
The packaging solution should:
- Weigh between 90 and 100g;
- Ensure a product shelf life of over nine months;
- Be porous to allow for fumigation;
- Have a mechanical strength comparable to that of the existing PP bag for 25kg products;
Have a seal strength that can withstand a kinetic weight of 25kg;
Be able to withstand a drop test from a height of 2.5m; and
Be sealed via sewing or heat, to ensure that it is compatible with existing machines in FKS manufacturing lines.
The packaging solution should not:
Exceed the cost of the original material by more than 10%; and
Be made of paper, primarily due to cost considerations;
The pilot will be held in Indonesia and should be completed between six and twelve months.
Resources and incentives
FKS Food and Agri is providing funding of up to
for a trial.
Enterprise Singapore is augmenting this support with a
POC development grant. This POC development grant will be made available to solution providers, both local and foreign, provided that they engage in innovation development activities in Singapore.
Check out the recording from our Info Session, where FKS Food and Agri shared more about their challenge statement.
Market Potential / Business Opportunity
The 25kg packaging material, if successful, can potentially be adopted for products like refined sugar, corn flour and rice flour within FKS Group. An estimated 80 million bags are produced for these purposes each year.