Monday, May 7, 2012

NU12 by Michael Ligayo - Paper Packaging for Instant Noodles

Prof. Jorge,

Below is my NU12 for week of May 8, 2012.
Regards,
Michael Ligayo

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Paper Pouch for Instant Noddles
 
Instant Noodles has been one of the most famous and easily accessible food items. It is available almost anywhere from big supermarkets to your suking tindahan in prices that are very affordable. It is even one of the favorite requests of organizations when relief operations are on-going to give to affected families during calamities. Proof of this lucrative business is the evolution of different kinds of varieties available to today as well as the number of companies now offering it on the market. Truly, it can be metaphorically inferred that the instant noodles is the "second staple food in Asia". It is estimated that the global consumption of instant noodles will reach 154 billion packs by 2017 according to the Global Industry Analysts, Inc. I would bet hard money if there is one or two person who has not at least tasted an instant noodle, even out of curiosity for it.
 
Figure 1. Instant Noodles in a Chinese Supermarket.


The main drivers why instant noodles is such as hit is the fact that it is low cost, easy to prepare and loaded with carbohydrates at a very affordable price. Imagine getting a hot meal in less than 5 minutes in the variety you want ranging from the simple instant mami to the more complex pancit canton. Companies even continue to explore other varieties adapting from traditional Asian menus.
 
The Problem
 
From the current to the projected consumption of instant noodles, it means that billions of plastic pouches will be thrown to the environment. This includes the main packing of the instant noodles to the individually packed seasonings. This is aside from the plastic spoon and fork which either comes with the pouch or separately purchased. All of these plastic pieces will be thrown into dumpsites or worst, rivers and possibly clog drainage and sewerage systems. This is especially since those who are on depressed areas are the ones who consume a lot of instant noodles. A classic example is that of the Philippines. In addition to the quantity, most of the pouches, plastic utensils and packages used in instant noodles are non-biodegradable, making it a real threat to the environment.
 
The Proposed Solution
 
A potential solution to this issue is pretty simple – change the plastic pouches and individual packaging of powdered / dry seasoning to recyclable paper. This is most environmentally-friendly option to the problem considering the volume produced and price of the commodity. According to a Manager from Nissin (markers of Lucky Me, a local instant noodle brand), the packaging for a simple instant mami costs Nissin about PHP3.50 to PHP4.00, around 1/3 of the current price of the instant noodle. Comparing this cost to the paper pouch, which is approximately, PHP2.50 to PHP2.75, according to a packaging specialist, it can even be a potential cost-saving effort to transfer to this kind of packaging. Naturally, the savings will only be realized in-time since this is a variable cost and there are lots of fixed cost investments that need to happen before production lines are converted or replaced to produce using recyclable paper. However, the benefits are far beyond the cost savings, rather, it is on the environmental impact. 4

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