What food manufacturers must know and how smart equipment like the Mavitec Paddle Depacker can help

In a major step for waste management and the circular economy, the state of New South Wales (NSW) has passed landmark legislation that will require businesses handling food waste to implement source-separated food organics collection services starting from 1 July 2026. For food-manufacturing operations, this means the clock is now ticking: you need to review your waste streams, separate food organics from general waste, and consider how on-site equipment and processing can play a role. In this article we’ll map out what the mandate requires, the implications for food-manufacturing and processing facilities, and why advanced depackaging technology such as the Mavitec Paddle Depacker offers a strategic pathway to compliance, operational efficiency and sustainability leadership.

What is the NSW FOGO Legislation?

In brief: NSW has introduced a statewide mandate for Food Organics and Garden Organics (FOGO) recycling. The legislation amends the Protection of the Environment Operations Act 1997 (NSW) via the Protection of the Environment Legislation Amendment (FOGO Recycling) Act 2025 (often referred to as the FOGO Act). Major features include:

• From 1 July 2026, businesses and institutions in NSW that sell or handle food (including supermarkets, cafes, schools, hospitals, hotels, and food-manufacturing/processing sites) and that generate at least 3,840L of residual (general) waste per week must source-separate food waste from general waste.
• Subsequent phases: from 1 July 2028, the threshold drops to 1,920 L/week; and from 1 July 2030, 660L/week.
• For households, councils must provide FOGO collection services by 1 July 2030.
• Non-compliance carries heavy penalties: up to $500,000 for businesses and additional $50,000 per day for continuing offences.
• Large supermarkets have additional reporting requirements (food donations by category) under the regulations.

A helpful cheat sheet on the new regulations can be found on the MRA Consulting Group website.

What does 3,840L of residual (general) waste per week look like?

If your facility fills two small skips, or six large 660L bins of general (non-recycled) waste every week, you fall into the first rollout group for FOGO compliance from 1 July 2026.

For most food manufacturers, large retailers, or hospitality hubs, that’s a realistic weekly volume, meaning the time to plan equipment and separation systems (such as a Mavitec Paddle Depacker) is now, not mid-2026.

Why now?

Food organics represent a large and growing share of business waste streams. According to the NSW Environment Protection Authority (EPA), food waste is the single biggest material in business waste going to landfill (outside of health care). With landfill capacity in Greater Sydney predicted to be reached by 2030 or earlier, and strong governmental pushes toward the circular economy, the mandate is both an environmental necessity and a business imperative.

If you take the time to watch the information session hosted online by the NSW EPA, it stresses for main drivers for the legislation:

1. Organics are NSW’s largest landfill stream. NSW generates ~1.7 million tonnes of food waste per year, about 22% of Australia’s total.
2. Huge emissions upside. Food waste in landfill produces ~3.1 million tonnes CO₂-e, estimated as 56% of landfill emissions. Diverting 1 tonne of food waste avoids ~2.2 tonnes of CO₂-e.
3. Landfill capacity is tight. NSW faces serious capacity constraints by ~2030. Freeing up airspace by diverting organics is essential.
4. Most business sectors are food-waste heavy. A recent C&I audit found organics were the largest waste stream in every sector except healthcare (dominated by hygiene products).

Crucially, the EPA notes ~70% of food waste is still edible, highlighting upstream prevention and donation monitoring program alongside recycling.

Why Depackaging and On-Site Pre-Processing Makes Sense

Many food-manufacturing operations generate complex waste streams: off-spec packaged goods, bulk rejects, mixed packaging, product remnants in mixed packaging (bags, trays, sleeves). For example, a large bakery may produce returned packaged bags; a beverage plant may have bottles, caps and liquid; a dairy facility may have cartons with residual fluid and packaging.

If the food waste is still embedded in packaging, sending it simply to a “food organics” collection may not meet the requirements for reuse or composting or biogas feedstock (or may incur rejection/contamination costs). That’s where depackaging as a solution becomes highly relevant.

What is a depackaging solution?

Depackaging systems separate the organic content from packaging materials, delivering a cleaner:

1. Organic fraction which can go to:
   1. Composting (Aerobic Processing): production of compost and soil conditioners.
   2. Anaerobic Digestion (AD): generation of biogas (renewable energy) and digestate for land application.
   3. Animal-Feed Reuse (Including Insect Farming): production of high-protein animal feed (directly or via insect bioconversion).
2. Packaging fraction which can be recycled separately.

The process reduces residual contamination, improves separation efficiency, and lowers disposal/recycling costs.

Value-proposition for food manufacturers

• Converts packaged rejects and mixed food waste into clean streams.
• Reduces the volume of packaging sent to landfill/recycling, and increases the value of the organic stream.
• Prepares the business for regulatory separation of food organics and enhances the quality of output.
• Supports sustainability goals, improves circular economy credentials, and may reduce waste-handling costs.

Given the 2026 mandate for source separation in NSW, depackaging on-site becomes a logical investment for manufacturing operations.

Introducing the Mavitec Paddle Depacker: A Strategic Solution

Founded in the Netherlands, Mavitec is a globally trusted manufacturer specialising in high-performance systems for food waste depackaging, rendering, and biogas feedstock preparation. With decades of engineering experience and installations across Europe’s leading food processors, waste recyclers and energy producers, Mavitec has built a strong reputation for reliability, efficiency and product quality.

The Mavitec Paddle Depacker is an advanced depackaging solution that aligns with the needs of food-manufacturing operations preparing for the NSW FOGO mandate and was recently featured in Waste Management Review. Below are key features of the Mavitec solution and reasons why it is relevant to manufacturers in Australia and New Zealand.

Key Features

• Heavy-duty design built for processing food waste and mixed packaged waste streams (supermarket waste, factory rejects, restaurant/hotel waste etc.).
• Delivers very high separation efficiency: organic output > 99.7 % clean on dry matter, and low contamination in packaging stream.
• Capability to process both dry and wet materials.
• Adjustable screen sizes and paddle angle/retention time.
• Easy maintenance: quick-opening hydraulic doors, bolt-free screen exchange, stainless steel isolated splash shields, low noise operation.
• Compact footprint for the Model S variant (ideal for smaller facilities).

Why it matters for NSW food-manufacturing operations

• By facilitating the separation of packaging from organics, the Mavitec unit helps manufacturers produce a clean organic stream that is better suited for collection under the FOGO mandate and downstream reuse (composting, biogas, animal feed).
• It addresses contamination risk upfront (packaging fragments, plastics, rigid containers) which might otherwise undermine the quality of the organics stream and lead to rejection or higher processing costs.
• In a scenario where a food-manufacturer is generating packaged waste (returns, off-specs) or mixed waste, the unit enables internal processing rather than sending large volumes of mixed waste to residual bins or paying premium collection/disposal fees.
• The investment supports compliance with the July 2026 deadline for large-scale food-waste generators, giving the business operational readiness and future-proofing.

The following 2 videos shows the Mavitec products in action and provide a visual on how depackaging can meet the requirements of packaging separation:

1. An installation where mixed organic supermarket waste is separated.
2. A product trial conducted on expired pineapple cans, separating the metal from the organics.

Practical Checklist for Food-Manufacturing Facilities in NSW

To help your operation get ready, here’s a practical checklist aligned with the mandate and equipment planning:

1. Waste audit: Determine current weekly general waste residual volume (L or number of bins). Identify food-waste volume, packaging vs organics ratio.
2. Threshold assessment: If ≥ 3,840 L/week residual waste, you’re in the 1 July 2026 phase; if less, plan for 2028/2030.
3. Segregation planning: Identify zones where food waste is generated (production line, packaging rejects, spoilage). Plan for separate FO bins for pre-processing.
4. Collection contract review: Engage with your waste service provider to ensure food organics collection (FO bin service) is planned in time for the 1 July 2026 deadline.
5. Infrastructure & equipment: Evaluate whether on-site depackaging, shredding, compacting or storage systems are needed or a more sustainable solution.
6. Contamination control: Develop signage, training, monitoring for the correct disposal of organics vs packaging, and ensure compliance with acceptable materials in FO bins (food, compostable liners, paper liners) and exclusion of non-organic items.
7. Operational process change: Train staff, redesign bin placement or in-line waste transfer, schedule more frequent collection if required (the EPA notes weekly FO collection is required for food waste).
8. Business case & cost modelling: Estimate savings from diverted landfill costs, potential revenue/benefit from repurposed organics, and evaluate ROI of equipment investment.
9. Timeline & milestones: Target 1 July 2026 if applicable, or plan ahead for 2028. Build internal milestones for audit completion, contract review, equipment procurement, staff training, first FO bin collection.
10. Communications & reporting: Ensure internal communication to operations, procurement and sustainability teams; for large supermarkets or food-retailers, reporting on surplus food donation is required.

Why Now Is the Time to Act

• Lead-time: With the legislation applying from 1 July 2026 (for large generators), there is no luxury of last-minute scramble. Implementing on-site equipment, collection changes and operational habit change takes time.
• Competitive advantage: Early compliance signals to customers, regulators, and stakeholders that your manufacturing site is sustainability-minded and anticipatory.
• Cost escalation risk: Landfill capacity constraints mean future disposal costs are likely to rise; diverting food organics now can lock in savings.
• Regulatory risk: Non-compliance may attract significant fines and reputational harm.
• Circular economy benefits: Capturing food organics at source helps reduce greenhouse-gas emissions (organics sent to landfill produce methane) and supports nutrient recovery, composting, biogas.

The 2026 food-organics mandate in NSW represents a watershed moment for food-manufacturing, retail and hospitality sectors. It is no longer optional to simply send mixed residual waste to landfill: food waste separation will be mandated, and operational readiness will be required.

For manufacturers, this means auditing your waste streams, installing or modifying infrastructure, engaging collection service providers, and considering on-site processing equipment such as the Mavitec Paddle Depacker to separate packaging from organics and produce a clean organic stream. By doing so, manufacturers not only comply with regulation, but also unlock operational efficiencies, cost savings, and sustainability credentials.

If you operate a food-manufacturing facility in NSW and you’re generating significant general-waste volumes today, now is the moment to get ready. Waste Initiatives has extensive experience designing and supplying Mavitec depackaging systems across Australia and New Zealand, working closely with processors to assess volumes, waste profiles and site logistics. Our team can provide an initial consultation and practical recommendations to help determine if and when in-house depackaging makes sense for your operation, and what the return on investment could look like.

To start planning your FOGO compliance roadmap or explore the Mavitec Paddle Depacker range, contact Waste Initiatives today for expert advice and a tailored solution.