Application of material flow cost accounting to achieve environmental sustainability in small-scale soybean oil production in South Africa

Purpose: This study investigates the effectiveness of Material Flow Cost Accounting (MFCA) as a tool for enhancing resource efficiency and environmental sustainability in small-scale soybean oil production in South Africa. The main objective is to analyze the impact of MFCA on waste reduction and e...

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Bibliographic Details
Main Authors: Ayotola Joel, Mishelle Doorasamy, Wilfred Akinola
Format: Article
Language:English
Published: Centre of Sociological Research 2025-06-01
Series:Economics, Management and Sustainability
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Online Access:https://jems.sciview.net/index.php/jems/article/view/221
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Summary:Purpose: This study investigates the effectiveness of Material Flow Cost Accounting (MFCA) as a tool for enhancing resource efficiency and environmental sustainability in small-scale soybean oil production in South Africa. The main objective is to analyze the impact of MFCA on waste reduction and economic performance within the production process. Methodology: A case study approach was adopted, focusing on the implementation of ISO 14051 in a small-scale soybean oil production setting. Data were collected through direct observation over three months, capturing cost information, inputs, and outputs across the various production stages. Results: The findings indicate that a significant portion of waste generated during soybean oil production can be reused as by-products in other processes. The application of MFCA led to notable cost savings and promoted environmental sustainability. Specifically, the technique resulted in total savings of 6,083.05 Rands, with 196.97 Rands saved in dehulling, 4,609.08 Rands in drying, 350 Rands in oil extraction, and 927 Rands in filtration. The study also highlights the potential for revenue generation and improved resource utilization through waste minimization and reuse. Theoretical Contribution: This research contributes to the literature by demonstrating the value of MFCA in agri-food production, emphasizing its role in reducing waste, costs, and energy use while supporting sustainability objectives. Practical Implications: The results provide actionable recommendations for industry practitioners, policymakers, and scholars, advocating for the adoption of MFCA in soybean oil and similar production processes to achieve sustainable development goals. Sustainable Development Goals (SDGs): SDG 2: Zero Hunger; SDG 6: Clean Water and Sanitation; SDG 7: Affordable and Clean Energy; SDG 9: Industry, Innovation and Infrastructure; SDG 12: Responsible Consumption and Production; SDG 13: Climate Action; SDG 15: Life on Land; SDG 17: Partnerships for the Goals
ISSN:2520-6303