Why burn agricultural waste, when it is a perfect raw material for paper? With this in mind, Peter van Rosmalen set out to find a way to renew the paper industry. Over 16,500 billion kilos of crops are grown each year to feed 7 billion people, but only 15 to 20 percent of these are used as food. Most of it is agricultural waste that is now often burned. Sometimes this is done in power plants, but often just by farmers on the land. The challenging early years are over; PaperWise is firmly on the map. Now it's time for the next phase: a European factory. Peter van Rosmalen talks about his sales strategy, his big drive to make a difference and about daring to take a big step, from 1 to 100 million.
His 6-year-old granddaughter asked him, "Grandpa, if you make up everything, what will be left for us?" Peter van Rosmalen, then 55 years old, decided to cut the knot and start his own business. Previous employers in the packaging industry also wanted to become more sustainable, but he was not moving fast enough. The paper revolution had to be set in motion, no matter what. He started from home and put everything he had on the line. "We sold our house to have working capital. The bank also demanded that I personally stand as guarantor. Fine, I went for it!"
Critical choice
Van Rosmalen started looking for a way to produce high-quality paper from agricultural waste in a socially responsible way. He didn't find it in Europe, but he did in Asia and South America. "That has everything to do with how the market now operates. Paper mills in Europe typically use trees or waste paper as raw material. Many paper manufacturers also own forestry companies, which makes it less interesting for them to use a raw material other than trees. In Asia and South America it is different, trees are scarcer and there is a lot of agricultural waste that would otherwise just be burned. "He managed to find some companies that had experience with processing agricultural waste for the local market. Still, he was careful; quality had to meet European standards and conditions for employees had to be good. "The PaperWise factories are of great significance for the local communities. Investments are made in training, infrastructure and healthcare, and the manufacturing process is focused on safety, zero waste and preservation of ecology. This is the only way we want to partner with producers."
Publicity and awards
The 'Wise with Waste' philosophy of PaperWise generated a lot of publicity: more than 43 media outlets in 8 European countries gave PaperWise attention through radio, newspapers, trade magazines and online. The company was nominated 4 times for innovation and sustainability awards and won 3 prizes, including The Product Enlightenmentz of the Year award from Industrielinqs and The Next Entrepreneur award from Rabobank and MKB Nederland. All this attention proved to be a great door opener to leading companies with an eye for sustainability. Companies like Lufthansa, Eosta, Heineken and Tony Chocolonely are very consciously choosing PaperWise and want to show the outside world their attention to sustainability. They are proud to mention our logo and story. And that, in turn, helps to attract the attention of other companies and to convince them to make the switch as well. Even if it is a bit more expensive than regular paper, the good story and the positive impact we make is worth it to them."
"The positive impact makes up for the higher price".
Social media on top
Pr and social media is therefore an important part of PaperWise's marketing strategy. "Last year we had to choose: do we hire a salesperson or someone who is going to build our social media? I realized: if you use social media well, the impact is greater than a salesperson who personally visits the doors. Companies increasingly know how to find us and choose to become clients on their own initiative, precisely because of the good story. And that choice has turned out to be a very good one in this time of corona. Many trade fairs are cancelled and I now mainly have online meetings with potential clients. That makes online visibility even more important. The company now supplies sustainable paper and cardboard to many printing and cardboard companies in a total of 19 countries. Coffee cups, packaging of, for example, fruit and other foodstuffs, printing and copying paper and all kinds of brochures: PaperWise is getting better at bringing about the paper revolution.
Producing in Europe
But Van Rosmalen believes that producing paper from agricultural residue is also feasible in Europe. "That's the next step: we will have to start doing that ourselves. You can't just use an existing factory. If you want to work with a different raw material, you need a different process. That requires a lot of research. We are taking 2 years to develop the right process and create the right conditions for a factory. On the one hand, that is continuous and certain supply of raw material and certainty of purchase of the paper on the other hand." Estimated cost of the plant: about 100 million euros. He doesn't even blink when he tells it. "Yes, that's a huge step. We have a turnover of 1 million now, so we have to grow significantly. But you know: with less than 2% of all the available agricultural waste, you can meet the entire paper demand in Europe, while it is now mainly burned! When you think about that, you know that we owe it to ourselves, our children and our grandchildren to think about the future. We should not be stuck in the status quo."
By the way, it doesn't mean that farmers will soon be able to supply agricultural waste to PaperWise without limit. "First of all, the waste must contain a relatively large amount of cellulose, such as hemp, straw from grain or hops. The exact composition of the waste has to be researched and tested with the help of consultants from the former BioTreat Center and the Horticultural Residue Streams Platform. Exactly what kind of residual streams we will use will become clear from that research. What is certain is that we need a lot of the same product, which is best for consistently high quality."
"With less than 2% of all the available agricultural waste, you can meet the entire paper demand in Europe."
Taking action for change
Van Rosmalen is not an entrepreneur who starts with the euros. "I didn't start PaperWise for the money. I'm all about the change! The children of the people working in the factory can go to school because we have that sustainable paper made. Since our founding, together with all our customers, we have already given over 10.7 million kilos of agricultural waste a second life. In doing so, we have saved 16,100,000 kg of CO₂ by not burning agricultural waste. This is equivalent to the emissions of 10,250 cars driving for a year. By transforming agricultural waste into high-quality paper and cardboard, we have collectively left 31,800 trees standing and together prevented 30.5 km² of deforestation. That is a city the size of Wageningen, or 4300 soccer fields! That's what it's all about and that makes me very proud!
Entrepreneurial tips from Peter van Rosmalen
.1: Stand for something
"Some goals may be crazy, but if you have enough passion, they are achievable. What do you believe in, what do you want to change? If you really stand for something and have a good story, you can change the world. Just preferably do it a little earlier than I did and don't start until you're 55e!"
2: Dare to set boundaries
"I was initially too gullible when customers mentioned high volumes. Sometimes I would start production in advance. But then I was left with stock if they started off cautiously and only wanted to buy 20 percent of the forecast. Now I know that I have to make firmer agreements. I am also strict when it comes to payment terms. A payment term of 90 days has nothing to do with sustainability and good entrepreneurship."
3: Consider who can sell your business well
"In our case, the middleman appeared to have trouble selling our paper. The middlemen are used to selling on price and not on the story of sustainability and corporate social responsibility. So they couldn't get PaperWise sold, because we were more expensive compared to regular paper. That's why we started addressing the end customers, brand owners, directly."
4: Tell your story through all the channels you have
Social media, press, networking: keep relentlessly sending your story out into the world. In today's world that story can spread at lightning speed and you will reach many more people than you might think. So don't think too small: there's a world out there for you.