Not Good News for RecyclingPosted: July 6, 2015
A recent article in The Guardian reflects what we have been feeling for reasons of our own within our business. We are not in the first tier of the recycling process. We have been there in the past – actually bringing in bales of minimally sorted plastic bottles and paying our employees to carefully remove the resins that shouldn’t be co-mingled with the #2 HDPE resin that is our predominant feedstock (we can tolerate some #4 LDPE and #5 PP because our process is “forgiving” enough to handle that much variety). At that time, we actually were paying them more in “bounties” than their base rate without the inducement.
It has seemed to us that recycling in general, while happily still continuing to be utilized in many communities (ours included) to reduce transfer costs and the space required in limited landfills, is no longer given very much “public” attention. This has psychological impacts on the individuals who are creating waste. They may feel that their personal effort isn’t really significant or that the “problem” has already been solved without their input. Neither of these perspectives is valid. Waste and the accumulation of it are still an issue we should all be concerned about. Recently the Environmental Protection Agency announced that as of 2013 overall recycling rates were 34.3% of the waste stream and had contracted for the second year in a row.
The article notes – “Falling oil prices, a strong US dollar and a weakened Chinese economy are combining to make the global business of recycling less profitable than ever.” The article goes on to say – “Once a profitable business for cities and private employers alike, recycling in recent years has become a money-sucking enterprise.” This is not good news after so much effort has gone into changing a lot of individual behaviors with curbside programs. In the world as it exists today most enterprises that consistently lose money do eventually fail. David Steiner, Waste Management’s chief executive, stated this directly – “We want to help our customers, but we are a for-profit business. We won’t stay in the industry if we can’t make a profit”. According to Waste Management, and confirmed by other recyclers as well, “more than 2,000 municipalities nationwide are paying to dispose of their recyclables instead of the other way around.”
And it isn’t only municipalities struggling, Waste Management’s recycling division posted a loss of nearly $16 million in the first quarter of the year. The company has shut nearly one in 10 of its biggest recycling facilities. According to Steiner, “An even larger percentage of its plants may go dark in the next 12 months”. Even though environmentalists and conservation advocates question whether the industry is overstating a cyclical slump, a perfect storm of falling oil prices, a strong US dollar and a weakened economy in China have conspired to devastate prices for American recyclables worldwide. Chinese companies have also become pickier about the quality of American materials they purchase.
I remember when we had to do a lot of the work of recycling ourselves BEFORE we ever took our recyclables to the collection center. Everything needed to be sorted and I always made sure it was clean as well. Although our local center does still ask for some pre-sorting by citizens bringing in their recyclables, many centers and especially curbside programs don’t require any sorting at all (but I guarantee you that to make use of it all – it has to be sorted – before it is further processed). We pay a “bag fee” on transfer station non-recyclable trash. Maybe the collection centers for recyclables need to start charging a much lower fee for those items – perhaps half of what the landfilled materials cost to dispose of.
Contamination of the recyclable stream has always been a problem. Glass is a problem in automated sorting facilities because it often breaks and ends up rendering valuable bales of paper or plastic unsaleable. And the reality is – uninformed and untrained curbside program users often contaminate their recyclables with garbage – even if some of the items were placed there with optimistic good intentions that they had a residual value.
And there is an interesting market impact due to changes in the packaging of consumer products. Patty Moore, head of California-based Moore Recycling Associates, notes that “. . . what’s different now is that the material mix has changed”. The once-profitable old newspapers, thick plastic bottles and aluminium cans that could be easily baled and reused make up a far lower percentage of the recyclable stream, replaced by lighter weight alternatives like vacuum-packed bags for coffee and foods like tuna fish. Tin cans and plastic water bottles have become thinner. Many items such as soup and other liquids come in aseptic cartons now. Even the plastic milk jugs we depend on for Yemm & Hart’s Origins product are frequently replaced with that type of packaging.
And in the midst of all the bad news, there is this bright spot – an increase in cardboard turned in for recycling. More people are buying items through online merchants (we certainly do as stores are a long way from home and time consuming to shop at). Because of this trend, cardboard has doubled its volume in the recyclable stream. Also businesses that eventually process sorted plastic bottles continue growing and a processor that feeds an Indiana paper mill churning out 100% recycled cardboard has just recently added capacity with two new facilities coming on line.
Everyone should care about these issues. Anyone can make a more diligent effort to do a good job of recycling ONLY materials that can be utilized and keeping their garbage contamination out of the recyclables system. Like droughts or floods, the current economic situation could change at any time – oil prices could rise (though I’m not wishing for that out of terrible self-interest). The US dollar could weaken and I’m not proficient enough at economics to say whether that would be a good or bad thing for most of us. And one could put some hope in China’s tendency to plan far far ahead for the common good of their own people. Unfortunately, the United States of America does not tend to look beyond the next fickle election cycle and our politicians are unlikely to ever care very much about “trash”.
The danger is that we could lose the momentum built up over several decades with a short-term, profit-driven/loss-adverse mindset or even worse – apathy. The reality is that money still makes the world go round . . . environmentally we would be better off if quality of life and human welfare and protecting the world that sustains us were the values that determined decisions about what should be done and why. I don’t see such a sea change in perspective coming any time soon, not even in my lifetime, and yet I never say never and I don’t give up hope easily.
~ Information Resources
Why the US recycling industry is feeling down in the dumps by Aaron C Davis posted on 06/27/15 and reprinted in The Guardian online from The Washington Post – http://www.theguardian.com/environment/2015/jun/27/recycling-unprofitable-oil-china-dollar
Aseptic packaging details at “FAQs” for Pacific Foods – http://www.pacificfoods.com/about-pages/faqs
Blog author ~ Deborah Hart Yemm is co-founder of
Yemm & Hart, a green materials producer