Although the recession is prompting more people to put to use the childhood saying of reduce, reuse, recycle, with many companies reporting receiving larger numbers of recycled products than compared to last year, the revenue of these products has drastically dropped. This drop has left the recycling industry facing troubled times.
Linda Klinker, chair of Cans for the Community, a local non-profit organization that recycles aluminum containers and giving the proceeds to other Douglas County non-profits for funding, said that every month this year's can collection amount has surpassed last year's. Klinker said that Cans for the Community collects until it raises $1,000 and gives it to an organization. She said that this amount has become increasingly harder to reach with the drop in aluminum pricing.
"The thing that's hurting us is that aluminum dropped to 25 cents a pound from 50 cents a pound last year," Klinker said. "We have to collect 4,000 pounds of cans. Our business is steady, we're collecting more cans, but we're making less money."
Jim Tuch, owner of Home Recycling Service, a local curbside recycling company, said he was in a similar situation as Cans for the Community. Tuch said that his business had been steady, and that people were continuing a strong effort to recycle. He has heard that some recycling companies have had to resort to stopping pick-up for certain types of recyclable goods because they weren't turning enough revenue. However, Tuch said he has not had to do that yet.
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"We deal with local businesses and are able to still accept all our things," Tuch said. "Some businesses are paying a lot less but they are still accepting."
Jeff Joseph, owner of Jeff's Curbside Recycling, said he has been in the recycling business for eight years now. His business has stayed stable although he would have expected a drop-off because of people's reuse of products themselves. He said he has seen an increase in reusable grocery bags and the reuse of milk jugs over again. Joseph said that he had been able to continue picking up all the products he did in the past, and the only recyclable product he cannot pick up is styrofoam.
Joseph said that as a consumer and an advocate for reducing waste he thought it was unfortunate that recycle companies could not accept items like styrofoam. He said it would be really unfortunate if companies stopped accepting all the products they collect now, forcing all that material to go into a landfill.
Kathy Richardson, Waste Reduction and Recycling Operations Supervisor for the city of Lawrence, said that the recycling industry has taken a very sharp downturn which has caused private companies to take a hit. Richardson said that the city's waste reduction programs were funded through monthly fees and that whatever revenue was made was a bonus, but private companies relied on their revenue for things like employee salaries.
The city of Lawrence's recycling services have also seen a drop in the revenue made off of the products they collect. Richardson said that the city collects only paper products, and this year they have seen an increase in the tonnage of that material. As of the end of March this year the city has collected a total of 562.81 tons of paper products including old corrugated containers, old newspapers, office waste paper, and mixed waste paper. The prior year to date amount of tonnage is 496.43 tons. However, the year to date revenue for the paper materials is $63,019.97 compared to the current revenue of only $16,155.79, according to a recent waste reduction and recycling division report.
This drop in revenue is due to the staggering drop in price per ton made for the recyclable goods collected. In September 2008 the city received $115 per ton for corrugated cardboard. Today it receives $20 to $25 per ton for the cardboard picked up at its more than 500 business collections and community drop-off bins. That same month in 2008 the city received $85 per ton for mixed paper, an amount that has today dropped to zero.
Richardson said that as long as there is a broker who will accept products the city will continue to pick up and deliver, even if the products produce no revenue. She said, however, that the price drop put recycle companies at risk of discontinuing to accept certain products. Richardson said that the city's own warehouse space was limited so if the companies they deliver their products to stopped taking them, many of these items would end up waste.
Klinker said that recycling companies were facing a complicated situation. She said that many days she felt in over her head with Cans for the Community's efforts to collect double the cans they did last year in order to turn out the same profit, but that she would continue to pick up as many cans as possible to do her part.
Waste Reduction and Recycling Division Report for the Sustainability Advisory Board (04/08/09)

