Accord Annual Report 2008

This year has seen greater mechanisation and automation of the recycling process. The growing fleets of one man self loading trucks collecting commingled materials reduce both labour costs and the health and safety risks posed. For densely populated areas automated sorting is becoming the norm.

Auckland, Manukau and Christchurch councils followed Timaru’s move to fully commingled kerbside collections with the primary objectives being greater recovery rates and reduced health and safety risks to collectors. Whilst the recycling industry voiced concerns about the increased potential for reduced material quality and actual yield of recyclables, RONZ looks forward to the arguments being tested against the facts now that operations have commenced.

Secondary metal commodities enjoyed a boom which has now abated;
Plastic recycling opportunities increased on the back of a hike in the price of oil and most minerals. Several collection contract schedules have been broadened and a number of recyclers have been exporting post-consumer plastics of all grades and in all forms;
“Liquid Paper”, milk and fruit juice carton material is now collected from commercial sources for recycling as is source separated PLA which is being incorporated into secondary products.

However council contract designs continue to constrain market growth. Both councils and collectors have to balance the benefit of responding to new opportunities against the down-side risk attached to communicating schedule changes that have already been set out to the public. RONZ believes that it is to the detriment of New Zealand’s sustainability objectives if contracts are solely driven by the desire for a “least cost” service and cannot be easily adapted to seize new opportunities which become available to divert waste.

Whilst the recycling industry has benefited from higher primary commodity prices which have in turn increased demand for recovered materials, recyclers have been impacted by the parallel increase of costs in terms of oil, employment and compliance. It is important that commercial margins and profitability are restored through good practice, increased efficiency and mutually beneficial contracts.

However RONZ is encouraged by initiatives from both the private and public sector which will lead to more packaging materials collected for recycling. For example

The government’s public space recycling initiative; and

The 66% increase in glass recycling capacity when O-I Glass commissions its new furnace notwithstanding the challenge to reinvigorate the local supply chain and derive cullet of suitable quality in sufficient volume.

The introduction of degradable plastics with their potential to contaminate other ‘similar’ plastics like PET has posed questions that have not as yet been answered either locally or internationally. RONZ has maintained its position that PLA is non-recyclable in New Zealand because the infrastructure is not in place; no clear distinction (resin code) identification is approved; no sorting systems are equipped to separate and no contracts include PLA as a nominated collectible which means that collectors will not be paid to include it.

Recyclers have always been at the vanguard of change anticipating that political and public demand will facilitate growth and offer more diverse services to sustain the recycling industry. The Waste Minimisation Act will in future generate opportunities for recycling operators to benefit by providing solutions to brand owners who will be expected to deliver better design and more disposal options. RONZ anticipates that there will be a growth in Product Stewardship schemes such as the Packaging Accord.

Landfill waste levies will generate revenue for promoting waste minimisation, developing new markets and diverting product away for the landfills. This will enable recyclers to address opportunities that were previously “too hard.

In preparationRONZ has developed a new business plan which moves from the original narrow focus on packaging into a cross-sector organisation including other product types. Whilst packaging recyclers still form the backbone of the membership’s business activities, RONZ now includes organisations such as The Automotive Parts Industry Association (APIA) providing a wider knowledge base and ability to confront future challenges. Each sector is represented on the executive committee facilitating cross fertilisation of information and ideas. To further improve communications the web site has a broader reach and allows members to vote on line on issues and matters of policy.