{"id":12818,"date":"2016-07-25T12:42:06","date_gmt":"2016-07-25T16:42:06","guid":{"rendered":"https:\/\/wasteadvantagemag.com\/?p=12818"},"modified":"2016-07-25T12:42:06","modified_gmt":"2016-07-25T16:42:06","slug":"low-commodity-values-subsidies-threaten-recycling-industry","status":"publish","type":"post","link":"https:\/\/wasteadvantagemag.com\/low-commodity-values-subsidies-threaten-recycling-industry\/","title":{"rendered":"Low Commodity Values, Subsidies Threaten Recycling Industry"},"content":{"rendered":"
Record low commodity values, combined with lower state subsidies are threatening the local recycling business, according to industry experts.<\/p>\n
The combination has already forced one rePlanet, doing business as Nexcycle, to close two recycling centers in Orcutt recently, and more closures are possible.<\/p>\n
\u201cWe\u2019re afraid that those are not the last centers to close,\u201d said Teresa Bui, legislative policy analyst for Californians Against Waste. \u201cIf we don\u2019t do anything soon, we might hear about more closures.\u201d<\/p>\n
And the closures are occurring across the state.<\/p>\n
So far, about 15.6 percent of the total statewide industry has closed shop, according to Mark Oldfield, director of communications at California’s Department of Resources Recycling and Recovery, known as CalRecycle.<\/p>\n
While the industry has had a historical operational figure of around 2,100, only about 1,773 recycling centers remain across the state.<\/p>\n
The problem, according to Oldfield, has to do with declining value of commodities like plastic, which has been hit hard by falling oil prices.<\/p>\n
The lower costs mean that new plastic is cheaper and that recycling centers are making less money from the sale of the commodities.<\/p>\n
Additionally, the state subsidies intended to make up the difference aren\u2019t providing enough support, hence the uncertain market conditions.<\/p>\n
Shannon Larrabee, operations manager for Larrabee Recycling, off South Blosser Road in Santa Maria, reiterated some of those concerns.<\/p>\n
\u201cThe scrap value is in the toilet, so it\u2019s financially becoming more and more difficult, especially for the small operators, to stay in business,\u201d Larrabee said.<\/p>\n
While Larrabee Recycling has no plans to close, discussions have occurred in the past.<\/p>\n
\u201cOne thing that our family, you know, certainly struggles with is what a huge hit that would be on this community to pull an established recycling center like ours out of commission,\u201d Larrabee said. \u201cBut it\u2019s also got to be financially feasible and the state can certainly do a better job at working with us.\u201d<\/p>\n