The Australian Organics Recycling Association (AORA) is in the process of releasing the second edition of its Australian Organics Recycling Industry Capacity Assessment: 2022-23. This report is produced every second year, alternating with The Economic Contribution of the Australian Organics Recycling Industry report. Both reports are commissioned through the Australian Economic Advocacy Solutions (AEAS) for AORA.
Each year, the organics recycling industry is processing 77 million tonnes (or 52.3 per cent) of waste to produce valuable product for further use across the Australian economy. Diverting organic resources for recycling, reduces emissions and recovers valuable nutrients from being landfilled that improves sustainability and provides significant benefits to our communities. Organics recycling closes the loop on food and other organic wastes and ultimately returns them to production through the soil or other value-added inputs to our economy. It is an exemplar of the “circular economy” and with organics comprising almost half of our waste stream, a successful circular economy cannot exist without a successful Australian organics recycling industry.
In performing these tasks for the environment, the Australian organics recycling industry is also providing an economic benefit to everyday Australians.
Last year, AORA released The Economic Contribution of the Australian, Organics Recycling Industries, which revealed the macroeconomic contribution the industry is making – providing more than 5,000 jobs, $386 million in wages and salaries, $1.9 billion in supply chain opportunities and $781 million in industry direct value add to the Australian economy.
This current report examined the organic recycling industry’s existing and potential capacity and capability to achieve the required increase in processing and production necessary to achieve 70 per cent, 80 per cent, 90 per cent and 95 per cent recycling rates for organic materials.
Based on modelling and key findings of the AORA Organic Material Recycling Capability Survey 2023, commissioned as part of this report, only South Australia and the ACT are capable of meeting the required capacity for each of the 70 per cent, 80 per cent, 90 per cent and 95 per cent recycling rates. NSW is capable of meeting required capacity for a 90 per cent recycling rate but is not positioned to meet a 95 per cent recycling rate. Victoria can meet an 80 per cent recycling rate but not 90 per cent and 95 per cent recycling rates. All other states and territories have shortfalls for meeting required capacity these recycling rates.
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On the basis of the above, there will be a requirement to either create new capacity among existing industry participants, or promote new industry participants once existing capacity is exhausted. This will particularly be the case for organic material recycling in most rural and regional areas, where there is little or no way to deal with organic waste but to landfill it due to low capacity and infrastructure. The requirement to implement FOGO (Food Organics Garden organics) services within these rural and regional centres will also increase organic feedstock supply and further increase the need for additional ‘local’ organic recycling processing.
While the industry has confidence to grow existing markets and find new markets for its products, this is not without challenges, especially in some states/territories once higher rates of organics recycling can be achieved. Therefore, increasing market demand will be a key indicator of success for the industry as it transitions to processing and production necessary to achieve 70 per cent, 80 per cent, 90 per cent and 95 per cent recycling rates for organics material. Without viable and sustainable end-markets for the products produced by the Australian organics recycling industry (arguably a key requirement for the achievement of the circular economy principle), the industry will be constrained to grow capacity.
The full version of the AORA Australian Organics Recycling Industry Capacity Assessment: 2022-23 is available on the AORA website.