Q&A
Strategies to improve recycling profitability in New York City
1:19:00
·
118 sec
Council Member Abreu asks about ways to make recycling more profitable, given the low revenue ($15 per ton) compared to the high cost ($779 per ton). Assistant Commissioner Jennifer McDonnell explains strategies to increase profitability.
- Diverting more paper is the best way to increase recycling revenue, with higher payments for increased paper tonnage
- Metal, glass, and plastic recycling revenue is based on fluctuating market commodity indices
- Increasing overall tonnage of diverted materials can help improve profitability
- City support for increased profitability mainly involves outreach and education to improve recycling rates
Shaun Abreu
1:19:00
I'm gonna turn it over now to to plastics.
1:19:06
And these are, I believe, will be my last set of questions.
1:19:11
DSNY puts recycling revenue at only $15 per ton and recycling cost at 779 per ton.
1:19:20
What are some things DSNY would like to see to make recycling more profitable?
1:19:25
And how can the city support increased profitability?
Jennifer McDonnell
1:19:34
Diversion of paper is by far the best way to increase our revenue.
1:19:38
We actually have thresholds in some of our contracts, the more tons of paper.
1:19:42
We divert per month, the higher payment we get from our vendors, so focusing on really capturing as much paper as possible.
1:19:49
And then on the metal glass and plastic side, it's based on market commodity indices that fluctuate.
1:19:56
So the department has no control over those market prices, but continuing to divert material can help by having more tonnage run through that system, and every ton has a credit based on that market value.
Shaun Abreu
1:20:12
What what does the city support look like for that increased profitability?
Joshua Goodman
1:20:19
Yeah.
1:20:19
I I think it it comes back to outreach and education always.
1:20:23
Right?
1:20:23
I mean, we For what it's worth when you're talking about the market forces involved in diversion, it's it's good to remember that those of us who are sort of really interested in this issue probably read a lot of the national press coverage about like, oh, it says markets collapse, whatever.
1:20:38
I always think it's important to remind people that New York City is protected by long term contracts.
1:20:42
So we were not hit by the same sort of huge market changes in 2017 2018 that happened nationally.
1:20:49
That said, you know, we would love to see the costs come down and the revenue go up.
1:20:54
So that's one of many reasons why we push people to follow-up.
