-July 25,2019-
Kings Waste and Recycling Authority(KWRA) based in Hanford has laid off 17 employees says their CEO Nicole Pena. The layoffs took effect at the beginning of the fiscal year July 1.For this year the employment level at the joint powers authority will be 21, she adds, as work formerly done in Kings County will be transferred to a Fresno County company.
KWRA is comprised of the Cities of Hanford, Lemoore, Corcoran and the unincorporated portion of Kings County. It was officially formed in 1989 to deal with waste disposal and State mandates for recycling.The agency has a budget of $7.5 million.
They just signed an agreement with Fresno-based Mid Valley Disposal, effective July 1, 2019 for the processing of recyclable materials for a term of four years, with an option for two additional two year terms.
“We’ve been hit real hard by the big drop in recyclable commodity prices made worse by China’s decision to no longer buy our materials” say Pena. Our revenue for materials was $1.3 million in 2008 and this year it is just $625,000”
“In 2017 the market for cardboard and other paper goods collapsed” she says. “In March 2017 we sold our mixed paper for $152 a ton and in June of this year the price was down to $2.50 a ton. Cardboard has gone from $204 a ton to just $35 a ton today. It has just killed us”
Pena says nevertheless they now expect to be in the black this fiscal year.
Despite market collapse the state is mandating diversion from landfills of recyclables from 50% today to 75% by 2020, she says. Supply will likely be made worse but perhaps convincing recyclers to build new facilities in the US to add tonnage. US domestic mills take about half the supply of mixed paper and the rest is exported – now much of it to India say sources.
The recycling crisis has hit more than Kings County. Reports say in the last five years, about 40 percent of California’s recycling centers have closed, with more than 100 closing in Los Angeles County alone.China stopped importing trash from other countries and now, many cities in the US are hurting but still trying to do the right thing.
While local agencies collect the materials – this is only the first step toward making the recycling process work says the state. Successful recycling also depends on manufacturers making products from recovered materials and, in turn, consumers purchasing products made of recycled materials.
California a is considering a bill that would require some single-use packaging to meet recycling targets, or it could not be sold in the state. Another might tack on a fee on takeout food containers in California. That could bring almost $100 million a year to California to fund recycling and composting.