Making Organics Recycling Profitable

What happens to the food your grocer doesn't sell? According to the EPA, less than 3 percent of food waste is recovered. Photo: Flickr/mjb84

San Francisco loves it. Portland is considering it. And it has been a huge success in Toronto. For the recycling business, organics is the next big thing.

An estimated 100 billion pounds of food – about 3,000 per second – is wasted each year in the U.S., making these types of programs not only viable, but crucial as well.

Matt Hedrick, executive vice president of Quest Recycling Services, says current organics programs in West Coast cities are a snapshot of the future for American residents and business owners.

But some cities are still hesitant to make the leap as making organics recycling profitable can be a tricky business.

In fact, food waste losses account for up to $100 billion per year; $30-40 billion occurring within the commercial or retail sector and $20 billion from farming and food processing, according to the U.S. EPA.

“Just like any other business, if done correctly and managed well, organics recycling can be profitable,” Hedrick says. “You have to be able to make it cost-neutral with landfilling. Many companies state that they are a green company and want to move forward, but it’s just not a reality if it is not cost-neutral.”

Last year, Quest launched an organics recycling program with one of the largest retailers in the nation, so far the program has made a substantial amount of money for the business.

“We looked outside the box and utilized vendors and transportation companies that were outside of the typical solid waste management units,” Hedrick explains. “We used companies that had a history of being able to provide route services, so they knew about transportation efficiency and route managements. The majority of your costs, after all, is transportation.”

Currently, Quest’s largest push is aerobic digestion, a biological process in which biodegradable organic matters are broken-down by bacteria into biogas, which consists of methane, carbon dioxide and other trace amount of gases. The biogas can be used to generate heat and electricity.

“These digestors can take a lot of materials, and you don’t have to worry about market saturation because their capacity is limited,” Hedrick explains. “The good thing about these is that the byproduct creates a cake, which is high in nutrients. That cake be composted, bagged and sold in retail stores. That’s a 360-degree turn, creating electricity and lessening our dependency on oil.”

While it’s a big investment, Hedrick says Quest is confident and believes that more businesses across the country will soon see the process as scalable and profitable.

“In the western part of the country, state regulators are so proactive with this type of program, but other states are trying to restrict the reuse because they simply don’t understand it, but it’s fully supported by the EPA,” he says. “It’s the No. 1 waste stream they want to remove from landfill.”

In addition to its organics recycling endeavors, Quest’s Sustainable Selections program has also taken off. Launched last year, the venture has created a liaison between retailers and zoos to handle wasted meat. While the expired meat is not suitable for human consumption, it is still safe for animals. Grocers get rid of their “waste” while zoos and rescues save thousands.

Organizations (such as zoos and animal caretakers) pay a low monthly membership fee. Sustainable Selections matches the member with a local retailer based on the amount of meat needed on a weekly basis.

Read more
San Fran’s Mandatory Composting a Hit With Residents
Expanding Composting in Portland Comes With a Stench
How to Compost Outside the Home

As of June 17th 2011 we have upgraded our comment system to use Facebook comments. The below comments are closed and are listed for historical purposes.

3 Archived Comments

  1. Joseph Tay

    posted on May 12th, 2010 at 7:33 pm

    Hi Amanda,

    I just wanted to get confirmation if it is aerobic or anaerobic composting you are referring to in this report. The reason being is that from what I understand, aerobic composting generally generates excess nitrogen that comes out as ammonia (generally regarded as a troublesome waste gas for some reason). While on the other hand, it is anaerobic composting/digestion is the one that generates methane for biogas production.

    God bless,
    Joseph Tay

  2. walter

    posted on June 2nd, 2010 at 1:19 pm

    Isn’t it funny that the areas with large populations, i.e., the coasts are so proud to be considering food waste composting when a small firm in Albuquerque, NM has been actively collecting and composting food waste for 13 years.
    When “the majority of your costs, after all, is transportation,” it is also funny that
    “one of the largest retailers in the nation” contracts to haul their organic waste across state lines, rather than compost it at that facility which is not more than 7 miles away.

  3. Matt

    posted on June 13th, 2010 at 2:35 pm

    Walter,

    “One of the largest retailers in the nation” utilizes the organics for animal food. Animal food is third on the EPA reuse scale behind Reduce & Feeding Humans – while composting sits right above land filling. If a better use of the material can be identified at the same price the small firm in Alburquerque charges, why wouldn’t you choose what is best?

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