The current state of charity retail recycling: Navigating an evolving market

Guest blog by Corporate Member, Dawn Dungate Consultancy

The past year has been a difficult one for charity retailers and their textile recycling partners. The challenges facing both charities and recycling merchants have evolved rapidly, forcing everyone in the industry to reassess their approach. With significant shifts in merchant operations, fluctuating market prices, and an ever-increasing volume of low-quality donations, charity retailers need to stay informed and adapt to survive in this fast-changing environment.

In the last couple of months, several key trends have emerged. Many recycling merchants have reduced their collection areas and are tightening restrictions on what they will accept, as non-reusable items lack viable recycling solutions. With no onward route for these materials and the cost to move them, merchants are avoiding textiles that cannot be reused. The current glut of material is driven by both higher volumes in the market and saturated onward routes, leaving merchants unwilling to purchase the poor-quality textiles being produced.

The impact is clear: the onward value of reusable textiles has dropped yet again, with prices falling by another 10 pence per kilogram. For charity retailers, this means that those long-expected calls from merchants about lowering prices are likely imminent. Any charity still insisting on receiving a high value for the goods they send to recycling should take note—market conditions have changed again, and it’s time to realign expectations.

The importance of supporting merchants

Given the oversupply and the low quality of textiles on the market, it is critical for charities to work collaboratively with their recycling partners. Some merchants are now having to only accept items that can be directly reused, which puts additional pressure on charities to manage unsellable stock. The market simply cannot support overinflated prices for textiles anymore, and charities that continue to hold out for high rates are risking alienating merchants at a time when finding reliable collectors is crucial.

Let’s Recycle magazine has responded to this growing concern by adjusting its price reports. The publication has now separated out its price breakdown to show the true value of goods, including the artificially inflated price of charity textiles that have been stripped of most reusable items. This transparency is vital, as it allows charities to see the real worth of what they’re offering and helps reset the market to a more sustainable level.

https://www.letsrecycle.com/prices/textiles/textiles-prices-2024/

A better solution: Working with merchants

At this stage, it’s better for charities to partner with merchants—even if they can only offer a small payment or nothing at all—than to resort to disposing of textiles in general waste. The environmental cost of landfilling textiles is significant, and the financial burden on charities could rise if they are forced to pay for waste disposal.

Instead of holding out for unrealistic returns, charity retailers should focus on building sustainable partnerships. Merchants still play an essential role in the recycling chain, and working with them, even for minimal returns, is a far better option than the costly alternative of sending textiles to landfill.

Planning for a sustainable future

As the landscape of charity retail recycling continues to shift, it is vital for charities to explore new strategies for managing waste and ensuring their operations remain ethical and sustainable. Dawn Dungate Consultancy is already working with several charities to review their business waste solutions, with a focus on long-term sustainability and ethical practices. Now is the time to rethink your approach—if you’re interested in a discussion about your charity’s waste management and how to create a more sustainable future, get in touch.

The market may be challenging, but by staying informed, adapting to change, and building strong relationships with recycling merchants, charity retailers can continue to make a positive impact on both their financial health and the environment.

13/09/2024 08:50