"The alternative is for it to go to landfill," Fietje said.
"We offer a lower disposal cost than landfill."
After collection the waste is transferred to Living Earth's facilities in Auckland and Christchurch, where it is turned into compost and sold to farmers and home gardeners. A 40kg bag costs $12 at garden centres.
The company even outsources a portion of its bagging work to some of the country's toughest criminals.
Inmates at Auckland's Paremoremo Prison package compost in a special facility at the jail.
Fietje said Living Earth paid the Department of Corrections commercial rates for the work done by prisoners. "We're pleased to be part of a programme that has assisted the inmates there," he said.
Living Earth - 50 per cent owned by waste collection operator Transpacific Industries, with Forte Investments, a private equity firm, owning the balance - earns annual revenue of about $11.5 million.
Fietje, however, would not reveal its profits. "We're profitable, but it's a challenging business to be in."
The company struggled to collect enough raw waste materials to meet demand, but Fietje said that could change if the Auckland Council begins a kerbside organic waste collection service.
Christchurch has a kerbside organic collection service, which Living Earth collects waste from.
"In their draft plan [Auckland Council] are hoping that by 2015 they will have a kerbside organics collection in place," said Fietje.
"We think it will be great for Auckland and great for our business."
