An upheaval in the markets for recyclable paper and cardboard will cost Whanganui District Council if it wishes to maintain a recycling service, waste minimisation chairman Rob Vinsen says.
Late last year China, which had taken 50 per cent of world paper and cardboard, stopped accepting it. The only overseas buyer now is India, and the price per tonne has dropped from $500 to $50- $60.
All paper and cardboard for recycling forms a single pool at New Zealand wharves. The cost of getting it there is around $200 a tonne.
This means in 2020 Whanganui's 1000 tonnes of bundled paper and cardboard will cost $112,000 to recycle, instead of earning $43,000.
"We just can't sustain that," Vinsen said.