growing and sustaining markets: paper recycling brian hawkinson, af&pa 16 th annual texas...
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Growing and Sustaining Markets: Paper Recycling
Brian Hawkinson, AF&PA
16th Annual Texas Recycling & Sustainability Summit
October 14, 2013Houston, Texas
About AF&PA
Advances a sustainable pulp, paper, packaging and wood products manufacturing industry
Fact-based public policy and marketplace advocacy
AF&PA member companies make products essential for everyday life from renewable and recyclable resources
Committed to long-term success of industry, communities and environment
Better Practices Better Planet 2020 Sustainability Initiative
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Historical Paper Market Trends
U.S. Recovery of Paper & Paper-based Packaging
Overall: 65.1%
Second highest recovery rate
True environmental success story
On track to meet Better Practices Better Planet 2020 goal:
Exceed 70% recovery by 2020
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U.S. Paper Recovery Rate 1990-2012
19901991
19921993
19941995
19961997
19981999
20002001
20022003
20042005
20062007
20082009
20102011
201220%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70% Actual
Trend
Source: AF&PA
Historical Paper Market Trends
Historical Paper Market Trends
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20032004200520062007200820092010201120120
5,000
10,000
15,000
20,000
25,000
U.S. Recovered Paper Consumption by Major Grade 2003-2012
Corrugated
Newspapers
Mixed Grades
High Grade Deinking
Pulp Sub-stitutes
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Historical Paper Market Trends
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2012 Consumption of Recovered Fiber by Grade
Mixed14%
Newspapers13%
Corrugated60%
Pulp Substitutes4%
High Grade Deinking9%
2012 Consumption of Recovered Fiber by Grade
Historical Paper Market Trends
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2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
5000
10000
15000
20000
25000
U.S. Consumption of Recovered Paper by End Use 2003-2012
Paperboard
Paper
Construction Paper & Board
Other
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Historical Paper Market Trends
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2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
10000
20000
30000
40000
50000
60000
Total U.S. Recovered Paper Consumption and Exports 2003-2012
Domestic Consumption U.S. Exports
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Affect of Quality on End Markets
Recovered Paper quality is marketplace issue
Must meet production specifications:CostAvailabilityMeet performance attributes of finished product
Processing requirements vary by grade
Mills procure fiber that best meets production specifications
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“Advanced Resource Recovery” Affects
Marketplace issue
Quality
Single stream collection
Outlet for non-recyclable paper
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Policy: Extended Producer Responsibility
Shifts responsibility form municipality to brand owner
Would disrupt existing effective infrastructure
Impractical and unnecessary
Increase costs for consumers
Increase costs for marginal return
Free markets should guide paper recovery & utilization
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Policy: Mandatory Commercial Recycling
Recovery should focus on meeting end user needs
Potential for disrupting free flow of recovered paper
Use and improve existing collection infrastructure
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Policy: Export Controls
Unlikely to increase paper recovery or utilization
Strong demand from export markets increase incentives to recover more paper
Export restrictions:Would eliminate incentives to increase recovery
Would leave large amounts of municipal single-stream mixed paper by creating an oversupply for domestic manufacturers…exports are the relief valve
Would hurt municipalities and businesses across the supply chain
Likely violate international trade rules
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Policy: Increased Recycled Content Mandates
Unlikely to increase paper recovery rate
U.S. Paper Recovery and Recovered Fiber Utilization
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1992 1996 2000 2004 2008 2012 20150%
10%20%30%40%50%60%70%80%
Recovered Fiber Utilization Rate Recovery RateSource- AF&PA
estimated
“Best Practices” for Sustaining Recovered Paper Markets
Free marketplace
Collection
Utilization
System designed to meet end user requirements
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