New industry data highlights the economic value of organic waste

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New industry data highlights the economic value of organic waste

Following the recent announcement by our President that more of the hospitality sector is going to re-open, the volumes of wet organic waste that comes from restaurants is going to reach that of pre-lockdown levels. As an on-site commercial organic waste processing unit, BiobiN South Africa is asking whether commercial facilities, such as restaurants are fully capitalising on the economic value of their organic waste.

What is the estimate market value of this organic waste?

The Western Cape generated 533 745 tonnes of household organic waste and 326 935 tonnes of commercial and industrial organic waste in 2019. The combined market value of this, is estimated between R86 and R162 million, if this waste were to be beneficiated through a process, such as composting for example.

What are the market drivers to extract value from organic waste?

In response to the environmental impacts of organic waste in landfill and rapidly reducing landfill airspace, government aims to completely ban organic waste from landfill by 2027. This has increased the cost of landfilling and applied a carbon tax to organic waste in landfill. With these landfilling cost implications and an increased demand for compost, processing organic waste is quickly becoming a favourable business case.

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Reference: GreenCape 2020, Market Intelligence report.

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