August 16th, 2012

Chickens, eggs and mixed plastics

6 minute read

By Chris Cullen


Last month I attended a conference on mixed plastics recycling sponsored by Nestlé, the major food producer. They had reached a plateau in their efforts to increase the recycled content of their plastic packaging. The problem, as they saw it, was that there was insufficient UK infrastructure to sort and reprocess mixed plastic packaging, forcing then to rely primarily on virgin plastic.

The aim of the conference was to understand the reasons behind the lack of domestic capacity and what could be done about it. Unfortunately, while informative, the day ended with no real solution presented. To my mind, this is a clear example of a market failure and I left the conference convinced that it will take government action to clear the impasse.


Chickening out?

Mixed plastics are a major waste stream. At the conference they were broadly defined as non-bottle plastic waste, including packaging waste such as pots, tubs, trays and film. Some definitions include post-consumer plastic goods, such as the plastic components of WEEE, vehicles or toys. In 2008, over 2.1 million tonnes of plastic packaging was placed on the UK market, the vast majority of which consisted of virgin material. This figure may well have fallen due to the recession, but can be expected to increase again once economic growth returns.

The use of plastic has environmental impacts on a number of levels, including CO2 emissions resulting from its manufacture, and the disamenity resulting from landfilling or incinerating plastic waste. A closed loop economy of plastic packaging would significantly reduce these impacts. For example, using a tonne of recycled plastic packaging has a net saving of over a tonne of CO2-equivalent emissions when compared to the same amount of virgin plastic material. As the UK strives to reduce its CO2 emissions, an increase in plastics recycling could make a valuable contribution.

Two Rubber Chickens

Will the chickens  of the plastic industry lead the way? Photo by Gordon Joly, via Wikimedia Commons

Nevertheless, the recycling of plastic packaging remains at a relatively low rate (compared with, for example, paper and card), although local authorities are increasingly adding it to the list of materials that households can recycle at kerbside. But if Nestlé wants more recycled plastic, why isn’t the market able to supply it?

At its heart, this is the age old puzzle: which came first, the chicken or the egg? Manufacturers may want the chicken of domestically reprocessed mixed plastic, but reprocessors cannot attract investment in UK reprocessing capacity without the egg of guaranteed end-markets. For collectors, the opportunity remains to sell often low-grade bales of mixed plastic overseas, at prices that are anything but chicken feed, so their interest in a risky investment in UK-based reprocessing facilities remains limited. While demand from China has reduced in recent few months, plastic recyclate is now a traded commodity and the international market massively influences its availability and price.


Egging on processors

It could be argued that oil prices will take care of the problem. Virgin plastic prices rise with the cost of oil, which over the last 10 years has been on an above inflation upward trend. Demand continues to increase while reserves in established oilfields diminish and new, more difficult to drill supplies require ever larger investment to access them. But the cost of reprocessed plastic waste is already lower than producing virgin material – it hasn’t yet had the desired effect on investment, and I suspect it will take a pretty big price differential to inspire change.

There have been some examples of manufacturers teaming up directly with reprocessors to bridge the investment gap (e.g. the Joint Venture between Coca-Cola and ECO Plastics), but this has not become a widely adopted model. For anyone other than the biggest players, the level of investment involved is pretty intimidating. Were it not, the penny would have dropped in a conference like the one I attended – manufacturers would have started talking about where the reprocessing investment opportunities were for them.

Happy Saint Patrick's Day 2010, Dublin, Ireland

Proof that eggs may have come first after all? Photo by uggboy, via Wikimedia Commons


Where the market is failing and the result is environmental damage and the loss of raw materials for the economy, there is a case for government to step in and compel responsible behaviour. Recycling targets, landfill tax and fuel duty are examples of the government legislating to require or encourage a move away from environmentally damaging activities.

In this case, if all plastic packaging placed on the market in the UK was required to contain a specified percentage of recycled content, producers would have a strong incentive to ensure they could source the required recycled material. The motivation to offer guaranteed contracts would stimulate investment in the necessary collection and reprocessing infrastructure – perhaps in some cases backed by the manufacturers themselves.

Such a system would see manufacturers and importers having to prove that the packaging material of items placed on the market meets the minimum requirement for recycled content, or face financial penalty. There are of course some technical issues regarding the use of some types of recycled plastic, especially for food grade packaging; but a carefully designed scheme might allow manufacturers to balance a higher recycled content in some products with purely virgin content in others. The overall percentage of recycled content required could be increased over time, ensuring continually increasing demand for reprocessed plastic and an incentive to innovate.

This approach would have the benefit of driving investment from industry in a direct and purposeful fashion towards a clear goal. It would be more effective in this than alternatives such as placing a tax on virgin plastic material. While a tax could have an impact, like fuel duty it would be complicated by its interaction with the variable price of oil.

The introduction of targets for recycled content in packaging could initially result in an increase in the price of recycled plastic and a spike in imports; however this would most likely be short term, and swiftly counteracted by UK capacity coming on-line. Any costs would ultimately fall to the consumer; but industry may actually be able to make savings, as reprocessed plastic appears set to be lower and more predictable in price than virgin material which depends on the oil market.

However, despite the opportunity to save, I fear that only when government provides the necessary prompt will we see business do more to build a mixed plastics infrastructure in the UK. Until then we’ll be waiting in vain for much in the way of either chickens or eggs.


Chris Cullen



Chris Cullen

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Nicolay KiselevMartin ChristmasAlexPhillip WardDUNCAN OAKES Recent comment authors

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Nicolay Kiselev
Nicolay Kiselev

A very interesting idea to mix plastic ( Pet etc.) with ash from HES ( Heat Electrical Station)and produce new constructive materials( ashconcrete).

Martin Christmas

Interesting discussion and good article. We have developed a technology for economically recycling mixed waste plastics including dirty plastic film but to reach the nirvana of true recycling i.e. retaining polymer types to be recycled back into a form to replace the original virgin polymer, is a costly game and in our opinion not currently commercially viable. There are many applications where producing new compounds from mixed waste plastic and film can be used. Many consider this “downcycling” but often, once in new compound form, these materials can the be recycled on a like for like basis at this new… Read more »


I think as usual in the waste minimisation discussion, there exists a huge failure in our understanding of the best way forward, and the real issues underlying problems. Using an unsustainable resource, and then complaining about the lack of cradle to cradle solutions available means only one thing. The solution to packaging waste is to only use bio-degradable materials, that way, AD technology will have further merit for introduction, nutrients can be recycled in a natural way, emulating natural processes, and there is less energy use, having to transport and process materials, which incidentally have little value (that is why… Read more »

Phillip Ward

Chris I agree that Courtauld has not so far gone into this particular territory but there is no reason why it couldn’t. One reason why Courtauld has worked is that a relatively few powerful players at the top of the supply chain have used their market muscle to make suppliers provide particular outcomes. The investment which would be needed in new reprocessing capacity would be provided in response to a predictable demand by third parties, not by the retailers or their suppliers probably. As well as Nestle, we know several of the major retailers, including M&S and Asda would like… Read more »


Chris Hi,
Can you give me a call on 07932 640 785 or email me,

I am the commercial director at ECO Plastics Ltd and feel we can help here,

it seems common practice that brands complain that they are unable to get the appropriate recyckled material yet I have never been able to speak to anyone from Nestle and likewise they have never approached us,

I would welcome the opportunity to discuss,