One of AORA’s key roles, as the national voice for the organics recycling industry, is to define and promote the value our industry provides to the nation and our economy. This is why we recently commissioned a report entitled
The Economic Contribution of the Australian Organics Recycling Industry, which
was undertaken by Australian Economic Advocacy Solutions. The report shows our industry is a huge contributor, economically and environmentally, to our nation.
The Australian organics recycling industry in 2018-19 recycled 7.5 million tonnes of organic material. Over the last decade the recycled tonnage has grown by 3.4% annually, versus a population growth rate of 1.4%. Our national organic recycling rate was 51.5% - roughly 298 kilograms of recycled organic material for every Australian.
Our industry has 305 businesses operating; pays over a $366 million in wages and salaries and an additional $35 million towards superannuation; and provides an average livelihood to each employee industry of $75,540 which compares to national average weekly earnings of $64,390. The industry has a collective turnover of over $2 billion and provides $1.9 billion in benefit across its supply chain. Our industry contributes $724 million in industry value add to the Australian economy, with a further $579 million value added through flow-on demand for goods and services, and 4,070 indirect jobs provided through flow on activity.
And that’s just a snapshot of the economic benefits. On the environmental side, the greenhouse gas saving from organics recycling is approximately 3.8 million tonnes of CO2 annually. This is equivalent to planting 5.7 million trees or taking 876,663 cars off the road.
The report also models what the economic and environmental contribution would be if the current organics recycling rates were increased. For instance, if we achieved an organics recycling rate of 90% nationally, this would generate an extra $1.5 billion in sales providing an additional $1.4 billion in
supply chain opportunity with an extra $542 million in industry value add towards the Australian economy. This would deliver 3,624 extra jobs paying $274 million in livelihood to Australians. An extra 2.8 million tonnes of greenhouse gas emissions would be saved, which is equivalent to 4.2 million trees planted or 656,356 cars taken off the road each year.
These are powerful arguments showing the real value of our industry, and complement the many positives about the value of our products. We will use these figures in our upcoming national policy document, and as part of a strong strategic approach of advocacy to governments on behalf of our members.
The Economic Contribution of the Australian Organics Recycling Industry report will be emailed to all AORA members in the coming week. Please read and use it to support and grow your business.
As always, don't hesitate to call or email me if you would like to discuss any issues,
peter@aora.org.au or 0458 404 898.
Peter Olah
National Executive Officer
