texfash.com: The dire warning issued by the Textile Recycling Association (TRA) comes in the backdrop of the Renewcell bankruptcy and the Vereniging Herwinning Textiel (VHT) too saying that the textile sorting industry in the Netherlands is on the verge of collapse. It's pretty depressing, and disconcerting too.
Alan Wheeler: For the used clothing and textile collection sector there are a number of factors that have come together at the same time.
Ukraine was the biggest market for used clothing in Europe; now, movements of goods is being impacted by the war. Many of the global shipments of used clothing pass through the Red Sea to markets in East Africa, India, Pakistan and the sorting hub in Dubai. Shipping around the Horn of Africa delays the delivery of goods by up to four weeks and costs of freight have more than doubled.
Currencies in some African countries have more than halved in the last 12 months. Availability of hard currencies to pay for goods is an issue in some countries.
Civil unrest in a number of African countries is making it increasingly difficult to shift goods. Niger, Mali, Burkina Faso, Chad, Central African Republic and now Sudan are all listed by the UK Government as too dangerous to travel to.
Quality of clothing continues to decline, particularly since the outbreak of COVID-19. With people spending more time working from home, the consumption of casual clothing is increasing, and less smart higher priced clothing is being bought and donated for second-hand.
This squeeze in quality is being felt and met by UK/European collectors or sorters, who need to remove the recycling grades and waste to ensure that the good quality items are separated and put up for sale on the global markets and buyers from Africa and the Far East buy the goods and arrange for the shipments of these items into their countries.
The TRA statement says this clearly: "There is real fear in the industry about being unable to collect from charity shops, recycling centres and community textile banks, due to reaching capacity at processing plants." Could you give us an idea about the capacity you mention? Also, how many plants/units are currently processing the waste? Where is the number mismatch?
Alan Wheeler: There are around 40 TRA collection and sorting members, who account for over 75% of the trade by turnover in the UK. Offshoring of detailed sorting operations has been ongoing for decades driven largely by cheaper labour costs primarily in Eastern Europe and more recently the Middle East. We lost about 20% of our sorting capacity in one day last year, when a fire devasted the Savanna Rags sorting plant. In the UK, we are probably sorting around 120,000 tonnes out of the 400–450 kilo tonnes collected by the sector.
The reason why sorting and collection plants are full is because the demand in the recipient countries is very slow (see above). Without being able to sell on stock to recipient countries operators of collection and sorting plants could be forced to close their doors to receiving new stock of used textiles until they have managed to clear what they have.