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Market Status Report: Urban Compost and Mulch |
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This paper is also available in Microsoft Word
format.Table of ContentsI. Introduction II. Supply III. Demand V. Strategies to Overcome Barriers VII. Summary
I. IntroductionOver 40 percent of California's waste stream is compostable organic material. Generation figures for the waste stream in 1990 show 14.6 percent was yard waste, 8.5 percent was wood waste, 7.1 percent was food waste, and 5.7 percent was "other" paper (potentially compostable), with small percentages of other compostable organic materials. Sewage sludge (biosolids), used for co-compost and land application, represents .5 percent of the waste stream as reported to the California Integrated Waste Management Board (CIWMB). Wood and paper are addressed separately in other appendices. The organic fraction of the waste stream has great potential for composting and must be diverted if we are to meet the 50 percent diversion goal by the year 2000. Composting may represent the greatest potential for turning compostable materials into value-added products. Besides composting, organic materials can be made into many beneficial products including mulch and additives for on-farm composting, animal feed, animal bedding, biofuel, and landfill cover. Although paper is not addressed in this report, composting could be appropriate for some paper, such as waxed or food-contaminated paper, and for paper mill sludge, which cannot otherwise be recycled into higher value products. Many jurisdictions recognize the need for programs to reduce and divert urban organics. Backyard composting programs, target yard trimmings to keep them out of the waste stream. Curbside, drop-off, and seasonal collection of yard trimmings are becoming commonplace throughout California. There are currently over 170 curbside programs. A separate collection generally results in cleaner material with less contamination from foreign matter. Supermarket produce culls and restaurant and institutional food residues can be collected separately for composting. More composting facilities and operations are expected to be permitted now that the composting facility regulations have gone into effect. Farmers and growers in large-scale agriculture represent the largest market for urban compost use. California has 30 million acres of farmland with almost 8 million acres in harvested crops. Although organic and sustainable farming methods promote compost use, most farmers and growers have little firsthand experience using compost, and agricultural markets remain largely undeveloped. Awareness of sustainable farming practices continues to grow, spurred on by the need to:
Nursery owners and landscapers represent markets for compost products with potential high use. Landscapers are beginning to use more urban compost materials and make compost from materials generated in their businesses. Landscapers have endorsed waste prevention measures such as grasscycling and on-site composting. Some horticultural nursery operations use compost as a cost-effective soil amendment. Niche markets for urban compost products that need further development include erosion control and wetland restoration. Compost use provides many benefits including better soil aeration and increased soil tilth. Compost provides slow release of nutrients, and facilitates water conservation by improving the water holding capacity of soil. Compost and mulch are useful for weed abatement and erosion control. Enriching soil with organic matter increases the diversity of microbial activity. A growing volume of research indicates that compost and mulch amended soil may encourage disease resistance in specific situations. DefinitionsThe organic fraction of the waste stream is primarily yard and garden trimmings from residential and commercial properties, food residues, wood waste, agricultural crop residues, and manure. The following are definitions of terms used within this appendix. Clean green material is green material that is processed by a permitted solid waste or composting facility to reduce contamination to the greatest extent possible (Public Resource Code (PRC), Title 14, Section 17868.4). Tree and landscape trimmings that have never been combined with waste materials are considered clean green material. Fresh green mulch is uncomposted clean green material, primarily composed of residential yard trimmings. Minimal processing, such as screening to remove contaminants or grinding to reduce size, may prepare the material for use as mulch or compost feedstock. Green material is any plant material that is either separated at the point of generation or separated at a centralized processing facility that employs methods to minimize contamination. Green material includes yard trimmings, plant materials from the food processing industry, manure, untreated wood wastes, paper products, and natural fiber products. U.S. Environmental Protection Agency (EPA) and State metal concentration limit requirements must be met. Other Paper is a term used in the data collection process to indicate paper residues suitable for composting. Sewage sludge (biosolids) is material generated during the treatment of domestic sewage in a treatment plant. Yard waste or yard trimmings refers to leaves, grass clippings, and garden prunings. Current Board Market Development ProgramsAgricultural Compost and Mulch Demonstrations Five agricultural compost and mulch demonstrations were initiated by the California Integrated Waste Management Board during 1994. They show urban compost product use on a variety of commercial crops in major agricultural regions of California. Farmers, nurserymen, farm advisors, local government representatives, and compost producers are working together on cooperative teams to document the benefits of using urban compost products in crop production. Scheduled to be completed in 1997, the preliminary findings indicate that compost use can be advantageous. Most crops are doing at least as well with compost as with other soil amendments. Cooperative team members have also observed specific disease suppression on peaches and onions in the randomized plots receiving compost applications. Compost Product Guidelines The one-year effort to develop compost product guidelines brought together potential urban compost users, farm advisors, and compost producers on a Compost Agricultural Steering Committee. The guidelines encourage dialog with producers about compost, the ingredients, and the process that creates the product. The guidelines can provide a valuable source of information for the compost buyer. Particle size, organic matter content, salinity, and pH are among the list of parameters to be disclosed. The Board is encouraging the compost and agricultural industries to work together to further refine and implement the guidelines. The California Compost Quality Council (CCQC), a broad-based coalition representing compost producers, compost users, and State government, is beginning to implement the guidelines. Outreach to Agriculture The CIWMB's compost outreach to agriculture, conducted in cooperation with U.S. EPA, is focused on presenting informational exhibits and workshops at established farm shows throughout the State. The CIWMB and EPA also sponsored a variety of conferences to bring compost information and education directly to agriculture, and to the commercial nursery and landscape industries. CIWMB is continuing this outreach program, including outreach at farm equipment expositions and the trade show at the California Farm Bureau Federation annual conference. II. SupplyCurrent Residential Waste Stream SupplyCurrent statewide figures on the amount of yard trimmings and food residues in the waste stream are not available. (See table on following page for 1990 figures.) While yard waste averaged less than 15 percent of the statewide waste stream reported in 1990, many cities claim yard trimmings represent up to 40 percent of the waste generated. More tons of urban organics, including yard trimmings, food residues, and "other" paper, are generated today than in 1990 due to population increase. The drought of 1990 may have contributed to under-reporting of yard waste. Over 2.5 million tons of compost are currently being produced by the 65 compost distributors on CIWMB's "compost and mulch sources list." Table of Estimated Average 1990 California Waste Stream Composition: Organics*
*Revised October 17, 1995 Primary Factors Affecting Supply CollectionMore organic materials are being diverted as the infrastructure for collection continues to be developed. Some cities have traditionally collected yard trimmings in the spring and in the autumn. Many jurisdictions have separate collections year-round for yard trimmings, increasing the available supply of source-separated compostables. The level of contamination, (i.e. mixing of source-separated organics with undesirable materials), varies widely. Factors influencing contaminants include the amount of education directed toward the person who takes the material to the curb or drop-off site as well as the collection methods, whether in separate bins or bags, or picked up from the street. Food processing residues and supermarket produce culls are increasingly used in composting and vermiculture operations, both for the nutrients and moisture content. Biocycle Journal reported that there are several food composting facilities in California. U.S. EPA reports that nationally, food composting reached measurable proportions for the first time in 1994. Regulatory Atmosphere The regulatory environment affects decisions to establish or expand a composting business. Some potential composters began mulching operations while awaiting completion of the composting facility regulations. Land spreading or on-farm composting was encouraged where the supply of collected urban green material exceeded the capacity of local permitted composting facilities. Since less processing is required, the selling price of green mulch, which is minimally processed, is lower than for compost. Several other agencies regulate composting facilities and operations. Regional Air Quality Control Boards may regulate emissions from composting equipment. They also restrict burning. Thus, agricultural residues are becoming more available for on-farm composting. The Water Quality Control Board completed streamlined water discharge requirements that apply to most composting facilities. Markets A few years ago, biofuel was the highest-dollar-value market for wood, woody yard trimmings, and agricultural wastes, bringing as much as $40 to $60 per ton. Many biomass and cogeneration plants have closed as the "standard offer" contracts resulting from the fuel crisis of the late seventies came to an end, resulting in increased amounts of biomass available for mulch and composting. Forthcoming Public Utilities Commission decisions on competitive pricing for energy will impact the remaining biomass and cogeneration operations, especially if a special provisions are made to maintain renewable energy facilities. See Market Status Report: Urban Wood for a more complete assessment and impacts of biomass fuel. Projected SupplyThe amount of organic waste is expected to increase with population growth. U.S. EPA projects lower per capita generation of yard waste for 2000, as yard trimmings used for backyard composting are not included in U.S. EPA waste generation figures. Backyard composting is considered source reduction, thus some yard trimmings are not counted in national generation figures. California also includes yard trimmings as source reduction, but they are counted for generation. Many cities and counties offer popular grasscycling and backyard composting programs which keep yard waste out of landfills by encouraging on going participation from an estimated 3 percent per year of the population. Implementing backyard composting programs, food waste reduction by restaurants, and other waste prevention activities will lessen the supply of urban organics that must be diverted from landfills. Aggressively promoting on-farm and institutional composting, will help achieve the waste reduction projected by U.S. EPA and CIWMB. As cities and counties continue to establish organic material collection programs, more feedstock will be available for diversion of composting operations and facilities. By Department of Conservation Division of Recycling count yard trimmings are included in over 170 curbside collection programs. Large scale mixed municipal solid waste (MSW) composting has not developed in California, although in 1990 several jurisdictions reported planning MSW composting facilities. According to an article in the March 1996 issue of MSW Management MSW plants in other parts of the country have closed, primarily because of odor problems and lack of capital available to solve those problems. In the future information may be available about how many active and planned projects are in California. III. DemandCurrent DemandThe Board hopes to divert ten million tons per year of organic material and to create additional markets for five to six million tons of compost per year. Composting reduces the volume of feedstock by one third to one half, so one ton of organic material would make approximately one half ton of compost. Current demand is estimated at around three million tons of compost and mulch. Successful composters claim to sell all the compost products they produce. In fact the demand for compost from established producers may be greater than the available supply, so some established producers are working to increase their supply of feedstock and permitted capacty. Uncomposted green material has gained a foothold in the marketplace along with woody mulch. The demand is from farmers and composters who use fresh green as mulch, and from composters as feedstock in compost production. Green mulch or ground yard trimmings are cheaper to produce than mature compost, requiring only minimal processing through a permitted solid waste facility. Factors Affecting DemandMarketing and "Brand" Names As in any business, a compost producer must reliably produce a consistent product, and have sufficient quantity available when needed. Consistent product quality, customer service, and successful marketing techniques are key ingredients to maintaining demand for products. Government-operated composting facilities must view composting as more than a waste management technique. They must adopt marketing techniques to sell products. All compost is not the same. Products or "brand names" from recognized producers command higher prices. Currently, the term "compost" is used to sell all manner of soil amendment products, from uncomposted forest product fines to fully mature compost, and everything in between. A recognizable symbol of quality can boost markets. Transportation and Application Costs The cost of using compost includes the product cost, transportation cost to deliver the material, and the cost to apply the product. Costs to spread the product may remain be relatively high until equipment and application methods are refined with increased usage. Compost sells at a fairly low price, ($5-$20/cu.yd. or $10-$40/ton), compared to the products it competes with, particularly manure and chemical fertilizers. Transportation costs can exceed the cost of the product when shipping a great distance. Costs at the front end must be compared to benefits (e.g. crop yield or increased organic matter) at the back end. Comparing the short term benefits of synthetic inputs to the long term benefits of compost, (improved water-holding capacity or improved tilth), may prove difficult. Projected DemandAgriculture Few conventional farmers or growers currently use compost or other organic methods on the 30 million acres of California farmland. The largely untapped market is there, waiting to be developed. A few compost marketing pundits have projected that, within three years, the demand for compost and green mulch could outstrip the supply at current prices. Rapid changes seem to be taking place in attitude towards organic soil amendments and understanding of compost's benefits. While only about one percent of the farmers in California are certified organic, many conventional farmers are learning about sustainable farming methods, which encourage compost and other organic inputs while reducing the amount of agrichemicals used. Farmers and growers will adopt some alternative methods, including compost use, especially when costs are affordable and there is no decrease in crop yield. This trend in use of urban organics is expected to grow significantly, increasing markets for urban green materials. Landscaping and Horticulture Landscaping contractors are adopting green industry guidelines and will no doubt increase their use of compost products from urban sources. Since appearance is important, landscapers demand products that look good. Several horticultural nurseries use compost products and work with local compost providers to develop products suited to their needs. If this is any indication, the outlook is very good for increased demand in both the nursery and the landscape industries. Alternative Daily Cover (ADC) ADC is material used in place of the usual soil cover on the working face of a landfill each day to avoid odor and flies. A one-year approved demonstration trial is required before alternative materials, such as yard trimmings, are approved for use. ADC is a viable market for green material in California, particularly where no native soils are available at a landfill site. On February 23, 1996, the California State Supreme Court ruled against counting yard trimmings used as alternative daily cover for diversion credit; however, landfills may continue to use green material as ADC. A bill allowing diversion credit for ADC (AB 1647, Bustamonte, Chapter 978) goes into effect January 1, 1997. Biosolids Sewage sludge, also called biosolids, represents a small part of the waste stream as reported to the CIWMB in 1990. However, sanitation districts and companies involved in beneficial reuse of biosolids are enthusiastic about composting biosolids, and frequently mix in other urban organics as bulking agents. Much research has focused on sewage sludge and MSW compost, showing them to be safe soil amendments in many applications. IV. Barriers to MarketsUnderdeveloped Agricultural MarketsAgricultural markets for compost and mulch products are underdeveloped, due in part to the reasons described below. Market Information on Compost Lacking Market information on compost and other soil amendment products is not readily available. Compost commands a low price at local markets, so there has been no perceived need to track the flow of supply or demand on a statewide or national level until recently. Perception of Contamination Users want "clean" compost with no contamination by unprocessed waste or heavy metals. Curbside collected organics may be mixed with glass, plastic, metals, rock or other foreign matter. "Clean green" material processed through a permitted facility, may still contain "contaminants" such as plastic bags or tennis balls not screened out during processing. Public perception of urban compost is negative. This perception extends to all feedstocks, including yard trimmings, but is stronger towards biosolids. Several major food crop producers will not buy products grown on land that has used biosolids. Farmers want to know how to use compost, especially recommended application rates for specific crops, and long term versus short term benefits. Use of organic materials, especially compost from urban sources, is unfamiliar to many farmers and farm advisors schooled in conventional methods. They may not know anyone who has used compost. There is no list of demonstrations or resources for interested farmers. Compost Not High on Buy Recycled Procurement List Compost products made from municipal materials are not a high priority for government procurement when governments purchase soil amendment products for public parks, golf courses, and other landscaping uses. Perception of Compost Application as Too Costly Farmers may think that applying compost is expensive because equipment to apply compost or mulch products may not be available. Farmers have invested in water supply and drainage systems that also function to deliver fertilizers, herbicides and pesticide applications. Those systems are not adapted to spreading compost. Perception of Regulatory Red TapePublic Perception Public perception is that California has too much red tape. Compliance with the multitude of State and local regulations can be time consuming, costly, and complex. Siting and permitting a composting facility or operation can cost thousands of dollars and may include local business permits, special siting requirements, planning commission and other local government approval, as well as regional Water Quality Control Boards, regional Air Quality Management Districts and other regional or State agencies. While it is often the last permit obtained, the CIWMB composting facility permit is "a piece of cake" compared to the host of other requirements, to quote a recently permitted commercial composter. New Composting Facility Regulations Not Well Understood New composting facility regulations, effective July 31, 1995, have reduced the regulatory burden, which should aid the composting industry; however, potential composters and onfarm composters are cautious. CIWMB composting regulations are not widely understood, although they became effective July 31 1995. The regulations incorporate performance standards. They do not prescribe specific actions to avoid undesirable outcomes. Interpretation by Enforcement Agencies in combination with local ordinances, make existing and potential composters hesitant to begin or expand composting urban feedstocks. Operators prefer to know in advance which tier they will be on and exactly what requirements and fees will be imposed by State and local governments. V. Strategies to Overcome BarriersIncrease Compost UseThe use of compost and clean green materials in agriculture and in the landscape and nursery industries could be increased using some of the following strategies. Educate End Users and Producers CIWMB should compile and distribute market reports and other information about compostable products, and publicize market information from national waste management publications for compost producers . Case studies of successful marketing operations can be distributed. Develop a comprehensive tracking system to assess the development of compost and clean green mulching facilities and markets for organic products from urban sources to closely track the development of this emerging recycling industry. The CIWMB should continue its public education program promoting the value and benefits of urban compost at farm shows and in trade publications. Consumer education is needed to introduce conventional farmers to urban compost use and to reassure consumers about health and safety issues. Refine and Publicize Compost Quality Standards Continue cooperation and dialog between end users and producers to determine the market needs for compost product quality. Encourage efforts to further refine and implement compost product quality guidelines by the agricultural and composting industries. Continue working with California Compost Quality Council, California Organics Recycling Council, Association of Compost Producers and the Composting Council to assist the fledgling composting industry. Generally contaminant-free compost will find the highest value markets. Encourage improved collection methods. Collectors must ensure that load-checking protocols at facilities marketing "clean green" material result in contaminant levels at or below the required 0.5 percent level. Special care may be needed to monitor materials that are a visual problem, such as tennis balls and other hard-to-remove waste materials. What constitutes a contaminant depends upon the end use. Not all consumers demand the same type of product, and a contaminant in one application may be acceptable in another. Appearance is critical for landscapers who demand clean material for their clients. Farming uses may allow some amount of plastic or glass, while plant pathogens, herbicide residues or viable weed seeds are unacceptable. The CIWMB should encourage end users to demand the product they can use. At the same time, collectors must educate the public to prepare materials for collection in a suitable manner. Promote and Publicize Existing Compost Demonstration Projects Sponsor new research and demonstrations, extend existing projects, and encourage additional compost demonstrations and use by other groups throughout the state. The CIWMB should publicize the compost demonstration projects through field days, videos, and other media, and compile project results so that farmers can see agricultural use of compost firsthand, allowing farmers to discuss the pros and cons of compost use and compost products with their peers. Piggyback or cosponsor programs that encourage compost use, such as the Department of Pesticide Regulation's (DPR) Integrated Pest Management (IPM) Innovators program, and events of the Committee for Sustainable Agriculture, the Community Alliance for Family Farmers, compost producers, and other groups. More research and demonstration projects are needed to familiarize users with urban compost products in local environments (the "farm down the road"), and to provide information about application rates and efficiencies. Coordinate with the Fertilizer Research and Education Program (FREP) and other programs to promote inclusion of compost projects in grant awards. Publicize grant availability from other sources. Work with Cooperative Extension Farm Advisors, Resource Conservation Districts, and other researchers and agronomists to foster research on compost and support discussion of recent research findings and further research needs for urban compost. Promote Compost Product Sales Through Buy Recycled Efforts Continue efforts to encourage procurement officers to find local sources of compost for use at schools, parks, community colleges, and other public properties. Include compost and other recycled organic products in the CIWMB "buy recycled" online database. Educate potential governmental users and procurement officers about the availability of compost products. Encourage producers and end users to dialog so that composters will provide the type of material needed for specific applications. Publicize specifications of the Department of Transportation (Caltrans) for urban compost and compost made from recycled, municipally collected materials until they are included in the State Standard Specifications manual. Facilitate Availability of Compost Equipment Equipment for spreading compost products is commonly available. Existing conventional farm equipment, such as manure spreaders, can spread compost with little, if any, modification. Companies that specialize in spreading manures and composts can be hired on an "as needed" basis. Local governments can make information available about compost spreaders and equipment for compost application. Composters should consider product application as an additional service for their customers. Improve Compost ProductionCompost production can be improved by streamlining regulatory procedures, and facilitating exchange of information between the composting community and regulators. Reduce Regulatory Red Tape The CIWMB should continue efforts to streamline State regulations and work with local and regional decision makers, especially LEAs, to simplify and coordinate local procedures for siting composting facilities. CIWMB can assist local governments with preparation of step-by-step procedures on "permitting road maps" for their jurisdictions and set up green teams to expedite siting and permitting processes. R-Team, Board Recycling Market Development Zone staff, and zone administrators can be enlisted to facilitate siting and development of new and expanded compost facilities and operations in Recycling Market Development Zones and elsewhere. The CIWMB should prepare how-to fact sheets and case studies that explain composting requirements so all potential composters know what tier they fit into with a given feedstock type and volume of feedstock, active compost, and sales. Increase Understanding of Tiered Permitting The CIWMB has been widely praised for developing the tiered regulatory framework, but should increase efforts to help the regulated public understand the tiers and the compost facility and operation regulatory requirements. Although the Local Enforcement Agencies actually put the regulations into effect, the Board should sponsor regional workshops to bring regulators and producers together to share knowledge about safe, productive and cost effective composting techniques. Workshops could highlight best management practices and explore alternative ways to comply with regulations. VII. SummaryYard trimmings, food residues and other biodegradable materials in the organic fraction of the waste stream represent about 40 percent of the waste steam. Most of this material must be diverted to meet the 50 percent diversion goal by 2000. Compost and mulch are the primary products made from urban organics. Agriculture represents the largest potential market for urban compost and mulch use. Landscapers and nurseries are emerging markets for urban compost and mulch products. BarriersThe major barriers to recycling and composting urban organics, primarily yard trimmings and food wastes, are:
StrategiesStaff strategies to improve recycling and composting of urban organics include:
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Last updated: October 23, 2007 Market Development http://www.ciwmb.ca.gov/Markets/ Don Van Dyke: dvandyke@ciwmb.ca.gov (916) 341-6615 |
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