The real cost of waste can be much higher than simply the disposal cost, 20-30 times higher in fact. Waste prevention can reduce all the costs associated with the waste, while waste management can only reduce disposal costs.

Waste Prevention

Waste prevention means eliminating waste, reducing waste or re-using materials to prevent waste occurring. It is cost-effective, because it means reducing purchasing costs, as well as waste disposal costs. Here are two examples.

  • Food. Let's say 1 kg of food ingredients costs £1. If it becomes waste that's £1 off the bottom line and 5p on the waste bill. Preventing that food from becoming waste adds £1.05 to profits, or 20 times the cost of disposal, and that's not counting the cost of handling and preparing that food before it is thrown in the bin.
  • Bottled water. Take a case of glass bottled water costing £6. Disposing of the empty bottles from that case could cost 50p. Using a bottle refilling system could save on both beverage and waste disposal costs, even after labour and maintenance costs are taken into account.

So think about the cost of the materials that are in the bin - they are likely to have cost many times what it costs to dispose of the waste.

Waste Management

Once waste has occurred it can be recycled, incinerated, composted, used to make biogas or disposed of to landfill. Increases in landfill tax make other options increasingly attractive.

  • For example diverting cardboard from landfill for recycling can reduce waste disposal costs considerably. The collector offsets the cost of additional collections with revenue from sales of cardboard, reducing disposal costs.
  • Many other materials such as glass, cooking oil, cans and paper can be recycled by hotels, pubs, restaurants and caterers.
  • Composting and Biogas are useful options for catering waste but must occur in plants licensed under the ABPR's (Animal By-Products Regulations). While composting capacity is limited it is growing and these options are expected to become increasingly important in the future.
  • Disposal of waste to landfill is becoming increasingly expensive due to higher gate fees and increases in landfill tax. Landfill tax is currently £21 per tonne (2006/7) and a planned escalator means increases of £3/tonne per year towards a target of £35 per tonne. The government is consulting on setting a target for diversion of 63% of commercial and industrial waste from landfill by 2010.

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