OPERATIONAL REPORT 2019 OF IRISH FARM FILM PRODUCERS GROUP CLG (IFFPG) TO THE DEPARTMENT OF COMMUNICATIONS, CLIMATE ACTION & ENVIRONMENT MAY 2020 OPERATIONAL REPORT 2019 P1 CONTENTS SECTIONS APPENDICES FOREWORD ............................................................3 APPENDIX 1: .......................................................... 21 IFFPG BOARD .........................................................5 APPENDIX 2: ........................................................22 APPENDIX 3: ........................................................23 1. The IFFPG Organisation ......................................7 APPENDIX 4: ........................................................24 2. Regulatory Framework .......................................7 APPENDIX 4: ........................................................25 3. Corporate Governance .......................................8 APPENDIX 5: ........................................................26 4. The Market ..........................................................8 APPENDIX 6: .........................................................27 ~ 4.1 Silage Wrap & Sheeting ..........................................8 ~ 4.2 Netting & Twine ......................................................9 TABLES ~ 4.3 Membership Interaction ........................................9 ~ 4.4 The Recycling Levy ..................................................9 1: Recycling Rate for Wrap and Sheeting Waste 2019 ............................................10 5. Collections ........................................................10 ~ 5.1 Wrap & Sheeting Waste ......................................10 2: Farmer Collection Charges 2019.......................11 ~ 5.2 Collection Methods...............................................10 ~ 5.4 Farmer Collection Charges ...................................11 3: Marketing Media Mix 2019 ............................... 12 ~ 5.5 Netting and Twine Waste .....................................11 4. Multi-agency Border Enforcement ~ 5.6 Farm Plastics Packaging Wastes .........................11 Campaign 2019 ..................................................... 15 6. Supply to Recycling Facilities ........................... 12 5: Farmer Collection Charges 2020 ..................... 17 7. Marketing and Promotion ................................. 12 6: Wrap & Sheeting Waste Recycling Target 2020 ...........................................................18 8. Enforcement Support ....................................... 15 9. Other Key Developments .................................16 CHARTS ~ 9.1 Contractor Tendering Process .............................16 1. Wrap & Sheeting Market 2015-2019 .................8 10. Financial Overview .........................................16 2. Wrap & Sheeting Market Breakdown 2019 .......9 11. Programme of Activities for 2020 ..................16 ~ 11.1 Covid-19 Impact ....................................................16 3. Netting and Twine Market 2018-2019 ..............9 ~ 11.2 The Recycling Levy ............................................... 17 4. Netting & Twine Market Breakdown 2019........9 ~ 11.3 Farmer Collection Charges ............................... 17 ~ 11.4 Bring-centre Programme ................................... 17 5. Wrap & Sheeting Waste Collected for ~ 11.5 Farmyard Collection Service ............................. 17 Recycling 2015-2019 ............................................10 ~ 11.6 Wrap & Sheeting Waste Recycling Target .....18 6. Breakdown between Bring-centre and ~ 11.7 Netting & Twine Waste ......................................18 Farmyard Collections 2019 ..................................10 ~ 11.8 Farm Plastics Packaging Wastes .......................18 7. Farm Plastics Packaging Waste ~ 11.9 Supply to Recycling Facilities ............................18 Breakdown 2019 ....................................................11 ~ 11.10 Enforcement Support ........................................19 P2 OPERATIONAL REPORT 2019 OPERATIONAL REPORT 2019 P3 FOREWORD IFFPG is pleased to report that 2019 was another outstanding year on the recycling front, with a record 30,066 tonnes of silage wrap and sheeting waste collected and a 79% recycling rate achieved. In addition, almost 2,000 tonnes of other farm plastics of stored waste into the 2020 season. Covid-19, which has wastes such as netting, fertiliser bags and agri-chemical caused the temporary closure of a number of recyclers, has drums were also recovered. However, the recycling market further reduced the rate of supply to facilities and gives rise to in 2019 was very challenging following the closure of the capacity concerns later in the year in our contractors’ yards. Chinese market the previous year, which resulted in reduced demand and the reintroduction of gate fees by recyclers. The Farm plastics sales reached a record high in 2019, with silage Covid-19 crisis has further exacerbated this situation, with wrap and sheeting sales increasing by 11%, while netting a number of facilities now closed due to lack of demand for and twine sales increased by 14%. The increase was due to their products. In terms of finances, the company was in excellent grass growth conditions, which increased yields and good order at the end of 2019. A substantial rise in the cost encouraged farmers to convert surplus grass into silage. The of recycling waste was compensated by growth in income farm plastics market has increased by 17% over the last five associated with increased charges to members and farmers, years, with the abolition of the milk quota in 2015 and better as well as enhanced recycling levy income associated with a grassland management the key contributory factors. record year for farm plastics sales. IFFPG, through our Compliance Officer, continued in 2019 to In 2019 IFFPG had its best year to date for silage wrap and support the work of the enforcement authorities to ensure sheeting waste collections with 30,066 tonnes collected, that the recycling levy is applied to all farm plastics products which was a 2% increase on the previous year which was also placed on the Irish market. The highlight in this regard was the a record year. The trend in recent years is very much upwards, annual multi-agency border enforcement campaign, which with a 19% increase in collections over the last 5 years saw retailers in border counties randomly inspected to ensure attributable to a growing farm plastics market, along with that the recycling levy was been applied to farm plastics an increasing number of farmers availing of our service. Also products. in 2019, 850 tonnes of netting and twine waste, as well as a The finances of the company were in good order at the record 946 tonnes of farm plastics packaging wastes (fertiliser end of 2019. A 37% increase in turnover can primarily be bags, feed bags and agrichemical drums) were collected for attributed to increases to both recycling levy and collection recycling. The vast majority of waste was collected during charges, which were necessary to cover significantly increased our bring-centre programme, which saw 235 bring-centres recycling costs. Reserve surplus at the end of 2019 will be operated during the period April to August 2019. used to recycle waste that was carried over into the 2020 Although IFFPG supplied almost 27,000 tonnes of silage wrap season. The Covid-19 crisis is likely to negatively impact our and sheeting waste to recyclers over the last 12 months (over finances, with the closure of facilities likely to cause additional half of which went to Irish facilities), the market was difficult. market over supply and further increase recycling costs. The decision by the Chinese in 2018 to cease importing Finally, in these difficult times we would like to sincerely plastics waste caused over supply in Europe, which in turn thank all our stakeholders for their continued dedication gave rise to both reduced demand and the reintroduction and support throughout 2019 and very much look forward of gate fees. The impact on IFFPG was twofold, a 46% to working effectively and safely together again in the year increase in operational costs in 2019, as well as the carryover ahead. Tom Dunne, Liam Moloney, IFFPG Chairperson IFFPG Manager P4 OPERATIONAL REPORT 2019 OPERATIONAL REPORT 2019 P5 IFFPG BOARD as on 31st December, 2019 SECTOR REPRESENTATIVE ORGANISATION Chairperson Tom Dunne Tom Power SPG Packaging Ireland Ltd. Manufacturer Jerry O’Brien RPC bpi indupac Michael Murphy TAMA UAT Importer / Distributor Gavin McCarthy Zeus Packaging Ltd. Ken Daly Kerry Agribusiness Ltd. Retailer /Co-operatives Michael Lehane Dairygold Ltd. Fintan Conway (Co. Secretary) Irish Farmers’ Association Farming Tom Cooney Irish Farmers’ Association Dr Helen Sheridan Independent (Environment) Independent Noel McCarthy Independent (Legal) P6 OPERATIONAL REPORT 2019 OPERATIONAL REPORT 2019 P7 1. THE IFFPG ORGANISATION IFFPG is a not for profit body which is approved by the Minister for Communications, Climate Action and Environment (DCCAE) to operate as the national farm plastics recycling compliance scheme. Our vision is to be recognised by all our stakeholders as an organisation that consistently and effectively delivers on farm plastics recycling targets to ensure the protection of our rural environment and support of the circular economy. The primary aims and objectives of IFFPG can be summarised Since its establishment in 1998, IFFPG has been responsible as follows: for recycling over 350,000 tonnes of farm plastics waste and currently