Dive Brief:
- Magic City Enterprises, a Cheyenne, Wyoming nonprofit, will close its recycling operation at the end of the summer. The company cited loses every fiscal year from 2013-2015 between $57,000 and $84,000.
- Before Magic City began the program four years ago, the city ran it at a loss of around $175,00 per year.
- Magic City Enterprises helps people with physical and mental disabilities, and the recycling program was threatening its ability to provide jobs to people with disabilities in Cheyenne, Magic City president Laura McKinney wrote, notifying city officials.
Dive Insight:
Market fluctuations and other factors can make recycling a costly matter. Businesses including some nonprofits are unable to keep recycling programs alive. Dove Inc’s program in Decatur, IL, recently announced its closing. Until more stability is created in markets for recyclables or until prices in those markets rise, more businesses might go the way of Dove and Magic City.
