Activity Report DigestDigest

Paper Carton Collection Rate in Fiscal 2011

The status of recycling in 2011 has been clarified by the"Basic survey on the present status and trends of beverage
paper carton recycling", which has been conducted since1995 to collect information on recycling of paper cartons andprovide information to relevant organizations. The latest
survey was carried out between June and October 2012.
Shipment volumes of paper cartons in fiscal 2011 increased
because of the extreme heat and the Tohoku disaster, but
the collection rate did not increase. Overall, the paper carton
collection rate was 42.9% (a reduction of 0.7% over theprevious year).
One of the reasons behind the decrease in the collection
volume was the Great East Japan Earthquake. It has
reduced recycling of paper wastes (industrial paper waste)that are produced along with production of paper cartons.
Primarily, it was due to the stagnation of paper carton
collection activities in the affected and nearby areas.
※During the fiscal 2011 survey, we conducted a questionnaire-based survey of nine
paper carton manufacturers, 313 beverage manufacturers, 1,728 Japanesemunicipalities, 2,130 elementary schools, 983 supermarkets, six citizen's groups andwelfare work places, and 33 recycled paper manufacturers. In addition, we interviewed
staff members at four locations. Note that basic research could not be carried out insome areas due to the large earthquake that struck northern Japan in March 2011.
※Faulty paper cartons and base paper (raw paper) that have been generated by thepaper carton manufacturing and beverage filling processes at beverage plants, and edge
trims created during paper carton manufacturing are called "paper wastes" or "industrial
paper wastes".
※Paper cartons that are discarded after their contents are used at stores, businessfacilities, schools and households are called "used paper".

As paper fibers are long and strong, used paper cartonsare considered to be raw materials that contain goodquality recycled paper and are traded at a relatively
expensive price.
However, the transaction price of paper cartons differs bymunicipality, and it is difficult to calculate a standard price.
Here, we have calculated the price of paper cartons when
they are traded in municipalities without any additional
conditions besides the transaction price. We divided theprices into two types: the "delivery price" and the "carry-inprice". We also calculated the cost for group collection ofpaper cartons.
The average transaction price in fiscal 2011, as a whole,continued to increase from the previous year. Sales prices
to used paper recyclers and direct delivery wholesalers ofused paper, which are the primary trading partners formunicipality collection, have increased except for thedelivery price paid to paper recyclers.

Category
Used amount of paper cartons for beverages (A)Industrial paper wastes of paper carton manufacturers(Including industrial paper wastes and used paper)(43.6% in fiscal 2010)= Collection volume of domestic paper cartons ÷ Amount of base paper (raw paper) used=105.7 thousand tons/246.6 thousand tons

(Used paper cartons)

32.5％(33.0% in fiscal 2010)= Used paper carton collection volume ÷ Shipping volume of paper cartons from beverage manufacturers=67.7 thousand tons/208.3 thousand tons

14

Activity Report Digest●Paper Carton Collection Rate in Fiscal 2011

Voluntarygroup collection

Used paper carton collection rate

Municipality collection

42.9％2008

Used paper recycler

20092010

2011

43.5

43.6

42.9

33.0

33.0

32.5

2009

2010

2011
(Fiscal year)

40

32.0

30.5

30
25
20

19.9

15

13.4
1019942007

2008

Fiscal 1994 Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010

Percent
Fiscal 2011 increase overprevious year

216.0

255.9

251.0

244.3

246.8

246.6

0.0%

16.5

36.6

37.1

35.9

37.3

35.1

−6.0%

−3.6

3.0

2.6

2.1

3.3

56.4%
0.5%

197.9

215.7

210.9

205.8

207.3

208.3

168.7

194.1

189.3

184.3

184.6

184.8

0.1%

Vending machines (business)

18.5

9.9

9.8

9.7

10.8

11.7

8.1%

Milk for school lunches (business)

10.7

11.7

11.8

11.8

11.8

11.8

−0.1%

26.5

65.8

67.4

68.0

68.4

67.7

−1.0%

Collection volume of used (consumed) paper cartons (D) = (E) + (F)Fiscal year

42.6

41.1

Residential homes (C)Shipping volume of paper cartons for beverages from beverage manufacturers (B)Paper carton collection rate

45

Trends in key data (1,000 tons)

Industrial paper wastes of beverage manufacturers

Average transaction price of used paper cartons

Paper carton collection rate (H)/(A)Collection rate of used (consumed) paper cartons (D)/(B)50

35

As shown in the figure to the right, the paper carton collection
rate had dropped for the first time since the start of the survey.
The following table presents details of the collection volumeand rate.
The collection volume of domestic paper cartons in fiscal 2011
was 105.7 thousand tons. This was a reduction of 1.9 thousand
tons (1.8%) from the previous year. Although the collection
volume of used paper cartons dropped by 0.7 thousand tons
(1.0%), the volume from the voluntary group collection
increased 0.4 thousand tons (4.2%). The collection volume of105.7 thousand tons is approximately equivalent to the amountof paper that could be used to produce 600 million toilet rolls.

25.9

55.6

56.7

57.3

56.6

56.2

−0.7%

Collection volume from stores

13.8

31.8

33.4

34.5

33.6

33.0

−1.8%

Municipality collection volume

4.3

14.4

14.4

13.9

14.1

13.9

−1.4%

Voluntary group collection volume

7.8

9.4

8.9

8.9

8.9

9.3

4.2%

0.6

10.2

10.7

10.7

11.8

11.5

−2.4%

Collection volume from residential homes (E)Paper Carton Collection Rate in Fiscal 2011

Trends in paper carton collection rate

Paper car ton collection
volume in fiscal 2011 was105.7 thousand tons.

Collection rate (%)

Paper carton transaction priceof municipalities have increased
two years consecutively.

Paper carton collection rate
in fiscal 2011 was 42.9%.

Delivery price

8.5

6.2

7.5

7.1

Collection volume from business organizations (F)Carry-in price

7.8

5.4

6.9

7.5

Collection volume of milk cartons from schools

0.6

8.8

9.3

9.3

9.4

9.2

−2.3%

Vending machines, restaurants and others

−

1.3

1.4

1.4

2.3

2.3

−2.8%

16.5

39.4

39.7

38.2

39.338.1

−3.0%

16.5

36.6

37.1

35.9

37.3

35.1

−6.0%

−

2.9

2.6

2.3

1.9

3.0

55.0%
−1.8%

Delivery priceDirect delivery
wholesalers of used
Carry-in price
paper

9.3

7.0

8.9

9.4

9.4

7.0

8.0

8.7

Delivery price

11.9

8.8

12.3

10.8

Carry-in price

9.7

8.0

10.2

10.3

43.0

105.2

107.1

106.2

107.6

105.7

Delivery price

5.6

4.3

5.2

5.2

Import volume of used paper cartons

−12.3

13.9

10.9

12.7

14.0

10.2%

Carry-in price

5.8

6.9

5.1

5.9

Total volume of accepted paper cartons

43.0

117.5

120.9

117.1

120.3

119.7

−0.5%

95.7

−0.7%

Paper manufacturer(Unknown traders)(Yen / kg)

Collection volume of industrial paper wastes and used paper cartons (G)Collection volume by paper carton manufacturers
Collection volume by beverage manufacturers
Collection volume of domestic paper cartons (H) = (D) + (G)Recycling volume of paper cartons

30.1

89.2

93.8

93.2

96.3

Paper carton collection rate (H)/(A)

19.9%

41.1%

42.6%

43.5%

43.6%

42.9% −0.7point

Collection rate of used (consumed) paper cartons (D)/(B)

13.4%

30.5%

32.0%

33.0%

33.0%

32.5% −0.5point

Collection rate of used paper cartons in residential homes (E)/(C)

15.4%

28.7%

30.0%

31.1%

30.6%

30.4% −0.2point※Recycling volume of paper cartons = Total volume of accepted paper cartons X Yield rate The yield rate after fiscal 2001 is computed based on the questionnaire survey.
※Industrial paper wastes for fiscal 1994 include aluminum laminated paper cartons.
※Collection volume of paper cartons from business organizations is calculated from fiscal 2004 based on the questionnaire survey.
※A review of the weight of milk cartons for schools conducted in fiscal 2005 has affected the value of some items.
※Some of the total values may include errors due to rounding to the nearest 100 tons. Also, due to the same reason, some figures may not add up if you calculate the collection rate andpercentage over the previous year's figures using the values in the table.
Activity Report Digest●Paper Carton Collection Rate in Fiscal 201115

Activity Report DigestDigest

Paper Carton Material Flow in Fiscal 2011
The following shows the overall state of paper carton recycling in fiscal 2011.
※Unit: 1,000 tons

140.6

※Figures in ( ) indicate the difference between fiscal 2010,※Some figures may not add up to the total due to rounding.

（+1.7）

Amount of base paper(raw paper) used

Sales volume of
paper cartons

246.6

211.6

（-0.1）（+2.2）

Paper carton manufacturers

Base paper (raw paper) manufacturers

208.3

11.7

Volume ofindustrial wastes＊（±0.0）（＋0.1）

8.2

Kitchen papers

0.2

8.6%

Total volume ofaccepted paper cartons

0.9

119.7

1.0%

（-0.6）

Tissue papersRecycling volumeof paper cartons

26.3%（-0.6）

25.1（-0.1）

95.7

Volume of accepted
paper cartons in Japan

Toilet rolls

61.3
64.0%

Business paper
Industrial paper
cartons
wastes and used papers

56.2 11.5 38.1

24.0（-0.4）（-0.3）（-1.2）（＋0.2）

Volume of paper cartonscollected fromschool lunches

9.2

35.1

（-0.2）（-2.2）
Volume of recycled papers
collected by beverage
manufacturers

33.0【 Store collection】 （-0.6）
Co-ops and supermarkets

3.0

Collection volume ofpaper cartons fromresidential homes

56.2

105.7 14.0

Household papercartons

Residues of laminated polyethylene(mainly from thermal recycling)（±0.0）

Imported usedpaper cartons（-1.9）（+1.3） Recycled paper manufacturers

2.6

School lunches (business)（＋1.1）

0.2%

11.8

2.3

0.3

Recycled products
Cardboards

Collection volume of
paper cartons from vending
machines and stores

Volume of recycled papers
collected by paper cartonmanufacturers

Other（+0.9）

Vending machines, restaurants and others (business)

Volume ofindustrial wastes＊

0.0

9.4

（+0.9）（＋1.2）●Used in handicraft class●Used in kitchens●Paper making and othersMunicipal waste disposal andrecycling shown above

Stores and others

3.3（-2.2）（+0.5）

General household and others (residential homes)

Volume of paper wastes(industrial paper waste) etc.

35.1

128.6

（+0.1）（+1.0）

Beverage manufacturers

Volume of paper wastes(industrial paper waste)

184.8

Shipping volume ofpaper cartons（-0.4）
Used paper recycler and direct delivery wholesalers of used paper

13.9【 Municipality collection】 （-0.2）
Municipalities

14.0

9.3

（+1.3）【 Imported used paper】
Overseas【 Voluntary group collection and others】（＋0.4）
Citizen's groups（±0.0）
16＊ The volume of industrial wastes includes that from thermal recycling.
Activity Report Digest●Paper Carton Material Flow in Fiscal 2011

Activity Report Digest●Paper Carton Material Flow in Fiscal 201117