Why are recyclable material recovery facilities not economically self-sustaining? A technical, financial and social analysis based on data from units in Brazil

This study assesses operational and financial performance, as well as social and labour aspects, of 12 material recovery facilities (MRFs) in 4 Brazilian regions, using monthly data from 2024. An analytical framework consisting of 13 metrics was developed to evaluate productivity, costs, revenue and labour indicators. Statistical analyses were conducted to explore the relationships between these metrics and their effects on MRF outcomes. Results reveal significant variability in productivity across facilities, with a negative correlation between processing costs and productivity, but no direct link to revenue generation, suggesting external market influences. Rejection rates ranged from 10.07% to 42.38%, with moderate effects on productivity. The cost per mass processed varied significantly, from 11.13 to 41.08 USD tonne^-1, with an average of 23.63 USD tonne^-1. Financially, only two MRFs achieved over 70% self-sufficiency, with most relying on external subsidies. Labour costs dominated operational expenses. Worker turnover ranged from 17% to 81%, negatively impacting costs and efficiency. The study also explores revenue models and their influence on operations and concludes that MRF sustainability requires not only operational improvements but also innovative financing models, including service fees, public-private partnerships and extended producer responsibility mechanisms. Policies addressing technical efficiency, social equity and revenue stability are crucial for strengthening MRFs. The findings offer insights for similar contexts in developing countries, and the metrics and indicators proposed can be viewed as operational key performance indicators that can be applied globally to assess MRF performance in diverse settings, offering a valuable tool for future studies and standardising performance evaluation.