Loddon Mallee Waste and Resource Recovery Group executive officer Gordon Fraser believes the region has the capabilities to be a leader in recycling industry.
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Following bushfires forcing the temporary closure of Veolia Environmental Service's Echuca recycling facility, Mount Alexander Shire will send recycling to landfill in the short term.
Mr Fraser said the LMWARRG works with eight local councils - City of Greater Bendigo, Mildura Rural City, Swan Hill Rural City, Buloke, Gannawarra, Loddon, Macedon Ranges and Mount Alexander shires - to maximise the strategic benefits of waste management opportunities.
"Local councils are supporting recycling to the greatest of their ability," he said. "They are keen to not see materials go to landfill - if it does, it is an absolute last resort.
"The challenge with recycling is that it's a dynamic industry that is subject to local and regional events like bushfires and flood, as well as national and international things such as moves in commodity prices or changes in ownership of companies.
"It's a dynamic business to work in and it's challenging, so we need to be agile and prepared to move with the times."
Mr Fraser encouraged people to not lose heart in the wake of the country's recycling struggles.
"The most important thing is follow instructions from councils when you recycle, do it right," he said. "Recycling is important, don't lose heart.
"We have eight councils with slightly different approaches but the same goal to protect the environment, economy and society."
Mr Fraser said it will be important to capitalise on future opportunities in the recycling sector.
"We would encourage people in the region to look at this as a challenge," he said.
"One of bigger picture items that we need to look at as a region are ways we can maximise the benefits available.
"Just in our region alone, there are a couple of fairly well advanced trials for using crushed glass in asphalt to effectively make (road) surfaces more slip-resistant.
"Another company collects orchard and fruit netting, irrigation pipes and other industrial waste to produce (recycled) plastic including railway sleepers.
"There are clever people and businesses in the Loddon Mallee and it is an opportunity to create employment and benefits away from the traditional model."