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Mr Shannon announced he would leave his role, after 11 years as chairman, at the group's annual general meeting in Palmerston tomorrow.
As commercial operators offered new rubbish and recycling services at competitive prices the situation for recycling in Palmerston and the Waihemo area has become more challenging, Mr Shannon said.
As Waihemo Wastebusters was a non-profit and had a community focus it had retained the loyalty of many clients, he said.
Recent changes in global recycling - due to a Chinese Government's policy - meant there was no longer a market for most of the plastic which used to be accepted at the Waihemo Wastebusters and the Oamaru Resource Recovery Park.
The success of the volunteer-manned reuse shop, in Palmerston, had a turnover of $15,000, and subsidised the recycling services, enabling the group to remain financially viable.
Profits from the shop had been given back to the community through grants such as the one given to the building of the new Palmerston Health Centre, Mr Shannon said.
Even with all the uncertainties facing it, Mr Shannon said he hoped the Waihemo Wastebusters committee would able to offer more community grants in the future.