International Journal of Environment, Agriculture and Biotechnology

Vol-6, Issue-1; Jan-Feb, 2021

Journal Home Page Available: https://ijeab.com/

Journal DOI: 10.22161/ijeab

Junkshop Industry as Waste Recycling Business: A Green

Response towards Economic Sustainability and Social
Responsibility
Felipe E. Balaria, Jennifer G. Fronda, Elsie G. Baligod, Shirley R. Santiago, Carmela T.
Sula, Eleah Vida V. Pelayo

Nueva Ecija University of Science and Technology, Cabanatuan City, Philippines

Received: 08 Nov 2020; Received in revised form: 26 Dec 2020; Accepted: 03 Jan 2021; Available online: 11 Jan 2021
©2021 The Author(s). Published by Infogain Publication. This is an open access article under the CC BY license
(https://creativecommons.org/licenses/by/4.0/).

Abstract— This study was conducted to assess the junkshop industry in Cabanatuan City, Philippines. It aimed
to determine the profile of junkshops, the materials they trade, and their compliance with legal requirements.
Using descriptive qualitative research design with 20 randomly chosen participating junkshops as respondents,
the researcher found out that junk shop operations are lucrative and can help support economic development
as well as solve certain environmental issues. However, many of them were operating without registering with
the concerned authorities. Aggressive involvement of the LGUs, by organizing junkshop operators, and close
monitoring of junkshop operations are few from among the recommendations of the study.
Keywords— Junkshops operation, a requirement for junkshop operation, environmental benefits.

I. INTRODUCTION a million dollars while at the same time contributes to the

Junkshop business is a simple but lucrative business that world's recycling industry.
many would not want to enter in the Philippines due to its Anlacan (2012) enumerated that scrap trading business
“scrappy” nature as it deals with rejects and unclean or requires the following to succeed: sufficient capital of at
soiled materials that are usually smelly (Business Diary PH, least two hundred thousand pesos (4,000 U$) for purchasing
2018). scarps and for space rentals; knowledge of and focus on the
The junkshop business is very relevant these days when kind of scraps to trade like metal, paper, glass, and plastics; a
the campaign for environmental awareness, proper waste suitable location on where to buy and store scraps; business
disposal, and recycling is most aggressive due to garbage's registration and permits from the barangay or municipal hall,
presumed contribution to the pollution that usually results in and Bureau of Internal Revenue registration for receipts; list
flooding in most areas especially prevalent in the `of good buyers to ensure the best offer for your scarps; good
Philippines. working relationship with at least two buyers for better
leverage; knowledge of the going, buying and selling prices
According to Fridman (2016), the scrap industry does
of scraps; proper equipment like weighing scale and delivery
not get a lot of attention. According to him, although the
vehicle; and thorough knowledge of the business operation.
industry is not glamorous, it can earn multi-million dollars
and contribute to the recycling industry in a way. He To start the business, the Filipino Entrepreneur (2010)
implied that this far-from-being glamorous industry can earn stated that it would be best to have: potential clients; a walk-

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in procedure to avoid pilferage; and daily accounting to III. METHODOLOGY

determine what scrap needs to be maintained or replenished This study used a descriptive survey design using a
day by day. Like Anlacan, the Filipino Entrepreneur also total enumeration of 20 junkshop owners as respondents. A
believes that thorough knowledge about the trading process descriptive survey design was employed because the study
of scrap is necessary. surveyed to describe the junkshop business as it existed at
Junkshop owners and operators probably did not know the time of the study. Total enumeration was used because
that their business help in the reduction of trash builds–up in there were only a limited number of junkshop operators in
the community. It is a win-win solution that probably for the city. Meanwhile; the primary tool used to gather data was
both the owners and the scavengers. The scavengers a survey questionnaire triangulated by personal interview
"explore" their trash mounds, trash bags, and trash bins for using an interview guide. For data analysis, descriptive
anything recyclables they can sell to the junkshops where statistics such as frequency, mean, and percentage were
they get money for it. The junkshop operators who buy used.
scraps provide an opportunity for the living of these
scavengers, and the community without being mindful of it
IV. RESULTS AND DISCUSSION
gets freed from more serious trash problem.
The following were the findings of the study:
It is assumed that if only the number of those who
indulge in the junkshop business would increase, dumped 1. Profile of Junkshops in Cabanatuan City
junks will not clog some areas, and thus, flooding would be Table 1 would show the detailed findings of the profile
prevented somehow. of the junkshops.
This study presumes that if only many would indulge in 1.1 Building structure
the junkshop business, the more they could earn money
It can be seen from Table 1 that in terms of building
while providing a source of livelihood to the scavengers as
structure, wherein the junkshops surveyed were classified as
they help clean the community at the same time. However,
to concrete or permanent and light or temporary, five (5) or
since the job is dirty, only a few engage in it. Probably, if
25 % were housed in concrete structures while 15 or 75
many would see and read about the potential of the business,
percent were housed in structures made of light materials.
many would go into it; hence this study.
It can be recalled that in 1978, the Philippine
government had set an occupational safety standard in
II. STATEMENT OF THE PROBLEM compliance with the constitutional mandate to safeguard the
The study focused on scrap business in Cabanatuan workers' social and economic wellbeing as well as their
City, Philippines as a green response to economic stability physical safety and health. According to OSH Standards
and social responsibility. (1989), this is considered a landmark in the Philippine labor
and social legislation. Apparently, since most of the
It specifically aimed to determine the following:
junkshops were made of light materials, it could be deduced
1. The profile of junkshops in Cabanatuan City in that the junkshop industry in Cabanatuan City needs
terms of : upgrading to ensure that they would not pose a threat to the
1.1 building structure; safety of the workers and its adjoining structures.
1.2 lot area; Table 1. Profile of the Junkshops in Cabanatuan City
1.3 capital investment 1.1 Building structure materials f %
2. The scrap materials in the junkshop in terms Light 15 75
of:
Concrete 5 25
2.1 specifications; and
20 100%
2.2 buying and selling price
1.2 Lot area
3. The operations of the junk shops in terms of
< 1,000 sq.m. 13 65
registration with the authorized government
agencies. 1,001 - 2,000 sq.m. 5 25

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2,001 - 3,000 sq.m. 2 10 1.3 Capital Investment

20 100% Evidently, the scrap business in Cabanatuan City is still in
its infant stage considering that the capital investment of the
1.3 Capital investment
majority, 12 or 60 % was only 100,000 pesos. Fewer,
< Php 100,000 12 60 comprising four or 20%, were able to put up the minimum
100,001 - 200,000 (2,000 4 20 capital requirement of at least 200, 000 pesos. Only the
– 4,000 U$) remaining four (4) or 20 % were able to put capital
investment above the minimum requirement.
200,001 - 300,000 2 10
The above figures suggest that most of the junkshop
300,001 - 400,000 2 10
operators in the City were small players. Interviews revealed
> Php 400,001 0 - that most of those who are engaged in the business do not
20 100% have the financial capacity to invest enough to operate in
large scale transaction. This may also bear effect on the
environment because it follows that when the capital to
1.2 Lot Area of the Junkshops accommodate more scraps is limited, more scraps will tend
Table 1 further shows that the majority of the junkshops; to remain in the dumping sites and landfill around the
comprising 13 or 65 % occupy a lot area of 1000 sq. m. and communities, posing as eyesores and threats to the
below. The second majority comprising five (5) or 25 % environment.
occupies an area that ranges from 1,021sqm to 2,020 sq. m. 2. The scrap materials in the junkshop
The rest, comprising only two (2) or 10% occupies a lot
2.1 Specifications
area between 2001 to 3000 sq. m.
The study revealed as can be viewed from Table 2 that
The above figures imply that majority of the junkshops
the scrap materials bought by the junkshops are categorized
are not complying with the 2,000 sq. m. minimum lot area
as plastics, glass, paper, and batteries.
required for junkshops. This would mean that with the
current situation of the junkshops, there would be a The study also revealed that not all the 20 junkshops buy
tendency for lesser movement between files of scraps and a all the specified plastics namely HDPE (high-density
tendency as well that in just a slight error an avalanche polyethylene), PET (polyethylene terephthalate), LDPE
might happen and the workers may get buried alive beneath (low-density polyethylene), PP (polypropylene), and HIPS
the scraps. (high impact polyethylene). HDPE includes soap holders,
food trays and crates, motor oil containers, and the likes
Another implication is that the situation would require a
except for cosmetic bottles. PETS include bottles of mineral
faster turnover of scrap materials from sellers to buyers so
water, cosmetics, and soft drinks. LDPE includes clear
that there would be a larger space left inside the shop. This
plastic bags, crop protection sheets, ice cream container lids,
would decrease the chances of accidents but may require
and computer covers. PPs include wastebaskets, water
frequent transportation that in turn would also require an
basins, egg trays, bottle caps, and tube caps. HIPS include
increased transportation budget.
disposable drinking cups and disposable spoons, forks, and
knives.

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Table 2. Specifications of scraps accommodated in junkshops

Specifications n % Buying Price/kg (Note: 1U$ = Php 50)
Plastics
HDPE 18 90 Php 5.00 – 16.00 ( 10 – 32 cents U$)
PETS 12 60
LDPE 4 20
PP 9 45
HIPS 8 40
Glass
Whole glass 20 100 Php 0.50 – 150.00 (0.01 – 3.00 U$)
Broken glass 20 100 -
Colored Php 0.10 – 0.20
White Php 0.50 – 1.00
Metals
Aluminum 20 100 Php 30.00 – 45.00 (0.60 – 0.90 U$)
Scrap metals 20 100 Php 1.00 – 4.50
Copper 20 100 Php 70.00
Alloys 20 100 Php 30.00 – 45.00
Brass fender 20 100 -
Washers 20 100 -
GI Sheets 20 100 Php 0.25 – 1.00
Zinc 20 100 Php 8.00 – 15.00
Paper
Assorted 20 100 Php 8.00 ( 16 cents U$)
Newspaper 20 100 Php 15.00
Cardboard 20 100 -
Magazine 20 100 Php 8.00
Office paper (white) 20 100 Php 11.00
Batteries
1SNF 20 Php 50.00 – 70.00
1SMF 20 Php 150.00 - 400.00 (3.00 – 8.00 U$)
2SM 20
3SM 20
6SM 20
2D 20
4D 20
8D 20

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With the result, it could be said that if only all junkshops Further analysis revealed that 45 percent of registered
would buy all sorts of recyclable plastics as mentioned shops were the larger ones; the smaller ones were not
above, there would be no way plastics would litter the registered at all and operating without giving back in the
environment. Sadly, however, it was found out that not all form of fees to the LGU. When interviewed about why they
junkshops in Cabanatuan City buy them. As can be gleaned did not register their business, the operators said that it was
in Table 2, only HDPE and PETS seemed to be most difficult to secure permits because of the building
acceptable to buyers. requirements. But they just went on with their business albeit
The glass bought by junkshop operators is classified as in the absence of a permit, and ironically their attention was
whole or broken. The broken ones are further classified as not even called by authorities for operating even without the
colored or white. Fortunately, all junkshops in Cabanatuan necessary permit.
city buy all sorts of these. The result implies that while the junk shop business may
Metals are also classified according to their rarity and it is be lucrative, only the operators and the sellers seem to profit
very fortunate that these metals were not likely to be trashed from it. The government did not receive anything in return
somewhere as all can be bought by the junkshop and be from them in the form of tax. This finding means that since
recycled. these shops operate without LGU permission, they
consequently do not pay dues; so while they earn, and
All kinds of papers, classified according to color and
somehow clean the surroundings of trash, they however do
thickness, are also bought in the junkshops. In terms of
not contribute to the government coffer.
batteries, however, it could be noted that only batteries of
vehicles are accepted in junkshops. The above-mentioned findings also imply that these shops
may pose a threat to the safety and well- being of the shop
With the above findings that show junkshop owners are
workers because they may be subject to danger of threats and
buying almost all sorts of recyclable scraps, there is no doubt
abuses without the authorities knowing it. All these because
that they help in keeping and preserving the environment one
they did not seek the permission of authorities who are
way or the other.
supposed to ensure that they operate based on standards.
2.2 Junkshop operators’ selling price There is also an indication of laxity among concerned
It can also be viewed from Table 2 that the scraps authorities.
bought by the junkshops get to be sold to bigger scrap
traders, sometimes 100 percent higher than the cost they
V. SUMMARY, CONCLUSIONS, AND
bought them. That is why, it can really be said that while
RECOMMENDATIONS
these owners help clean the environment, they profit from
the junks at the same time. Indeed, a junk shop operation Summary of findings
can be a profitable business. 1. The study revealed that the majority of the
3. The operation of the junkshops in terms of government junkshops in Cabanatuan City are housed in structures made
requirements of light materials, erected in a 20 to 1000-sq. m. areas of lot,
and operate with only Php100,000 investment capital.
While there is a law requiring any business to get
permission to operate from the local government unit (LGU), 2. The junkshops buy almost all types of plastics,
it is evident in Table 3 that the junkshop business in whole or broken glasses, metals, papers, and vehicle
Cabanatuan City did not seem to be bothered by this batteries. They buy junks by the kilogram, with paper as the
requirement as only nine (9) of them are registered. cheapest (price ranging from 50 cents to Php15 per kg.) and
with batteries and certain types of metal as most expensive
(price ranging from 50 to 70 Php per kg) They sell the scarps
Business Registration with the LGU n % they bought at 100 % over the price they bought them.
With 9 45 3. Only 45 % of junkshops in Cabanatuan City were
Without 11 55 reregistered. The rest are operating informally or without
permits from the local government unit and other
Total 20 100% government agencies.

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