Barbados in particular and Caribbean Islands in general, currently have an opportunity to make some money and tidy up their countries in pursuit of a cleaner environment in which to live.

As a regular visitor to your shores, twice so far this year, I am appalled at the vast amount of scrap vehicles lying about the countryside quietly rusting away, and in some cases, creating a potential health hazard.

Some years ago, I wrote an article for the Broad Street Journal costing out the benefits of collecting steel scrap and shipping the product off to Brazil and Portugal. In those days, these were countries offering the best price for ferrous scrap.

The price then was some 75 Bajan dollars per ton (imperial measurement). Today, there is a world wide shortage of scrap steel required in the process of making virgin strip, beams and plate. This fact is reflected in the present price being offered, namely, a staggering 700/750 Bajan dollars per tonne(metric).

The reason for this amazing price leap is the huge demand for the product by both China and India, particularly the latter, as their economies surge forward. Very low labour rates result in highly competitive finished goods prices being taken up by eager customers.

Barbados has a new Government in post, with I understand, a green agenda. In discussions with  various businessmen and companies on the island, I have been able to calculate that at a rock bottom minimum, there is at least 200,000 tonnes of old cars alone; let alone ancient busses, lorries, vans, motorcycles and a host of steel bric-a-brac. This alone tots up to some 140 million Bajan dollars, quite a tidy sum to add to the export figures, and a healthy contribution to the balance of payments figures.

What is required to achieve this prize?  In short, two or three pieces of sophisticated equipment, some highly skilled operatives and a deep water port with an adjacent 12 acre site for processing and packing. A number of local jobs would also be created, and such a plant could have a long term future as more and more vehicles are imported. In addition, Bridgetown could become the hub for receiving and processing scrap from neighbouring countries.

I know of one company in particular that is costing such a project, and I am sure that Hadford Howell MBE, senior commercial officer at the British High Commission, would be delighted to steer interested parties in the right direction.

Steel scrap, like most commodities is going through a period of unprecedented price rises. However, the market can drop as well escalate, and this window may not last for ever. Nevertheless, both China and India have vast home markets to be satisfied. Workers in both countries are demanding a far higher standard of living, as reflected in factory gate price rises of some 25% this year alone, with a similar forecast for 2009 .  I therefore believe that it could be at lease two years before any noticeable reduction takes place. The quicker the opportunity is grasped the better.

Similar conditions also apply to the non ferrous market.  Brass, Copper, Bronze, Stainless Steel, Aluminium, and all the Nickel Alloys currently command premium prices.   At present, copper scrap is commanding prices in excess of  14 Bajan dollars per kilo. This  means that stripping out old refrigerators, washing machines, radio and  TV sets can be highly lucrative. The process of stripping out obsolete engineered products is at present a fast track to making money. Everything can be recycled at a profit, and that is definitely environmentally friendly. The really exotic alloys can command prices of up to 60,000 dollars Bajan per tonne, but this will entail much segregating into type and grade.

Financial gains achieved from re-cycling, can offset the inevitable higher costs of raw material. I have not the slightest doubt that for the next two years, there will be a continuous rise in the basic prices of all commodities, as the rapid advance in petroleum prices increases  feed through the production chain. Coupled with the increase in world food prices, the immediate future will make life very difficult for all stratas of society. Recycling will help to cushion the burden. •