"Increased costs to procure optimal feedstock for the processors. We have identified a number of significant sources of optimal feedstock which can be delivered directly to our Niagara Falls plant, without the need for pre-processing at our recycling center. During the quarter, we processed a significant amount of this feedstock, which is at a higher cost than that which requires pre-processing.
Increased freight costs to receive feedstock. Much of the optimal feedstock discussed above came from suppliers that are not in close proximity to our Niagara Falls plant. As a result of this, we incurred significantly higher transportation costs."
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