How Pallet Recycling Works: From Pickup to Reuse

Every year, an estimated 2 billion pallets are in use across the United States. Inevitably, pallets break, wear out, and accumulate. But unlike many industrial products, pallets are remarkably recyclable. Here's how the process works from start to finish.

Step 1: Collection and Pickup

The recycling cycle begins when businesses accumulate pallets they no longer need — whether damaged, surplus, or simply the wrong size. A pallet recycler like Stockton Pallet Co. arranges pickup, often at no cost to the business, especially for larger quantities.

We serve the Central Valley with our own fleet, making regular pickup runs to warehouses, distribution centers, manufacturers, and retail locations throughout California, Nevada, and Oregon.

Step 2: Sorting and Inspection

Once pallets arrive at our yard, every single one gets inspected by hand. This is where the grading process begins:

Step 3: Repair and Refurbishment

Our repair team replaces broken boards, resets popped nails, and reinforces weak spots. A pallet that arrives with two cracked deck boards can be restored to Grade A condition in minutes. The repaired boards come from dismantled pallets, keeping the material loop tight.

Step 4: Grinding and Mulch

Pallets that can't be repaired still don't go to waste. They're fed through an industrial grinder and converted into:

Step 5: Back in Circulation

Repaired and graded pallets re-enter the supply chain, serving new customers for new shipments. A single pallet can go through this cycle multiple times before finally being ground down — extending the useful life of the original lumber by years.

The Numbers

At Stockton Pallet Co., we maintain a 99% recycling rate. That means for every 100 pallets that come into our yard, only one or fewer end up in a landfill — and usually only because of contamination (chemicals, food residue) that makes the wood unsuitable for any reuse.

Why It Matters

Pallet recycling keeps millions of tons of wood out of landfills each year. It reduces the demand for new lumber, conserves forests, and lowers the carbon footprint of the entire supply chain. When you choose recycled pallets, you're participating in one of the most efficient circular economies in industrial materials.