Raw material costs: the battle continues

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Related tags: Cost

Packaging producers continue to battle raw material cost increases, with the issue cited as the major concern of even paper-based suppliers by...

Packaging producers continue to battle raw material cost increases, with the issue cited as the major concern of even paper-based suppliers by international paper and packaging firm Mondi.

"The main pressure we're facing is raw material cost increases," said Stephen Cawdell, technical manager at Mondi, Corrugated UK, which supplies shelf-ready packaging, reporting double digit growth in paper costs since 2007.

Elsewhere, metal packaging supplier Impress, which has warned that it would need to pass on cost increases of 10-15% in the coming months, said retailers should take a hit too.

"Food processors will have to pass the increased costs through, just as the steel suppliers are passing theirs through to us," said Tim Clarke, commercial director, Impress food division.

"It is never an easy process and we do not expect any food processor to accept these increases lightly, just as we are not accepting them lightly from our suppliers. However, it is not only metal; other packaging materials are affected by rising oil and energy prices."

He defended metal packaging on environmental grounds, praising its high recycling rate and its ability to be recycled infinitely.

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