Fruit and vegetable growers and marketers face rising costs when putting their products on the market. One of the inputs with the biggest price increase is packaging materials, including cardboard, plastic or wood. This is the result of high energy and fuel costs and severe supply problems, partly due to the high cost of shipping due to a shortage of containers.
"Timber supply problems have caused its prices to triple," said Alberto Palmí, director of the Spanish Federation of Wood Packaging and Components (FEDEMCO). "We have never seen such a situation before. In addition to rising raw material costs, the costs of electricity, cutting processing, and mechanical parts are also rising. Wood packaging manufacturers have been forced to raise prices. They have already assumed a large part of these cost overruns. In fact, some packaging companies continue to bear cost overruns because of fear of losing customers."
According to Alberto Palmí, one of the main reasons for the wood packaging supply problem is that “countries such as the United States and China made a lot of purchases in Europe a few months ago. In addition, a small portion of the wood processed in Spain is used in the manufacture of containers and pallets. I come from Brazil, but for several months, due to the high cost of shipping, almost nothing has arrived from this country. In fact, freight costs are higher than that of goods transported in containers. In any case, the lack of containers makes it impossible to load goods."
Pallet manufacturers are dealing with larger supply issues. "Wood used for pallets is now more expensive than wood used for containers, and traditionally the opposite has been the case. Some factories run out of wood and the price of wood continues to rise. At what price should fruits and vegetables be sold to remain profitable?" Alberto Palmi said.
"However, despite preparations for timber stocks, given that Spanish fruit (including citrus and persimmon) exports have declined compared to the same period last year, the current demand for packaging containers is generally low, especially for overseas destinations. , I usually prefer this type of packaging because it can withstand humidity better and is therefore conducive to the preservation of fruits and vegetables. However, we are confident that the market will stabilize again because it will always be the case," the head of FEDEMCO Say.
More information: Alberto Palmí Alcober FEDEMCO Tel: 34 96 349 57 13 direccion@fedemco.com www.fedemco.com
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