Inflation and material shortages hit industry

(Photo courtesy Brandable Box; Source Unsplash)

Produce shippers and packaging suppliers have faced shortages and higher prices of some packaging materials.

Produce shippers and packaging suppliers were asked the question, “How have raw material shortages affected your packaging procedures or plans?”

“The areas we’ve seen the largest shortages are in paper production and pallets,” said Chuck Sinks, president of sales and marketing for Yakima, Wash.-based Sage Fruit Co. “The paper shortage hindered our late season paper tote bag program. We’ll re-start that again with the start of new crop. “

The tote situation has been a “nightmare,” agreed Kristi Harris, brand manager for Honeybear Brands, Elgin, Minn. “First it was paper/fire, then glue, now ink.”

“From a packaging supplier standpoint, this has been a huge issue,” said Steve Greenfield, director of sales and marketing for NNZ Inc., Lawrenceville, Ga.

“It is not really popular to have to announce price increases on products on almost a monthly basis.  We also have had to train our customers to order much earlier than in the past as both material and container shortages are greatly affecting lead times.”

One way that shippers have addressed is adjusting inventory strategies.

“We have increased inventory stocks to 90-to-120-day quantities,” said Andrew Hare, co-founder and general manager of Charleston, S.C.-based Vertical Roots.

“We’ve had to plan our packaging purchases further out,” said John Paap, manager at Jac. Vandenberg Inc., Tarrytown, N.Y.

Raw materials have been a true test for the supply chain over the past 16 months because of the pandemic, said Jeff Watkin, director of marketing for Sev-Rend, Collinsville, Ill.

“We are now seeing the ripple effect from manufacturing having short-term shutdowns causing shortages and price increases,” he said. “To curve this, we have been working closely with our clients, stressing the need to plan and forecast as far out as possible to ensure we hit their deadlines for the product to be to market on time.”

 

Latest News

How new research could prevent frost damage in orchards
How new research could prevent frost damage in orchards

In this podcast episode, Advanced Agriscience's Collin Juurakko shares interesting discoveries he's made about how frost crystals form and how that lead to a potential solution for tree-fruit growers across the globe.

Cool Creations previews new products at AWG show
Cool Creations previews new products at AWG show

North Kansas City, Mo.-based Cool Creations LLC had two new products to show off at the Associated Wholesale Grocers' seventh annual Innovation Showcase, March 25-26.

Dole, Fresh Express nix sale of fresh vegetables division
Dole, Fresh Express nix sale of fresh vegetables division

Following Department of Justice concerns about competition in the packaged salad market, the companies have abandoned the proposed $308 million deal.

Fresh Del Monte named to most trusted companies list
Fresh Del Monte named to most trusted companies list

Fresh Del Monte is among the honorees on the Most Trustworthy Companies in America 2024 list, recognized for a commitment to quality, sustainability and innovation in fresh produce.

Improved conditions for West Mexico produce may arrive with spring
Improved conditions for West Mexico produce may arrive with spring

West Mexico growers faced a tough fall/winter season, but distributors believe things are looking up for spring with increased supplies and more reasonable prices.

What’s next for retail foodservice: Retailers dish up insights in free webinar
What’s next for retail foodservice: Retailers dish up insights in free webinar

"Impact Retail Foodservice 2024" will gather industry experts to discuss opportunities and challenges, as well as share insights for driving growth in the year ahead in one of the hottest departments in grocery.