Packaging prices could affect local agro processors, eateries

Disposable coffee Cups
Disposable coffee Cups

Likely increased scarcity of packaging materials for manufactured products could trigger persistent fluctuations in food and beverage availability, a circumstance that can impact on both the agro processing and fast food sectors in countries importing those commodities.

“Supply chain disruptions continue to affect the food and packaging industry, with limited supplies of packaging materials, primarily glass, containerboard, cardboard, and aluminum,” according to a recent report from the US-based Food Institute.

Disposable food packaging containers

Here in Guyana the growth of the agro processing sector has long created a markedly increased demand for corrugate, cardboard, paper and glass containers and container material, a circumstance that has been complicated by ongoing shipping challenges. Here in Guyana, the Stabroek Business is aware of instances in which a scarcity of suitable glass containers, particularly, has resulted in the reduction and in some instances, complete cessation of operations by micro and small agro processing operations on account of scarcity of packaging material. One concern that has been expressed to this newspaper by proprietors of some of these operations who work with mostly razor-thin budgets is that the eventual normalization of supplies of packaging material is likely to be attended by price increases which that could further erode what they say are their already modest profit margins.

The Stabroek Business’ probe of the food industry, meanwhile, has revealed that the growth of the ‘eat out’ culture and the attendant demand for ‘take away’ meals has also pushed up the demand for fast food containers and in many instances triggered increased prices for take –away purchases.

At some local takeaways establishment proprietors have confirmed that higher demand for corrugate, cardboard, and paper, due, apparently, to ongoing shipping-related challeng-es is also threatening the viability of some local fast food and takeaway establishments.