In late December, Defra unveiled updated illustrative base fees for EPR, providing a definitive figure instead of a range.
The Food and Drink Federation (FDF) expressed satisfaction, stating it was ‘good to see the concerns of business listened to’.
According to Jim Bligh, director of corporate affairs and packaging at The Food and Drink Federation, “The new Extended Producer Responsibility (EPR) regulations could be a game changer for the UK and our flatlining recycling rates. As an industry, food and drink manufacturers are embracing EPR and the opportunity to revolutionise the UK’s recycling system, while ensuring we have access to the recycled content we need to meet our own sustainability goals. But, this comes with a huge cost for business, with UK food and drink manufacturers committing more than £1bn a year to EPR from next October.”
Bligh further pointed out, “Our members negotiate pricing with retailers up to a year in advance. Until now they’ve been doing this without clarity from government on the EPR fees they’ll pay next year, and, as a result, without clarity on the actual cost of their products. DEFRA’s confirmation of more specific fee estimates is therefore welcome, as it will give businesses the certainty they urgently need about the costs they’ll be facing from next year. Now that we have this clarity, it’s vital that DEFRA works with producers – who are now legally responsible for improving the UK’s recycling rates – to ensure that this multi-billion-pound investment produces real results for the nation.”
This new clarity not only aids food and drink manufacturers in budgeting but also aligns well with emerging food and drink sustainability practices and the demand for sustainable packaging. As the sector evolves, understanding food and drink consumer trends becomes increasingly crucial for effective food and drink marketing.