Retailers urged to act now to cash in on sky high cardboard prices

Prices are at their highest level for some 20 years with dry bales going for up to £138 a tonne at UK mills in July – 60% up on January levels.

Jason Smith, managing director of PHS Wastekit, which supplies cardboard baling machines, said: “The pandemic has seen demand for cardboard rocket so businesses have a real opportunity to open up a new revenue stream from their cardboard waste as a result.

“I find it astonishing that more businesses don’t see the potential in their waste especially as it costs them so much to dispose of it.

Baled waste cardboard, like boxes and packaging, can be sold on to recycling companies, bringing in new revenue for the business, whilst reducing waste collection costs and landfill fees.”

A decline in the use of paper during lockdowns is thought to have caused a shortage – and subsequent increase in price – of the raw recycled materials used to produce cardboard.

Another factor in the price rise is an increase in the demand for cardboard packaging as online shopping has surged during the Covid crisis.

“Selling waste cardboard is beneficial from an environmental and economic perspective. The revenue stream businesses can create, and the savings they make, supports their bottom line and boosts our economy.

“From an environmental point of view, there will be fewer waste collections, reduced fuel costs and more quality cardboard back into our recycling system to help supply. It’s a win-win situation.

“Unfortunately, many businesses are still overlooking their waste streams and processes.

“Businesses need to start accessing their ancillary costs in the same way as they do their core costs.

“A simple cost benefit analysis will quickly show up unnecessary costs and ways to generate revenue or reduce costs.

“There are almost always savings to be made in our experience, whether it’s reducing the labour costs associated with waste management or cutting down waste collections and transport costs.”