Food prices continue to rise due to the EPR

By: Trademagazin Date: 2023. 06. 15. 20:03

Food prices could increase by up to 4 percent due to the introduction of extended producer responsibility and the new industry burden for packaging materials. Starting from July 1st, in addition to the previous product fees, a new and significantly higher cost item is estimated to amount to approximately 120 billion Hungarian forints for the food industry, representing nearly 60 percent of the sector’s 2021 results.

Each player will try to pass on the cost increase, resulting in noticeable price hikes for consumers as well. The concerned industry is currently trying to postpone the implementation of the legislation, but hopes are low as the upcoming regulations do not reflect the points raised during previous consultations. The new and burdensome waste management regulation, particularly the extended producer responsibility (EPR) framework, poses a significant challenge for the domestic food industry. Under this system, users of packaging materials will be required to pay fees to the MOHU MOL Waste Management Company, which is part of the Mol Group.

The EPR fee represents a new burden for processors, while the previous packaging manufacturer and importer obligations remain unchanged. Moreover, the EPR fee to be paid by the food industry is significantly higher than the existing product fees that were applied throughout the supply chain.

The cost increase is indeed substantial. According to calculations made by the sector, several examples highlight the magnitude of the changes. For instance, the well-known 720-milliliter preserving jar, including the lid and label, previously incurred a fee of 5 Hungarian forints, which will rise to 30 forints from July. This widely used glass container weighs 290 grams, and technological developments cannot reduce its weight. The fee for each sour cream or yogurt cup, previously amounting to 50-60 fillérs, will increase to 2.5 forints in two weeks’ time.