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Guriga> Blog> South Africa's Largest Paper Packaging Company is Warning of Rising Prices

South Africa's Largest Paper Packaging Company is Warning of Rising Prices

April 25, 2024
Mpact, Africa's largest paper and plastic packaging business and recycler, is facing high cost pressures, forcing it to charge higher prices. "Macroeconomic uncertainty and ongoing global supply chain constraints have led to higher costs and lower availability of most raw materials and new equipment," said Mpact CEO Strong.
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Due to the crisis in Ukraine, local port restrictions and bad weather in some areas, fruit producers have delayed harvesting and packaging of certain products. Strong said volume growth in fast food restaurants, beverages and home delivery offset declines in fruit packaging, and the current financial performance remains satisfactory. However, since the end of June 2022, input costs have continued to rise, putting further pressure on profit margins. Discussions are ongoing with customers regarding a sales price increase, with the new price to be implemented in October 2022.
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