Sustainable Packaging Solutions Save Money for Exporters

In 2020, 2.8 million tons of corrugated cardboard boxes were produced in Mexico (INEGI). For each ton of cardboard, 17 trees are cut and transformed into boxes. 

Climate change is here and we need an “all-hands-on-deck” approach. Each year, we can observe more natural disasters, such as flooding and drought, which especially affects the agricultural sector. This is more than enough reason for the agribusiness sector to strongly participate in finding sustainable solutions.

Mexico´s agro sector has been moving toward more sustainable and social practices. One of the necessary issues to tackle is packaging, as at the moment there is still a very large amount of carton and plastic being used one single time, shipped, and if lucky, it is recycled at the destination. Just to give an example: if fruit gets shipped in a sea container in 4kg boxes, it is important that new carton is being used to endure the land and sea conditions. Each container then has 5,280 of these boxes, which implies plenty of trees being chopped.

If we start changing to circular and reusable packaging options, we can save these 17 trees, water and electricity, while reducing our carbon footprint. When carton boxes are exported, they leave the country, which means that for every new export shipment from Mexico to overseas markets, new carton has to be purchased again. 

What Is the Circular Economy?

The circular economy is a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended.

The four main concepts of the circular economy can be defined as follows:

A circular economy favors activities that preserve value in the form of energy, labor, and materials. This means designing for durability, reuse, remanufacturing, and recycling to keep products, components, and materials circulating in the economy.

At the moment, the main question is how can we transit from our actual packaging systems to a system of circular economy.

The Green Deal in Europe requires changes by 2030 in packaging in all industries and other international markets are sure to follow. We have been following the sustainable packaging options in the market; for example, bioplastic which is made from orange peels, sounds like an interesting option. However, as happens with many bioplastic options, the cost and performance of these boxes cannot match conventional plastics.

Replacement of carton is an obvious solution, however, if it is only replaced with plastic that has to be shipped with each container, the sustainable effect remains questionable.

Sustainable Packaging Solutions

Several sustainable options are already being used in the market, such as IFCO and Europool. Many supermarkets in Europe have already implemented the Europool system, which are collapsible plastic trays and pallets that are returnable, reusable and circular. The importer or distribution center ships the fruits and vegetables in the Europool trays and pallets to the supermarket and the last one returns the folding tracks back to the distribution center, which are then sanitized to be ready to be used again. This system has reduced the carbon footprint in the fresh food industry as well as lowered food waste. The chain is not completed, however, as overseas markets still ship in carton boxes to Europe, which opens the door to sustainable packaging solutions in origin, such as Latin America, Africa and Asia. 

New Circular and Sustainable Solutions for Overseas Suppliers

We interviewed Diana Peñuela of Newwen, a daughter enterprise of Van Vliet Containers with extensive experience and a long history as a market leader in packaging in the horticulture sector. Newwen has been developing sustainable boxes for the fresh food industry as well.  

1. Q: What sustainable packaging solutions does Newwen offer for fresh food exporters?

A: Newwen offers multi-use packaging that is circular while retaining residual value and is equipped with digital technology for tracking movements and locations. These boxes are appropriate for all sectors. These packaging solutions are made of the safe and strong Polypropylene.

2. Q: How sustainable is this option?

A: Our packaging solutions are 100% recyclable because they are produced from mono materials. These can be reused 20 to 25 times, which ensures that no new raw materials are used. Therefore, our products contribute to a 100% circular economy.

3. Q: What are the cost savings by using this type of packaging?

A: Using multiple-use solutions requires an investment compared to single-use. Single-use is a recurring cost. From several business cases we have made with customers, we show as a result that in the first year savings of 20% on packaging is obtained and in the second year, savings are up to 70%. Every supply chain is different, therefore it is important to make the analysis per company or per product.

4. Q: Is this packaging already being used? 

A: Our multi-use circular and sustainable boxes are already being used in the flower sector in Europe. Pilots have been implemented with products such as limes from South America to Europe. Results are positive and implementation will start in 4Q23 - 1Q24.

Currently, several pilots are also being programmed with products such as bananas and avocados.

As Diana says: With the right materials, technology, smart systems and products that are economically viable, we can accelerate the transition to a 100% sustainable society. 

Sustainability Can Be an Important Money Saver

Sending with each shipment new carton boxes implies that money is thrown away with each box. Each carton box currently costs approximately US$0.60, so it is a quick calculation that a container of 5,280 boxes with 4kgo of fresh fruit costs the exporter more than US$3,000 per container. If with reusable and sustainable boxes we can reduce packaging costs and reduce the carbon footprint, the exporter will be more competitive while saving money and contributing to the transition to a sustainable society.