Asda is still shifting cardboard packaging through to its reprocesssors but finding operations commercially difficult amid the sharp drop in material prices.
Packaging manager Shane Monkman told MRW: We have no problem whatsoever shifting cardboard through the system. We have an incumbent supplier and secure contract with that supplier.
But we are finding it commercially difficult. This is the biggest challenge we face because the price drop is affecting our revenue significantly. But we are not piling up materials around the country in warehouses.
Asda has seven distribution centres across the UK. Each centre contains baling equipment for card and plastic. It also takes in animal-by-products and scrap metal. All store waste gets sorted out and sent on to reprocessors who then pay Asda for the materials.
I believe that the market will open up in April/May of next year, said Monkman.
A lot of people we deal with have said that this is the worst situation in the market they have seen in 30 years.
We are starting to see a movement in prices in virgin plastic and recycled plastic but this has yet to materialise with finished cardboard and paper.
Image: Asda store