New research from the renewable materials company Stora Enso sheds light on the importance of packaging in achieving greater food systems sustainability. The report entitled “Food packaging for better food systems” identifies 13 impact opportunities for the food packaging value chain, powered by innovation and collaboration, to unlock greater global climate, biodiversity, and social progress. Fiber-based packaging is an enabler of sustainable food systems due in part to its renewable base material, recyclability, and reliability in hygienic food protection. In the report, Stora Enso envisions a new developmental role for packaging to combat the hidden socioeconomic costs created by our food systems. This includes strengthening food system sustainability by advancing opportunities in areas including supporting healthy diets, minimizing food loss, and developing new compostable or waste-based materials. Tiina Pursula, SVP Sustainability commented: “Our food systems play a crucial role in securing a circular, biodiversity- and climate-positive future. We need to look at these systems holistically and consider how can we contribute to food system transformation, such as healthier, plant-based foods and food waste reduction. This way, we can drastically change the way we produce, transport, and consume food.”

Huhtamaki is planning to consolidate the production footprint in China in the Fiber Foodservice Europe-Asia-Oceania segment and will close its production sites in Tianjin and Shanghai by the end of Q2 2024. The production will be transferred to the manufacturing site in Guangzhou. Additionally, Huhtamaki continues production at the site in Xuzhou. The decision affects 154 employees in the two sites. Huhtamaki will support the impacted employees and provide assistance in finding new employment. The aim of the consolidation is to optimize the manufacturing footprint, improve the competitiveness and strengthen the foundation for future growth in the region. The announced change is part of Huhtamaki’s program to accelerate strategy implementation, announced in November 2023, expected to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately EUR 100 million over the next three years.

For the full year, revenue (continuing operations) declined 2 per cent on a constant currency basis. There was a positive contribution from European corrugated box volumes (£22 million) and an incremental c. nine month contribution from Europac (which was acquired in mid January 2019) of £376 million, offset in Europe by reduced pricing of external paper, recyclate and box prices (together down £285 million year on year), and a decline in other volumes particularly due to increased paper and recyclate integration and reduced volumes of corrugated sheet (down £175 million). The reduced sales price across the European operations was driven principally by a fall in testliner and kraftliner pricing, which partly fed through into corrugated packaging pricing progressively through the year as indexed contracts adjusted for the market price of paper, the main input cost. The North America business also recorded a fall in revenue (down £63 million), principally reflecting lower paper prices into the export market. Operating profit improved 6 per cent (constant currency) to £455 million (2018/19: £427 million).