Speciality Food October 2024

6 @specialityfood There have been swells of confusion in the food and drink and packaging industries, as businesses try to keep up with new regulations and processes coming down the line, such as the Deposit Return Scheme (DRS). Less discussed is Extended Producer Responsibility (EPR) – set to impact numerous UK businesses, which will be expected to report more data around the waste they generate, and to pay fees for management of that waste. While there is still much to learn, many in industry welcome the incoming changes for waste handling in Britain, including The Food and Drink Federation. Director of corporate affairs, JimBligh, said manufacturers on the whole support the government’s zero waste goal, and are committed to a cleaner environment. He said the newly issued base fees for the scheme will help them “take more responsibility for packaging”, and plan accordingly for predicted 2025 costs. “With EPR expected to cost at least £1.4 billion in 2025, it’s crucial that funds are used to improve recycling infrastructure,” he added. “Everyone must work together to ensure EPR drives value, boosts recycling rates, and fosters a circular economy. DEFRA should now empower producers to manage the scheme, encouraging investment, green jobs and innovation in packaging.” WHAT IS EPR? EPR affects UK businesses importing or supplying packaging within the UK – including packaging which is filled at the point of sale, such as food containers and coffee cups. These businesses will need to collect and report data on this packaging, including information about the type of packaging, whether it is primary, secondary, shipment or tertiary, its weight, and the material it is made from. Businesses are also required to submit ‘nation data’ (detailing where packaging is being supplied and discarded in the UK) if they supply filled or empty packaging directly to consumers or small organisations in the UK, hire or What is EPR and howwill it affect food and drink businesses? Speciality Food breaks down the jargon around Extended Producer Responsibility, highlighting the key dates you need to know loan reusable packaging, own an online business allowing non-UK businesses to sell empty packaging and packaged goods into Britain, or import packaged goods into the UK, and discard the packaging. They may need to pay a waste management fee, scheme administrative costs, charges to the environmental regulator, and get PRNS (packaging waste recycling notes) to meet their obligations. WHO IS AFFECTED BY EPR? Any business operating under its own brand and trademark will be impacted. Those providing a white label service for a third party within the UK, will not. The rules apply if you are importing goods from outside the UK, with the intention to supply them here, even if you discard the packaging before selling. You don’t need to take any action if you are importing packaging or packaged products on behalf of another company which will later add its own branding. Online businesses selling packaged products from outside the UK within Britain are impacted, but e-commerce sites acting as a third party for UK producers within the UK, are out of scope. WHAT IS THE IMPACT ON LARGE ORGANISATIONS? Businesses will be classed as a large organisation if they have a turnover of more than £2 million per annum, and are responsible for supplying or importing more than 50 tonnes of packaging in the UK. Large organisations may need to act if they supply packaged goods to the UK market under their own brand, package goods for themselves or another organisation, import products in packaging, own an online marketplace, hire or loan out reusable packaging, or supply empty packaging. They may need to take additional action if they pay or license another company to produce branded packaged goods to be sold under their name, to pack branded goods that will be sold under their brand name, place their branded goods on the market in the UK, or important branded packaged goods on their behalf. When do businesses need to start collecting and submitting EPR data? Those businesses impacted should have recorded data on packaging from 2023 onwards. Packaging data must be collected and reported by individual businesses and groups (not charities) with an annual turnover of £1 million or more based on most recent accounts, and those responsible for importing or supplying over 25 tonnes of packaging into the UK market during the previous year. For 2023 data sets, businesses should base their annual turnover on figures up to 7th April, 2023, and packaging weight on the amount supplied or imported in the 2022 calendar year. Data sets for 2024 should be based on a business’s turnover up to 7th April 2024, and packaging weight based on the weight supplied or imported in 2023. All businesses should have their 2023 data prepared, though small organisations are not required to report it. Their 2024 data must be submitted by 1st April, 2025. Under new rules this year, January to June data from this year should be reported by large organisations before 1st October 2024, and July to December data from January 2025, with a deadline of 1st April, 2025. HOWMUCH IS EPR AND WHEN DO BUSINESSES HAVE TO PAY IT? Currently payments are deferred for a year, due from 1st April, 2025, taking into account packaging supplied or filled in the preceding calendar year. At the time of publishing fee rates won’t be known for the 2025/26 period until 1st April, 2025. Illustrative fees range from £245 to £655 per tonne of aluminium, from £185 to £350 per tonne for paper or board, and £355 to £610 per tonne of plastic.