Netherlands-based label manufacturer VanDerEng is moving to daily pricing for plastic labels and tags, citing geopolitical tensions and sharply rising raw material costs. The measure is intended to safeguard reliable supply to customers, including those in the horticultural sector.
© VanDerEng
According to commercial manager Jeffrey Daalhuizen, conditions on the raw materials market are currently unusually volatile. "We want to be transparent with our customers and keep them informed of the impact of rising costs. To remain cost-neutral and guarantee continuity of supply, we are temporarily working with daily prices. Delivery times remain stable for now."
© VanDerEngRising raw material prices as a result of geopolitical tensions
Price adjustments vary by product and customer situation, and VanDerEng is communicating changes on an individual basis. A key driver of rising costs is the increase in oil prices, partly due to disruptions in international shipping through the Strait of Hormuz. Scarcity of recyclable plastics is also a factor in the current market situation. Once raw material prices stabilise, the company says sales prices will be adjusted accordingly.
Horticulture accounts for the largest share of revenue
VanDerEng has been in operation for more than 130 years and has been producing plastic labels and tags since 1964. The horticultural sector represents approximately 75% of the company's turnover, making it the primary market. For this reason, the company places particular importance on clear communication with growers and propagators.
Alongside its physical product range, VanDerEng is investing in track-and-trace applications, enabling propagation businesses to record and monitor the origin of plant batches with increasing precision.
The company also offers labels on which growers can print their own branding, or on which retailer logos can be applied. According to VanDerEng, demand for data-driven labels within the horticultural sector is growing rapidly.
For more information:
VanDerEng
www.vandereng.nl
[email protected]
