Valpak secures enough PRNs for 2008

The UK's largest compliance scheme, which is based in Stratford-upon-Avon, has revealed that it acquired sufficient Packaging Waste Recovery Notes (PRNs) for the year, in addition to a substantial “pool” of carry-over to use in 2009.

The announcement comes following a turbulent few months for the recycling market, in which demand for recovered metal, paper and plastics dropped significantly, leading to fears of a shortage of PRNs and inflated prices. There was also speculation that some schemes may not be able to meet their members' obligations.

As a result, Valpak warned that there would still be challenges in 2009 – claiming that even the first quarter of 2009 was still “uncertain”.

Valpak chief executive Steve Gough said: “Valpak has worked very hard to address what have been extremely tough market conditions with a new robust strategy taking into consideration the uncertainty which remains for 2009.

“As a result of this early activity we believe prices have started to stabilise and even reduce in some circumstances, but we will always have an eye closely watching each material sector in case the general economic conditions throw up a new challenge for 2009 – which is a distinct possibility,” he added.

Mr Gough highlighted the role that PRNs had already played in supporting recycling and said that prudent schemes would ensure they secured PRNs at a price which supported reprocessing while not damaging their customers.

He said: “The global financial crash saw demand fall, prices crash and companies really suffer in harsh economic conditions.

“The PRN system very quickly reacted to this situation and prices for the evidence rose sharply to support the trade of packaging materials collected for recycling. It is this subsidy which replaced the high commodity price and kept the system going,” he added.

Valpak has over 3,000 members and under the packaging waste regulations it is committed to meeting the legal obligations of its members.