Thursday, January 10, 2013

Recyclable Biodegradable Tableware Is Beated By Plastic Tableware

Price is the Bottlenecks of Biodegradable Dinnerware Industry

As early as in 1999, the China Economic and Trade Commission defined that before the end of 2000 completely phased out the "white pollution" disposable foam plastic dinnerware, the strong policy support give broad market prospects to the green lunch box market. Recently, however, message came from Jiangsu Province said that, more than 40 enterprises in the production of green lunch boxes are struggling to support a few years later, almost all are closed. A manager of a company told reporters, when they begun production, in fact, they see sales of this industry is not good, and there seems to earn little as for prices. So they cannot reproduce, they will lose the cost of once began production. According to the introduction of Mr. Du, they can only rely on a foundry which is the corporation subsistence. They response to the State Economic and Trade Commission's call to invest in the production of green dinnerware, which will benefit the country, it is a promising good thing, but, in fact, there are a lot of bottlenecks in this emerging industry, among which is price.

Biodegradable Trays

Biodegradable Tableware Business Survival Difficulty

Tableware business itself is a product of a very small profit, low-profit products must rely on large-scale production in order to ensure the normal operation of the company as a whole. In this case, the case of a lot of environmentally friendly biodegradable paper plates companies do not receive orders, so they have to make the machine stop and just waiting. In Jiangsu Province, more than 40 enterprises have closed the production of green lunch boxes, and discontinued. In stark contrast to this, in Nanjing, an enterprise production workshop production of disposable foam lunch boxes, but there is full of the roar of the machine, and the workers are busy around. One side is the production of green lunch boxes enterprises have ceased production, closed down, while production of disposable foam lunch boxes business is still booming. The national policy has long banned the production of disposable foam lunch boxes. However, policy and law enforcement is difficult to prevent the production and circulation of foam lunch boxes.

Low Profits in Biodegradable Tableware Industry

According to the survey, we now commonly referred to as green pulp and paperboard lunch boxes, there is a fatal weakness, it is too costly., the wholesale price disposable foam lunch boxes on the market is about 0.06 RMB for each, the cheapest but also environmentally friendly paper tableware wholesale is 0.16 RMB, more than double the price difference. The high price of green lunch boxes not only unprofitable for manufacturers, the wholesalers profit is very low, in the final consumer links, vendors are almost not make much money. If a customer uses three green lunch box packed, vendors should increase the cost of 0.3 RMB. It is because of the high price of green lunch boxes, weak competitiveness, in order to occupy a place in the market, many manufacturers produce green lunch boxes had to jerry-built housing to reduce costs, thus resulting in a vicious cycle. Thus, some enterprises have to stop production, and the production of green lunch boxes closed down.

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