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The Hidden Costs of Packaging: EPR and Your Produce Business

Writer: Andrea TesliaAndrea Teslia

As the produce industry prepares for the Canadian Produce Marketing Association's (CPMA) 2025 Convention and Trade Show in Montreal (April 8–10), one issue worth watching is Extended Producer Responsibility (EPR) and how it could reshape packaging decisions and supply chain costs.


As Extended Producer Responsibility (EPR) programs continue to expand across Canada, produce producers and growers should be paying close attention to how these policies may impact their day-to-day operations. EPR shifts the financial and operational responsibility for packaging waste management onto those who introduce packaging into the market—meaning that businesses packaging and selling fresh fruits and vegetables are already, or could soon be, facing increased costs and new compliance requirements.


While it remains to be seen how prominently EPR will feature at the upcoming CPMA 2025 Convention and Trade Show in Montreal next month, we hope this issue will be part of the conversation. With growing regulatory complexity and uncertainty in North American supply chains, it’s critical that produce producers begin planning ahead—even if they are not directly involved in packaging decisions today.


What Does EPR Mean for Produce Producers?

EPR programs are designed to make producers financially responsible for the end-of-life management of their packaging materials. This means that companies (brand owners, distributors and importers) packaging produce in plastic clamshells, netting, fibre trays, etc. are obligated to pay additional fees based on the recyclability and volume of these materials.

Some key areas of impact include:

  • Retailer and Market Pressures
    • Large grocery chains and retailers often push compliance costs onto suppliers, which could lead to higher costs for farmers and packers.

    • EPR fees make certain packaging types more expensive, retailers may demand changes in materials or packaging formats.

  • Increased Costs for Packaging Compliance
    • If not already compliant, produce businesses may be required to register, report and pay EPR fees for all its packaging materials, with increasing costs for harder-to-recycle materials.

    • Businesses will also need to track and report packaging use, adding administrative complexity.

  • Challenges with Recyclability and Recovery
    • Many types of produce packaging, such as poly bags and netting, are not widely accepted in municipal recycling programs.

    • As EPR fees rise for less-recyclable materials, produce producers may need to redesign packaging to be more compatible with local recycling systems.

    • Consumers are demanding eco-friendly packaging and recyclability from business. Don’t let this be the reason you keep or lose a segment of consumers.

    (Source: Agriculture and Agri-Food Canada. (2023). Canadian environmental sustainability shopping habits. Government of Canada. https://agriculture.canada.ca/en/sector/consumer-trends-and-behaviours/canadian-environmental-sustainability-shopping-habits)
    (Source: Agriculture and Agri-Food Canada. (2023). Canadian environmental sustainability shopping habits. Government of Canada. https://agriculture.canada.ca/en/sector/consumer-trends-and-behaviours/canadian-environmental-sustainability-shopping-habits)

A Critical Discussion for the Industry

Even if EPR isn’t widely covered at CPMA 2025, it’s an issue that produce businesses should start preparing for now. Regulations are evolving quickly across provinces, and those who take a proactive approach will be in a stronger position to navigate upcoming changes.


For organizations like the CPMA and its members advocacy will be key. Industry-wide collaboration on standardized, sustainable packaging solutions could also help lower costs and create a more level playing field. Whether this topic is raised at the conference or not, it’s a conversation worth having.


Get in touch today.



 
 
 
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