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Egg Carton Manufacturers Respond to Demand

04/30/2020

The precipitous decline in egg demand by the food service industry has diverted shell eggs to the retail market.  This has placed a burden on carton manufacturers who had not planned for an unprecedented increase in short-term demand.

 

Dolco Packaging marshalled their resources and together with their parent company, Tekni-Plex, achieved multi-fold increases in production in both March and April.  This required a coordinated effort among the various U.S. plants producing Dolco Packaging.  Adaptations and innovations to satisfy demand include:-

  • Placing all plants on a three shift, seven-day schedule of operation.  This has required both an increase in base pay and additional overtime costs.  Fortunately, the Dolco workforce has responded to the emergency and to date only one employee has been diagnosed with COVID-19.
  •  UPC labels are no longer applied to cartons in order to increase the production rate. They are now printed on the cartons requiring greater accuracy and precision in application.
  • Existing artwork on cartons has been simplified, in many cases with the cooperation of producers, to enhance the rate of production.  Many lines have been converted with added flexibility through a substantial investment in additional printers in all plant locations.
  • Special packs have been eliminated from the range in order to make optimal use of available extrusion and printing capacity.  In response to demand, Dolco is producing a higher proportion of 18-egg packs.
  • Increased production has not resulted in lowering quality standards

 

It is apparent that all carton manufacturers are optimizing their resources to meet the demands of the industry.  Clearly producers must provide manufacturers with as much lead time as possible and show restraint in changing orders or requesting new artwork.  Some producers are consolidating brands to simplify ordering and inventory.  There does not appear to be a decline in medium-term orders, so the pressure on manufacturers will continue possibly through mid-summer depending on the reemergence of the food service sector.

 

Dolco, in particular, has expressed gratitude to their customers for understanding and cooperation through the past two difficult months.