Cost pressures building to make new seed boxes more expensive
With planting season in full swing, it may feel premature to consider any seed box purchases. But waiting for box returns to make that assessment could prove costly. A major price increase is likely in the works.
Tariffs, global trade disputes, armed conflicts in the Middle East, domestic economic uncertainty and other world events have pushed prices up across the board. Whether through higher mortgage interest rates, gas pump sticker shock or eating in rather than dining out, consumers feel the squeeze. Unfortunately, even with a potentially improving situation in the Middle East, supply chain disruptions will persist, and the price increases we’re all experiencing will continue, likely through the end of the year and beyond.
A price increase is a consumer problem not a business problem, right?
While many seed companies like you absorbed global price impacts rather than passing them onto customers, your suppliers, including seed box manufacturers, are getting pinched. They’ve eaten input cost increases, fuel surcharges and other fees, which is becoming unsustainable.
What’s the Strait of Hormuz have to do with a seed box price increase?
Oil seems to be essential to most industries. Agriculture included. We live in a globally connected society. HDPE resin, the plastic material seed boxes are made from, is a petroleum-based product. Typically, new plastic is cheaper than recycled plastic. But with global oil prices going up, the cost of HDPE resin is too. Therefore, your seed box supplier’s costs are going up.
Our sources suggest new seed box prices are increasing about 30% in the next 30 days due to higher resin costs. This looks highly likely based on prices for HDPE re-grind, the feedstock for recycled plastic resin, which has moved up 10-15% since the bombing of Iran.
Mitigating Seed Box Costs
With a new seed box price increase, alternatives to maintain or expand your seed box fleet should start to look pretty attractive. A refurbished used box, Certified Pre-Owned Seed Box, or matching a new top ring to your own existing orphan base presents an even greater value over a new seed box in period of rising crude oil prices.
Don’t wait until the end of year to make your box purchase. Now is the time to make a move on the secondary market to lock in pricing.
Book used and CPO box orders now for delivery this summer. Our used boxes are washed, inspected and fully repaired to exacting standards by certified DVT welders. Our Certified Pre-Owned seed boxes pair new OEM top rings and lids with refurbished bases. The result is a like-new box at a used-box price.
Used boxes start at $299 with a lid. CPO boxes start at $379 including a lid. Volume discounts available.