Why are the top-up payments different for plastic jugs and paper cartons?
Top-up payments are designed to stabilize the returns Recycling Authorities receive for the material they collect by guaranteeing prices for HDPE and polycoat. The guaranteed (or ‘target’) prices are set in relation to recent market prices for the materials. The HDPE and polycoat markets are very different, with prices reflecting the laws of supply and demand. Historically, HDPE prices have been significantly higher than polycoat prices.