Regional press ‘blind-sided’ by paper price hikes
REGIONAL publishers are facing a new financial pressure and, in the case if smaller less-viable newspapers, potential closures after it was revealed that the cost of newsprint in Australia could jump by up to 85 per cent.
The price hikes from Australia’s last remaining paper-producing plant are expected to hit regional newspapers on July 1 – and the cost increase is worse than the industry had feared.
Some printers have reported price jumps of 80 per cent over previous rates, as well as orders arriving half-filled.
Regional media representatives have asked the federal government for assistance to prevent newsroom closures and handle the rising prices. Country Press Australia (CPA), an industry association representing 190 regional papers, has made urgent contact with government representatives since Easter.
CPA president Andrew Manuel owns a network of local newspapers in South Australia.
“We’ve got six titles and any sort of price increase and price pressure which makes it harder to balance the budget is always hard,” Mr Manuel said.
“We’ve had a lot of headwinds these last couple of years as publishers. The COVID pandemic really affected business... and we’ve been battling against the creep towards digital and fighting for our business model.
“We’ve seen some positive green shoots in that arena with the federal government’s digital platform reforms... and some good support with the federal and state government with advertising.
“Now, just when I thought we were about to get going and we were at the end of Covid... we have this big looming newsprint cost increase.”
Mr Manuel said he had initially been informed that newsprint would rise by 20 to 30 per cent.
“I thought that was fair and reasonable... but now it’s looking like it’s going to be a lot higher, with some publishers saying 80 to 85 per cent,” he said.
“It’s kind of like a supply and demand issue. I believe there’s issues offshore with international mills having struggles to provide newsprint.
“If that (rate) gets passed on, some publishers will reassess whether they’re viable. During COVID a lot of publishers were just treading water.
“With the price hike, the concern is ‘how long?’ Just for one year or will it be ongoing? Is this the new benchmark now?
“Perhaps some publishers will have to put up their cover price to match the cost. Some will ultimately say they can’t make it work and they’ll have to close.”
After the ‘blind-siding’ news, Mr Manuel, among other publishers, has asked government for an emergency relief package – not dissimilar to the recent fuel excise cut.