Abstract: A product packaging system comprises a plurality of product sources (2, 4, 6) delivering product to a final collating and packaging line (10). The output from each machine is delivered by separate conveying means (8) delivering the products directly into a collating conveyor (20) which in turn delivers the collated products to a packaging line. The collating conveyor comprising an endless conveyor carrying a plurality of compartments, each compartment receiving from said conveying means products to be packaged. The compartments are configured to enable their sizes to be changed, and the endless conveyor comprises a track arranged in a vertical loop and a plurality of product supporting members mounted for movement along the track, each supporting member being driven along the track and controllable independently of the other supporting members.