Pinnacle ups imports as tariff buffer

Pinnacle Feeds, the island’s leading livestock and poultry feed manufacturer, has secured a two-month supply of imported grain in a pre-emptive move taken to cushion local farmers against the impact of proposed US tariffs. 

Rakeesh Bernard, managing director of Roberts Manufacturing, the parent company of Pinnacle, said on Thursday, “When we heard the tariffs were potentially coming, we maximised our purchasing. That’s not something we usually do because grain prices fluctuate, but we decided to double up on incoming grain to ensure that if the tariffs were implemented, we’d have a cushion.”

That decision resulted in a 50 per cent increase in forward-purchased inventory—enough, Bernard estimates, to sustain feed production for roughly two months. 

“As feed consumption rises, that buffer may shorten, but two months is a safe estimate. It gives us time to assess the market and plan our next steps,” he added.

The proposed US tariffs on foreign goods would significantly raise production costs for US farmers and ultimately lead to an increase in the price of exports of corn, soybeans, and wheat, which would have adverse consequences for Caribbean feed manufacturers.

Since feed manufacturers like Pinnacle depend on bulk imports from US grain suppliers, any increase in cost would ripple through the local food system, pressuring local poultry and pork producers—and ultimately leading to increased prices for consumers.

“It’s not just about tariffs,” Bernard cautioned. “It’s the unpredictability. One day you’re told tariffs are coming, the next there’s a pause. It’s very difficult to plan responsibly in that environment.”

Despite the potential for disruption, Pinnacle has opted not to formally alert farmers that prices may go up—a deliberate move aimed at preventing undue panic among the farming community. 

“We didn’t want to sound the alarm when we had already created a buffer. Even our US suppliers haven’t been very clear on the details, so we’re all in a bit of a holding pattern,” Bernard said.

Still, the company is actively exploring opportunities to boost inventory during the temporary 90-day pause on proposed tariffs announced by the US president.

“If there’s an opportunity to pull another large shipment and we have the storage capacity, we’ll absolutely take it,” Bernard said.

While Pinnacle is prepared to absorb some cost increases in the short term, he said, prolonged or steep tariffs would eventually require making difficult decisions. 

“It’s not our strategy to pass on costs unnecessarily. But if it becomes exorbitant, as the tariff was shaping up to be, then price increases could become unavoidable.

“We’re doing everything we can to delay any impact for as long as possible,” Bernard said. (SZB)