Chief Executive Officer of the Barbados Agricultural Society James Paul hinted that sharp increases in the price of poultry products are inevitable, even as he eagerly awaits information on Government’s plan to keep a lid on costs.
He told Barbados TODAY that despite assurances from Minister of Agriculture Indar Weir that the country’s lone livestock feed manufacturer, Pinnacle Feeds, has paused raising costs by 26 per cent from August 1, he fears it would only be a matter of time until “business decisions” would have to be made.
“I am waiting, because the fact of the matter as we have indicated is that a lot of the principal inputs have increased and, like any normal business, if your costs have increased, like any business, you have to cover your cost,” Paul said.
“It is not a statutory agency, it is a private business. So, the Government could ask them to make a decision but at the end of the day it is still up to the business as to what has to happen.
“All I am saying is that at this time, if there is no support given to the industry to cushion the impact of an increase in cost, most likely, unless the company has some other way of financing these increases, it is likely that you will see an increase in the price of feed,” he added.
Weir recently expressed concern that the directors of Pinnacle Feeds were too hasty in introducing a price increase on August 1 despite discussions on a $2 million livestock feed subsidy that would be introduced.
According to the Minister, an agreement was brokered to pause the proposed price rise pending the outcome of discussions which were expected to be finalized Friday.
Paul said: “I know there are discussions going on with the company on it. At the end of the day, this is a commercial business decision on the part of the entity to see what happens. I am just waiting to see what the Ministry of Agriculture is going to come up with. Whether or not we have an increase or don’t have an increase, I can’t say at this point in time.”
The increasing feed prices are said to be linked to a hike in the global price of corn which is one of the main ingredients in the manufacturing process.
