Livestock feed prices to jump near 20 per cent

Barbadian consumers are in for another major hit to their food bills, as retail prices for key products are expected to increase.

Right on the heels of a big hike in petrol prices on the island, the prices of animal feeds will also increase from tomorrow by an average of just under 20 per cent.

And as local producers have warned, local meats including chicken, processed meat products and possibly some vegetable prices, are expected to follow suit.

Government has ended its three-month-long subsidy to the Lower Estate, St Michael manufacturing company, and Pinnacle Feeds Ltd, the country’s main manufacturer of most livestock feeds, is blaming what it calls the “unprecedented increases” in the world prices of raw materials and freight.

Pinnacle Feeds is a division of Roberts Manufacturing.

Jason Sambrano, the managing director of Roberts Manufacturing, said in a statement published today, that from tomorrow the price hike will take effect. He said price changes will vary based on the feed product.

“This is an incredibly difficult decision, as we understand the significant challenges that continue to impact us all because of the COVID-19 pandemic. However, this decision had to be made,” Sambrano insisted.

He added: “There have been unprecedented increases in the price of raw materials over the past several months. Global soybean yields are also affected by acreage, and due to climate issues, farmers have seen a decrease in output.

“Coupled with increased food transport costs, key raw materials like corn and soybeans have both increased by 70 per cent over the last year, and are still 55 per cent and 60 per cent higher than they were this time last year.”

Providing a graph to illustrate the significant upward movements in the prices of key inputs used in the feed manufacturing process, Sambrano said that like every other feed manufacturer within the region, Pinnacle Feeds was absorbing the increases for several months, “hoping the trajectory of prices would change”.

He explained: “They continue to trade at elevated levels. The continued increases in raw material costs and freight are beyond our ability to continue to offset, and as such, a price adjustment will be put in place from August 9. At that date, the average increase of our feed will be 19 per cent, which is the minimum increase needed to keep our manufacturing operations sustainable.”

The top company executive explained that while Government provided a subsidy for the period May to July 2021, with the hope that global prices would begin a downward shift, Sambrano said the price support was “never going to be a long-term solution”.

Government will no longer provide price support to the company, which is now majority controlled by a Jamaican outfit – Proven Investments Ltd and the ANSA McAl Group which is headquartered in Trinidad and Tobago.

According to Sambrano: “We appreciate the Government’s efforts to support the livestock industry and, by extension, the Barbadian consumer. We will continue to work closely with all stakeholders within the livestock industry to sustain jobs within the sector and provide food security for our island.” (IMC1)