Gov’t extends price support for feed and urges sector to lower prices

There has been an eight per cent reduction in the price of livestock feed to farmers in Barbados at least for the next 90 days.

But Minister of Agriculture and Food Security Indar Weir said Monday he hopes “everybody” will keep their word and pass on the decrease to the consumers.

Minister Weir was responding to an announcement by Managing Director of Pinnacle Feeds Jason Sambrano who disclosed that effective today, the price of livestock feed sold to farmers will drop from 19 per cent to 11 per cent.

Sambrano, who is also Chief Executive Officer (CEO) of Roberts Manufacturing said the new price will last for three months as a result of price support by Government.

“We have adjusted our prices effective today from what we had done back on the 9 August. So it has moved from an average 19 per cent increase which was on the 9 August to an average 11 per cent increase which is effective today through discussions with the Government on the price support,” he stated.

“So it will be a three-month price support from September. It is a very positive sign that the Government sees the livestock industry as an important aspect of the economic fabric of Barbados. I am really appreciative of all the work that was put in by the Ministry of Agriculture in getting us to this point,” the Pinnacle Feeds executive said.

The senior official said the cut in the price would redound to the benefit of livestock farmers and consumers with the Government now having extended its previous May to July price backing.

Sambrano however could not say how the lower price could be sustained but suggested that stakeholders need to keep the lines of communication open in order to respond to market developments.

“I think the thing is for communication to remain open as to how things are happening in the market. I don’t think it is something maybe that is able to stay in place permanently, but definitely all stakeholders need to communicate so we are prepared for whatever the eventualities may be, depending on how the market performs over the next coming months,” he pointed out.

Minister Weir recalled that last Tuesday Parliament approved a $2 million supplementary to continue its price support to livestock farmers after negotiating with Pinnacle a reduction in that company’s proposed 26 per cent hike in feed costs.

“I am happy to note that Pinnacle has actually kept their word and brought down the increase to where we have agreed. Obviously, the consumers now will see a reduction in the price at the point of retail and I sincerely hope that everybody would keep their word and make sure, just like Pinnacle did, that they bring the prices back down,” the agriculture minister told Barbados TODAY.

“The benefit would be to the consumer in the end, but equally I am happy to see that the livestock sub-sector is getting the support that we negotiated on their behalf,” he added.

Weir also assured farmers that they would not be “thrown to the wolves” after the three-month price support period has expired.

He disclosed that he would be taking proposals to Cabinet shortly which would give the Government and farmers options for a more sustainable livestock sector.

“We are currently working on other measures to help support the livestock farmers and we are going to be announcing those as soon as we can go to Cabinet and get Cabinet’s approval. There are several things we are looking at. Overall, we are looking at how we can reduce the costs of livestock farming in Barbados,” he stated.

In response to calls by the Barbados Agricultural Society (BAS) for relief in the cost of water to farmers, the minister revealed that this precious commodity would be one of the options being proposed by government.

“Water would be one of course. We are also looking at how we can infuse some competition as well into the sector. We are also looking at how then we can allow for farmers to be able to reduce their total operating cost. Those options we have to make available to the Cabinet. It is not something that I can make public before first speaking to the Cabinet about it and making sure that the Cabinet is in agreement with the approach that we are taking,” minister Weir said.

He also noted that the aim is to provide a more price-friendly environment for the sub-sector.

While Chief Executive Officer (CEO) of the BAS James Paul welcomed the slash in the price to farmers, he cautioned consumers not to expect that this would be passed on to them all at once with immediate effect.

“It would depend on the individual establishment in terms of where their cost profiles are. I can’t say that at the moment. As I said before, the farmers have been reeling from extremely high costs and since the cost of feed had gone up, we would have heard a hike in the cost of diesel this week. So it is tight all around and it really depends on the individual operator. Some operators might want to accommodate and say ‘let’s see how much we can do’ but others might not have the margins in order to be very flexible when it comes to price,” Paul told Barbados TODAY.

At the same time, he said, the reduction in the feed price to farmers was only part of the cost-cutting measures which producers need to keep them competitive.

“Feed represents around 75 per cent of the cost and that is high,” the BAS boss stated.

“I just want to say though that in view of the fact that the farmers have had to face these huge increases in other costs…I know many people would be saying ‘how soon we will see a big reduction in the cost of poultry, pork, milk’?

“It really in itself represents part of the relief that should really be given to the farming sector at this point in time,” he declared.

He identified water as another major element in the cost of farmers’ operations for which relief is needed.

“We would like to see a reduction in the cost of water. We suffer the highest costs of all the territories in the region. There are also certain inputs that have gone up from certain suppliers, whether or not it is fertilizers, equipment. The interesting thing about this is that we cannot continue to lose capacity in the industry because the industry has a fixed cost in it,” Paul argued. (emmanueljoseph@barbadostoday.bb)