Brace for pork and poultry price hikes this Christmas, the farming community’s leading spokesman warned Friday unless Government renews livestock industry subsidies that are set to expire this month.
The subsidies, worth $4 million, were introduced to thwart price increases for three months. But Agriculture Minister Indar Weir has signalled the clock will be allowed to run out on the price support to farmers.
The subsidies were intended to make up for a shock rise in animal feed prices in August. Feed accounts for three-quarters of livestock production costs.
Chief Executive Officer of the Barbados Agricultural Society James Paul told Barbados TODAY that he was concerned that if Government does not extend the support mechanism and the prices of raw materials on the international market don’t drop, then farmers will once again be hit by animal feed price hikes that will eventually raise pork and poultry prices.
Paul said: “Government has so far provided $4 million in subsidy and the indication from Government is that that subsidy will no longer be provided. It is due to end sometime in November; the three months runs out in November.
“Clearly, if Government doesn’t cushion it, then farmers will have to absorb it and consumers will have to absorb it. We were hoping that at the end of that three-month period, the prices on the international market would have come down, but they are still above what they were last year.”
But when contacted Friday evening, Weir told Barbados TODAY that Government cannot continue to provide price support to the livestock farmers by helping them to defray the increased cost of feed. He said the authorities were now looking at a “more sustainable” approach to protecting the livestock industry.
“We are looking at other options like providing reduced water rates,” said Weir. “But the price of grains is currently falling. If that trend continues then the price of feed will come down too. We are also looking for other incentives as well.”
Paul said his research has shown that the prices of raw materials on the international market still appears to be high. He noted that if the prices do not return to where they were last year, then farmers will be paying significantly more for animal feed when the subsidy ends.
The BAS head said: “Feed is about 78 per cent of your overall cost. With that critical cost going up, I don’t see how it cannot have an impact on the final product. I will state that farmers do not have many other options. As we all know, generally, supply chains around the world are getting more difficult, and it is not easy.
“Farmers right now, I can tell you are living on reduced margins and it can get even worse. This is not something that anybody expected. And the Minister has indicated that the subsidy is not likely to continue, so I do not see what other options the farmers have.”
In early August, l feed manufacturer Pinnacle Feeds raised prices by more than a quarter, sending shockwaves through the farming and food production community and sparking fears of a knock-on effect on the price of poultry, fresh meat and meat products.
Roberts Manufacturing and Pinnacle Feeds Director Jason Sambrano said then the increase in animal feed prices had been made responsibly after the company weighed all factors, including increases in global costs.
Later that month, Minister of Agriculture and Food Security Indar Weir announced that after meeting with numerous industry figures, including Pinnacle Feeds, Government agreed to resume a three-month price support mechanism valued at $2 million which had ended at the start of August. anesthenry@barbadostoday.bb
