Chief Executive Officer (CEO) of the Barbados Agricultural Society (BAS) James Paul Monday called for a permanent fix for farmers as talks continue on reducing operating costs in the sector.
His appeal comes as Pinnacle Feeds suspends its decision to raise the price of feed following Government’s intervention last week.
Paul however contends that as the cost of grain on the world market remains elevated, Pinnacle Feeds may have no choice but to pass on the additional cost to farmers who are already struggling with high operating costs if Government does not find a way to continue to subsidize the livestock sub-sector.
“Until some kind of way is found out, the situation is that we will see a price increase in feed and that company has clearly indicated that to the sector. We are hoping that Government can find a way to find some type of subsidy and if they don’t then we will have to deal with the increase in prices.
“And this can have an impact on the cost of the final product. Unless somebody steps in the prices for meat and poultry will go up because the farmers have to recover the costs. It is either that or they go out of business. If they do not receive some type of support, the farmers have to increase the cost of their product to recover their cost of production,” Paul said.
On Friday, November 26, Pinnacle Feeds issued a statement indicating that as Government’s temporary price support on feed prices was drawing to an end, the cost of animal feed would be adjusted from Wednesday, December 1. Director of Pinnacle Feeds, Jason Sambrano, emphasized the importance of the role Government had taken, thanking the administration for its intervention in supporting the livestock industry.
“Thankfully, since then, there has been a reduction in grain pricing on the world market and the adjustment required at this time is lower than what was required back in September. The increase at this time would be 3.7 per cent on average as opposed to the 8.9 previously supported through the Government’s intervention,” the statement read.
Meanwhile, last Friday, Minister of Agriculture and Food Security Indar Weir told Barbados TODAY that the increase in feed prices which Barbadian farmers were expected to pay from this month has been halted until a more long-term arrangement is brought to the table.
Weir said the Government held talks with Pinnacle and the decision was made for the animal food manufacturer to hold off from implementing the 3.7 per cent increase in feed prices until a number of issues have been resolved.
In early August, Barbados’ lone feed manufacturer raised prices by 26 per cent, sending shockwaves through the farming and food production community. Later that month, Government agreed to continue a three-month support mechanism valued at $2 million which ended at the start of August.
Minister Weir has indicated that the BAS and his team at the ministry, were in the process of exploring triggers that could be used to provide long-term sustainable support to the livestock industry.
Barbados TODAY understands that the Ministry of Agriculture has been hosting talks with farmers to discuss how to reduce their overall operating costs.
But Paul, who indicated that he met with poultry and livestock farmers last week, stressed that even before Minister Weir made the suggestion, farmers, for a long time, have been trying to find ways to reduce operating costs.
The BAS boss lamented that not only have farmers been battling a significant increase in water bills, but due to external factors, they have also been forced to pay more for other necessities needed to keep their farms up and running.
“I don’t know what else we can do, but one thing I know the Government has control over is water. The cost of water is too much for the sector to bear. And I know the Prime Minister [Mia Amor Mottley] has indicated that something is going to be done about that,” he said. (AH)
