Producers move to avert chicken shortage

Some of the major players in the poultry industry are working to avert a crisis and prevent a potential chicken shortage.

Managing Director at Gale’s Agro Products Barry Gale told Barbados TODAY that as a result of a “mixup”, hatcheries are having to find buyers for a surplus of chicks, while large-scale producers are trying to fill the gap in unfulfilled orders as small farmers indicate they cannot afford to sell chicken at the reduced cost being demanded by retailers.

During a press conference on Wednesday, chief executive officer of the Barbados Agricultural Society (BAS) James Paul disclosed that some retailers were trying to force small farmers to sell their produce at a reduced cost. Paul said that, unable to do so, several farmers had therefore cancelled their orders at hatcheries.

Gale confirmed that the cancellations have been putting the industry under pressure.

“We have a few farmers that are concerned about the profitability of farming chickens for a number of reasons. In order to protect themselves, they are canceling their baby chick purchases, often at the very last minute when those eggs are already in the incubators, and once they hatch out we need to find homes for them.

“So over the last two or three weeks we have had quite a bit of surplus due to cancellations,” he said.

Gale explained that while the three major poultry producers – Chickmont, Star Chick, and Fasons Food (Amir Chicken) – had signed Government’s compact arrangement to sell whole chicken, chicken stew, chicken backs and chicken chop mix at a reduced price, the small farmers did not.

He added that only major supermarkets had subscribed to the programme, yet some of the others as well as some fast food entities were trying to take advantage of the arrangement.

“What they are doing is that they are leveraging this idea of reduced prices from the big wholesalers and they are putting it onto the small farmers as well, demanding that small farmers also give a discounted price.

“Invariably, small farmers are competing with larger producers based on price. They offer a lower price so for them to give a discount now will drop them into an unprofitable territory,” Gale said.

“I think it is a misunderstanding of retailers who are pressuring small farmers . . . . I think everyone is trying to capitalise on this idea that chicken prices have to be reduced but the small farmer is the one paying the price.”

To meet the shortfall, Gale said the main producers were stepping up to try to prevent a shortage.

“I have been working with the producers to try to place what the small farmers have not been taking, so we are trying to protect the industry itself from being short of chicken in six weeks,” he told Barbados TODAY.

President of the Barbados Egg and Poultry Association Stephen Layne added that it was important that a shortage did not occur into the Christmas season, as that would give some retailers an excuse to ramp up frozen chicken imports, which were “significantly undermining the industry”.

“There are no guarantees in life, but right now there is no shortage . . . . With those cancellations we are fighting to mitigate a shortage, not immediately but going into the holiday season,” he said.

Layne lamented that while the poultry industry is “trying desperately hard to ensure Barabdians have a source of fresh local chicken at a reasonably affordable price”, competition from imports was making the environment very difficult to operate in.

He called on the Government to pay more attention to this development and to put measures in place to protect the local poultry industry that would not compromise its regional and international trade agreements.

Layne added that he also wanted the major poultry producers to consider adding greater value to their product by making their offerings more attractive to consumers.

He suggested that they could pre-prepare (pre-season or add stuffings to) whole chicken and/or chicken parts which would reduce the time needed to cook the produce.

sheriabrathwaite@barbadostoday.bb