Small poultry farmers against extension of social compact with Gov’t

Small poultry farmers are taking a stand against any notion of extending the social compact Government designed to give consumers an ease from rising food prices.

On Saturday, during a meeting at the Lloyd Erskine Sandiford Centre, the farmers voted that the Barbados Egg and Poultry Producers’ Association (BEPPA) should not enter into such an agreement with Government again.

Out of the 27 farmers present, 26 voted against BEPPA’s involvement in an extension of the compact, while one farmer did not participate in the vote.

Small farmer Robert Tudor made the proposition, which was seconded by Hugh Weekes.

Last year, the management of the island’s largest producers of poultry and eggs — Chickmont Foods Ltd, Star Chick Ltd and Fasosn Food Inc (Amir Chicken) — signed onto the compact, agreeing that from August 19 to January 31 they would sell their offerings at 10 per cent less.

The small farmers did not have a say in the negotiations, and they say they were compromised by the arrangement as retailers, restaurants, supermarkets and other businesses are demanding that they offer their products at the same prices as the larger players.

Small farmers represent more than 40 per cent of the poultry industry and this had a detrimental impact on their enterprises.

Many of them could not sustain selling their products for 10 per cent less and either scaled down their operations significantly or stopped producing completely.

This then disrupted the business of the island’s main hatchery — Gale’s Agro Products Ltd — with scores of small farmers cancelling orders and the hatchery losing thousands of dollars worth in sales. They also had to euthanise thousands of birds as a result.

In Saturday’s meeting, officials reported that Gale’s had to cut back on their overseas supply of hatching eggs and dropped operations by 20 per cent.

“We have had an extremely challenging period during the [height of] COVID-19 and that compact has impacted on us significantly. We need to recover the poultry industry, both eggs and chicken. We should be looking at having a price increase far less [getting into a compact]. I am subscribing to the protection and growth of the poultry sector so we cannot afford it,” said BEPPA president and chairman of the meeting Stephen Layne.

Chief executive of the Barbados Agricultural Society (BAS) James Paul asked those present: “Do you want to reduce the price of chicken right now? That is what Government is asking you to do, to reduce the price of your chicken. Don’t get caught up with the fancy terms such as compact.

“It is as simple as this. You are selling your chicken at $18, we [Government] want it at $16. Can you afford to sell it at that? You have shown your decision. You are not telling them no but you are stopping production.”

Last month, the heads of both the Barbados Private Sector Association and the Barbados Chamber of Commerce and Industry said they were willing to participate in talks to extend the compact.

Against that background, Paul said that if BEPPA, a subgroup of the BAS, was invited to any meeting about an extension of the compact its position would be “we cannot entertain any discounts at this time on the price of chicken”.

During the meeting, which started around 10:30 and concluded at 1 p.m., small farmers vented their frustrations about not having a say in the negotiations regarding the compact. They argued that the three large players should not be able to make decisions on behalf of the entire industry.

“How come the poultry farmers through the BEPPA can sign onto a compact without knowing the consequences? You had to make sure all the parties were onboard … How could you sign onto something without going back to your people … and see if the 10 per cent could work?” asked one farmer.

The farmers suggested that the BEPPA board was coerced into signing off on the arrangement.

In response, Layne admitted that he was under intense pressure during the negotiations and while only one large player was enthusiastic about the compact, the other two “grumbled but did not say much”.

Layne said that there was not much objection and with governmental officials demanding that a decision was made on the same day, he was “implicated”.

Layne said Chickmont negotiated for the 10 per cent and it was the “highest percentage discount” offered among the private sector entities Government was negotiating the compact with.

The farmers insisted that going forward the BEPPA board should hold firm and convene a meeting with its membership before making decisions that could impact the poultry sector. (SZB)