Consumers are being warned not to expect lower prices across the board following the Prime Minister’s promise of cheaper chicken.
The Barbados Egg and Poultry Producers Association (BEPPA) has made it clear that small farmers are not obligated to sell chicken at reduced prices. President Stephen Layne sought to make that clear to avoid any fallout from the commitment that the large producers have made to cut their prices.
Last Saturday at the Barbados Labour Party conference, Prime Minister Mia Mottley gave an assurance that from this week, special outlets would be selling chicken at lower prices. She said this was her administration’s way of helping Barbadians cope with the high cost of living and the continuous price increases.
However, in an interview with Barbados TODAY, Layne explained that while BEPPA had been in talks with the Mottley administration about improving the industry, they had not entered into any special arrangements or compact on prices. Small farmers should therefore not feel compelled to drop their prices, he declared.
“The bigger players have outlets, the smaller [ones] don’t; they rely on small restaurants and supermarkets that deal with them,” said Layne. “The bigger players that have outlets can certainly play a role [in price reduction] and, therefore, it would be wise if shoppers note where these outlets are.”
Asked what impact this arrangement may have if consumers demanded the same prices from small farmers, Layne said: “This is not a compact. The whole idea behind this is to see how best we can advise consumers. That is why we placed an advertisement on where they can shop. It is for the sake of the consumer who is having challenges. But we are not in a compact where everybody is tied in. So, no [they don’t have to drop their prices], that was never part of the discussion and it would be reasonable that they can still operate within their range. They would have to know what range they could operate in.”
Layne said he was confident small players were already giving Barbadians value for their dollar by offering specials and making their prices flexible.
“They are already offering competitive prices,” he asserted.
In January, BEPPA refused to enter into the second price compact with the government after the initial arrangement forced several small farmers out of business.
Last year, the three largest producers of poultry and eggs — Chickmont Foods, Star Chick and Fasons Foods (Amir Chicken) — signed the compact, agreeing that from August 19, 2022, to January 31, 2023, they would trim prices by 10 per cent.
Layne said the small farmers did not have a say in the negotiations and their businesses were compromised as consumers, retailers, restaurants, supermarkets and other businesses demanded that their prices reflect those of the larger players. (SZB)
