Consumer body urges officials to probe claims of poultry shortage to avoid price manipulation

Fearing the introduction of “price manipulation” in the poultry industry, a consumer advocacy organisation is calling on the government to launch a thorough investigation into any perceived shortage of poultry and poultry products at this time.

Executive Director of the Barbados Consumer Empowerment Network (BCEN) Maureen Holder on Tuesday cautioned consumers to be watchful whenever there is talk from the major players in the sector of a chicken shortage.

Suggesting that chicken shortages in Barbados are rare, Holder contended that they could be artificially created by some industry players.

“It is not often that we hear about chicken shortages in Barbados, but BCEN cautions consumers that whenever it happens . . . , consumers should be more vigilant, and the government should thoroughly investigate. In Barbados, everybody is somebody’s friend, and few are willing to do right by the majority, as long as it does not impact on their bottom line,” she asserted.

“Policymakers and the political directorate must be prepared to thoroughly investigate any issues of chicken shortages in Barbados because it could mean that there is some form of price manipulation called ‘spoofing’. Many Barbadians may not be familiar with the term, but it is a practice that involves, for example, doing something like placing a large order with the intent to cancel the order to create the appearance of a demand or supply problem, or creating a shortage problem which leads to price movements that benefit the industry players.”

She insisted that Barbadians deserve fair pricing, transparency and a competitive and ethical marketplace in the poultry industry. 

“All of these measures should give consumers access to fairly priced poultry and poultry products. The measures should also safeguard against anti-competitive practices and pricing manipulation,” the consumer group’s director told Barbados TODAY. “It is one thing to talk about a free market and the inability to control prices, but when that free market results in limited competition or restricts competition in prices for poultry, then consumers have to be concerned.”

The BCEN spokesperson added: “The time is long overdue where the poultry industry in Barbados facilitates an environment where prices for chicken reflect the natural forces of supply and demand rather than the rise in the cost of inputs to feed the chickens. It is a situation that has been happening in Barbados for a long time and it is called input cost-driven price increases and an example of cost-push inflation which has nothing to do with supply and demand.”

Holder noted that over the years, Barbadians have been reminded about the rise in commodity prices and cost of inputs for producing feed.

However, she contended that whenever there is a decrease in commodity prices, “some excuse is given as to why the decrease is hardly reflected in the price of chicken.” 

Holder said consumers need to understand and distinguish the difference between demand-driven price increases – where prices rise due to increased consumer demand or a shortage of supply – and cost-push inflation in the poultry industry. She said knowing the difference would help consumers make informed choices relative to the information they receive about chicken prices and “how farmers need to make a profit”.

“BCEN believes that the players in the poultry industry in Barbados should be able to make a profit, but consumers should also get value for money and benefit from increased and fair competition in the poultry industry’s marketplace. Healthy competition is important because competition can help keep prices in check and drive innovation, benefiting both consumers and players in the poultry industry,” Holder added. 

emmanueljoseph@barbadostoday.bb