Sellers pass on grower demands, labour costs to consumers

Consumers will now have to dig deeper into their pockets for coconut water, the Barbados Association of Retailers, Vendors, and Entrepreneurs (BARVEN) announced on Monday, claiming that vendors are facing rising costs for labour, bottles, and coconuts.

The price of coconut water has jumped markedly, with half-gallon containers rising from $15 to $17, and 500-millilitre bottles increasing from $5 to between $6 and $7. Long-standing vendors interviewed by Barbados TODAY attribute the price hike to escalating expenses across the entire supply chain, from coconut harvesting to transport.

BARVEN spokesman Robert Maloney said the cost of labour and the cost of half-gallon bottles increased, and private owners of coconut trees were also asking for more money.

When a Barbados TODAY team visited two popular selling spots—Holetown and Warrens—vendors corroborated Maloney’s report, indicating that the price of the water had moved from $15 to $17 for half-gallon containers and $5 to $6 or $7 for 500-millilitre bottles.

John Odle, who has been in the business for 13 years, said that over the past months the operational costs have been putting a significant dent in profits.

“The cost of coconut water is rising because the cost of the bottles are expensive, the growers are asking for more money and then the guys that work with the coconuts also have to get paid for the dangerous job they are doing,” said the businessman who sells coconut water in Holetown. “The bottles have increased by 20 per cent. The 500 millilitre bottles are reasonable but the half gallons kill us a lot. Just like meat or veg the price of the coconut rises and falls and at the moment there is no falling, the price is only rising. The coconut growers are now asking for $1, $0.75 or $0.80 per coconut when it used to be $0.50 or $0.60. So we cannot continue to subsidise, we have to pass on the cost to the consumers.”

Odle broke down the other operational costs. He explained that climbers were now requesting $300 to $350 per day, while their labour used to be $150 per day. Loaders and cutters were now asking for $150 to $200 per day. Their pay rate used to be $75 to $80.

Odle has a small truck and before the increases, it would cost him around $250 to $350 to fill the vehicle. Now, it costs him $600. He said that a full truck of coconuts could provide water for about 150 half-gallon bottles. The vendor explained that due to the increases, he now had to operate more times a week to make a decent profit.

“This is becoming too expensive and I am seriously considering getting out, I have to put in too many days to make a profit,” he complained.

He suggested that the government could provide arable land being overrun with bush to bona fide coconut vendors and help them establish an agroforestry project. In this way, he said, vendors will be able to lower their input costs.

“The coconut vendors could actually do with some land where they plant coconuts and the water will be cheaper to the consumers. It would take a while but coconut trees now growing within three years and bearing so this is something that would ease the situation. The die-hard coconut vendors that were doing this for a long time, the government could allocate a spot for them. They will get more riper coconuts than young ones and our prime minister has been talking about not using the young ones to make the industry more sustainable.”

He added that some consumers also complained about the price increase but he has been finding ways to get around it.

“The die-hard coconut drinkers buy it, other people are reluctant so sometimes sales drop. But just like supermarkets, when things go up they buy them. I try to push more small bottles than big ones. If a person only has $15, they can get two small bottles. Otherwise, I can’t do much more because it’s a sticky situation.”

Over in Warrens, a vendor for over ten years, who did not want to be identified, said some private growers were being opportunistic.

“They tell themselves that if our business is growing they want more money,” he said.

The vendor said there have been mixed reactions to the price increase: “Some are understanding, some will make noise and some will buy.”

Currently, he is selling half-gallon bottles for $17 but his loyal customers still get their water at the old price. He only sells bottled 500-millilitre coconut water for special orders of 100 and up, and his wholesale price is $3.50. The vendor said that the main cause of the increase was the cost of the half-gallon bottles, explaining that a bale of those bottles, which contain 108 bottles, increased from around $110 to $150. He added that fuel was another increasing expense as well. 

sheriabrathwaite@barbadostoday.bb