Feed prices rise, chicken prices could soon increase too

Barbadians may soon have to pay more for chicken.

Chief executive officer of the Barbados Agricultural Society (BAS) James Paul warned on Tuesday that although poultry prices have not yet increased, despite a significant increase in feed prices internationally, farmers will eventually be forced to pass on those costs to consumers.

At the same time, the island’s largest feed supplier Pinnacle Feeds Limited has announced that livestock feeds will rise by an average of eight per cent from Wednesday.

The company blamed the ongoing war in Ukraine as well as unfavourable weather conditions in South America for the increase on the world market.

Pinnacle also warned that prices would be influenced by fluctuations in the coming months.

“We have been shouldering some of the weight of rising input prices but this price increase is needed as the prices of corn and soybeans continue to increase significantly on the world market,” the company said in a statement.

“…The price increase will average eight per cent but the exact increase will vary by feed.”

In an interview with Barbados TODAY, Paul said corn prices were at their highest in over a decade.

“Chicken prices have not gone up as far as I am aware, so, in other words, for chickens slaughtered this week the prices are not going to rise.

“Secondly, we just have to face the fact that other prices have gone up. How do we survive in an environment in which other prices have gone up? The same gas prices have gone up and the fact of the matter is that corn is now $8 per bushel. I don’t know if you appreciate that corn has not been at that price in the last 10 years or so and that is a fact,” Paul explained.

“It is not a situation where we can say that better can be done. We are hoping to see, of course, some kind of downward movement, but until that downward movement happens we are forced to buy more expensive corn to feed the animals and more expensive than we’ve ever seen corn before…. So, in the meantime, let us bear in mind that the industry will do what it needs to do to keep prices within the reach of consumers to the best of their ability, but this is not a situation where better can be done under the circumstances.”

Paul said with prices continuing to rise due to the ongoing war in Ukraine, Government might have to intervene to give farmers ease.

He said an earlier rebate on feed that had been offered by Government was no longer in place.

“That was only a one-tenth subsidy and as a matter of fact, I would want to suggest that here is where maybe the Government might want to consider a subsidy to the industry, especially in terms of the feed, because if we can reduce the cost of inputs to the industry then it will be better. It is a temporary thing because I really do hope that we can get a resolution to the war in Ukraine, although it is looking to be protracted more than anything else….

“What we are seeing now on the world market is that there is a lot of speculation on commodities. Commodities are seen now as safe havens for money, so because of that the demand for it has gone up and that is what is driving up the cost of commodities such as corn and soya and wheat on the world market. This is a situation where we in Barbados have very little control over,” Paul lamented.

Efforts to reach Minister of Agriculture, Food and Nutritional Security Indar Weir for comment proved unsuccessful up to the time of publication.
randybennett@barbadostoday.bb