Legal Affairs Minister: Nutrimix misleading public

Minister of Legal Affairs Camille Robinson-Regis on Friday refuted the reasons given by Nutrimix Ltd for increasing the price of chicken, which now stands at about $6 per pound. July 11, 2003. In a letter to the editor, she said Consumer Affairs Division has been monitoring the situation following reports from supermarkets and pluck shop owners that producers have been increasing prices on a weekly basis. Responding to an advertisement in which Nutrimix gave PLIPDECO land rental as a reason for the increase in prices, Robinson-Regis said the impression given by the company was that there was a monthly increase in rent. “PLIPDECO has indicated that Nutrimix has two five-year leases, one from 1995 and the other in 1997.” She said there is a clause in the terms and conditions of the lease which stated that the lease would be reviewed “upwards every five years.” She disclaimed that gas prices could have an impact on the weekly increase in chicken prices because gas prices represent less than one percent of the total operating cost of a poultry processing plant. She said gas prices have gone up once for the year in January. 

While the minimum wage has increased by 14.3 percent she said the majority of chicken produced by Nutrimix are contracted out to farmers who are paid $1.50 per bird. Robinson-Regis said the wage bill may have an effect on the processing of chicken but this factor cannot be considered in April as an increase in cost. Nutrimix was accused of misleading the public by saying electricity costs have gone up by 9.95 percent. She said the downward movement of the exchange rate regime resulted in the net effect of the increase being one percent per unit of energy and a 4.1 percent in the bill paid by Nutrimix from May 2002-2003. Robinson-Regis challenged the grain prices presented by the company. She said ex-mill price corn increased by 12.6 percent and not 25.77 percent as Nutrimix said in their advertisement, and ex-mill price soya meal increased by 4.9 percent and not 41.13 percent. While the cost of plastic and packaging materials, and lubricants has risen since April, and Nutrimix adjusted its price accordingly, Robinson-Regis said there have been no further increases and “Government has nothing to do with these costs.” Commenting on freight costs, she said National Flour Mills indicated a minimal increase in freight cost over the past year.