Chicken surcharge plucked... for now

NUTRIMIX Feeds Ltd, one of the country’s largest poultry producers, has been granted an injunction restraining Govern-ment from implementing a 2005 Budget decision to reduce the surcharge on the importation of chicken parts. Nutrimix fears that the reduction in the surcharge could lead to the closure of poultry farms as well as heavy losses in investments and jobs. The injunction was granted by Madame Justice Carol Gobin in the Port-of-Spain High Court on Thursday following an ex-parte application by Nutrimix for judicial review of the decision of Prime Minister Patrick Manning, who is also the Minister of  Finance, to reduce the surcharge on the importation of chicken parts. The judicial review application was filed against Manning as head of the Cabinet as well as the Minister of Finance.

The judge also granted the company leave to apply for judicial review. That matter comes up for hearing on Wednesday where it is expected that State attorneys from the Attorney General’s Chambers will make an appearance. Appearing on behalf of Nutrimix Feeds were Ramesh Lawrence Maharaj SC, Rikki Harnanan, and Dharmendra Punwasee, instructed by Daryl Allahar. Manning, in his Budget presentation on October 8, said the surcharge on the importation of chicken and turkey parts would be reduced from 86 percent to 40 percent from November 1. The injunction prevents the implementation and the carrying out of the decision of the Government in so far as it refers to chicken parts, specifically leg quarters and thighs, pending the hearing and determination of the judicial review application.

In its application before the High Court, Nutrimix Feeds, which is involved in all aspects of poultry production and processing, is contending that reduction of the surcharge on the importation of chicken parts from 86 to 40 percent would have a disastrous effect on the poultry industry, resulting in heavy losses in investment and jobs. The company claimed that the new measures would result in the closure of poultry farms, pluck shops, manufacturing and processing plants and a substantial reduction in the contribution to GDP. The company also claimed that there could be an increased risk of dumping inferior chicken on the local market. Nutrimix employs 375 persons and has contracts with over 250 poultry farms.

The company has heavy investments in the industry and operates a feed mill, a hatchery, processing plant, a grain terminal and a rendering plant. In its application, Nutrimix contends that over the years, Governments have instituted measures to protect the poultry industry as a means of boosting the agricultural sector, protecting jobs, and providing an affordable source of protein for the population, especially those on the lower end of the income scale. Nutrimix claims that the price of chicken and turkey parts on the international market is volatile. The company contends that the parts are sold cheaply in the United States and they could be imported into Trinidad and Tobago at a very low cost. Such a situation would have grave consequences on the industry and result in its collapse, Nutrimix added.