Unjustified rise in chicken prices

THE EDITOR: I refer to a letter published on Friday July 11, 2003 in a daily newspaper (not Newsday), headlined “Chicken producers will triumph over Robinson-Regis” and shall be grateful if you would publish the following in response.

The price of live chicken has increased from a national average price of $2.48 in January to $4.00 per pound in July 2003 representing an overall increase of 61 percent between January and July 11, 2003. Consumers also have been faced with an increase of 60 percent for frozen chicken parts and 65 percent for chilled chicken parts in the period January to July 11, 2003 for reasons, which have so far been unjustified. In April 2003, chicken prices rose by 42 percent to an average cost of $3.52 per lb. At that time the players in the industry indicated that this was not an increase but, in fact, a return to the normal price, citing the depletion of excess supplies, which had existed since August 2002, and increased cost in shipping, packaging, feed and grain. At that time, interestingly, no reference was made to the new minimum wage, which was in effect for three months from January 2003. Additionally, the majority of chicken produced locally is produced by contract farmers at a standard cost of $1.50 per bird for which our inquiries have so far shown there has been no change. The Ministry of Legal Affairs had no objections to this price increase as well as the justifications for the increase, which we deemed reasonable. Our research, however, has shown that from June 1, 2003 there was an increase of a further 5.1 percent and following that, a weekly increase of 2.1 percent as at July 06, and 5.8 percent at July 11, 2003. This has resulted therefore in the national average price of chicken moving from $3.52 per pound in April to $4.00 in July.

The Ministry has been in receipt of several complaints from both consumers and supermarkets on the weekly and arbitrary increases in the price of chicken. The Consumer Affairs Division has a standing relationship with the business community, which involves regular communication to ascertain movement in prices of goods. Whenever there is a situation as obtains at the present time, the Division, confirms through suppliers that there were in fact increases at their level. This information is given to the Permanent Secretary and the Minister of Legal Affairs who will then give a directive on the course of action. It should be noted that price control is not a course of action since Trinidad and Tobago’s movement  is towards a liberalised economy. “In keeping with the aim to introduce greater efficiency in the functioning of the economy, the Government has dismantled most price controls. By the end of 1988, only essential food items, and items where a substantial amount of monopoly price fixing existed — school books, pharmaceuticals and auto tyres — were still controlled.” (World Bank Report # P-5120-TR) To date price control exists only for selected school books, sugar and certain pharmaceuticals. The Minister of Legal Affairs has the responsibility in Government for consumer affairs and it is her responsibility to speak out against any issue she deems can adversely affect consumers’ interest. The role of the Consumer Affairs Division and by extension the Minister of Legal Affairs is to protect the interests of consumers. The Division’s mandate is to monitor the implementation of the National Consumer Policy for the protection of consumers. The aim of the policy is to create an environment within which the consumer, through his/her actions could maximise his economic resources and influence the private and public sectors to function in a manner that promotes just, equitable and sustainable economic and social development.

CAROLINE C RAVELLO
Communications Specialist
Ministry of legal Affairs