East company reduces prices by 55 percent

A poultry company has reduced its chicken prices in the wake of Friday’s budget. Fine Choice Meats of San Raphael announced yesterday, it was reducing the price of all chicken parts by 55 percent, effective tomorrow. In a statement, chairman Yusuff Mohammed said based on a meeting held yesterday, his company was no longer a “bona-fide” member of the Poultry Association of Trinidad and Tobago (PATT) and as such, did not support any statements made on behalf of the poultry industry. The statement added that in keeping with government’s policy to reduce prices of chicken and turkey parts as referred to in the 2004-2005 budget, his company was pleased to take the first initiative to lower poultry part prices. The price changes are as follows- live chicken-$1.99 per lb, frozen chicken - $2.95 per lb, all chicken parts - 55 percent reduction of current prices, whole turkey - $3.85 per lb and turkey parts - $3.50 per lb.

“We advised that all customers of supermarkets, pluck shops, restaurants and fast food outlets and caterers, to lower and make their respective price adjustments as a result,” he said. Mohammed guarantees these prices would hold until June 2005. However, Nutrimix, another poultry company has described government’s decision to reduce the surcharge on imported chicken and turkey parts from 86 to 40 percent, as “a stab in the back.” In a media report, an official of the company said the action was tantamount to betrayal given that poultry producers were still selling within the price ceiling of $4.30 a pound set by government in March. Former President of the Supermarkets Association, Balliram Maharaj and manager of the Arima Discount Mart (ADM), said government was moving in the “right direction” in its measures to remove VAT and import tariffs on certain food items. Consumer Affairs Minister, Danny Montano, said he was “very pleased” with the measures taken by government.

In the 2004-2005 Budget presentation by Prime Minister Patrick Manning Friday, he announced that government was “well aware of rising food prices.” As a result, there will be no VAT on sugar, cocoa, coffee, mauby and orange juice and no import tariffs on powdered milk, split peas, black-eyed peas and cheese. Maharaj pointed out that food prices were rising because of high, import demands from China, and that no government could do anything about rising global prices. However, he noted there were steps that can be taken to alleviate global pressures on food and removing the Common External Tariff (CET) and the surcharge on chicken parts, was “a step in the right direction.” “This is one way government can help protect the local industry,” he said. Maharaj expects consumers could see a “drastic” reduction in the price of chicken in about six week’s time. He noted that government could not do anything about the price on rice and flour.

He said since TT currently imported rice from Guyana, it could not interfere with present Caricom agreements until its next renewal. “Therefore, their hands are tied on this one because of Caricom agreements,” he said. Montano said he was satisfied with the moves, pointing out that the Ministry of Finance had the power to do something about rising food prices. He said even though he did not have jurisdiction over National Flour Mills (NFM), his Ministry would still be monitoring the situation with rice and flour. Montano also predicted price drops in chicken over the next six to eight weeks. “It all depends on how quickly the supermarkets can work with the local suppliers and the importers and the lead time to their orders,” he said.