Justify increase in chicken prices

THE EDITOR: Please allow us this opportunity to put on record a factual account of why prices of live and frozen chicken should be under $2.25 and $4.95 instead of current prices of $4.30 and $8.95 respectively. Why are there objections to the importation of frozen chickens that can be sold to consumers under $5.95 per lb? We also challenge chicken processors to the authenticity of this report in order to finally put an end to many controversial issues among them. We also wish to protect an economic and vital part of our national food security in the best interest of Trinidad and Tobago. Chicken is considered a very basic food commodity that is consumed by 98 percent of the population. In the last USDA 2001 report, TT has among the highest consumption of chicken in the world. It is 92 lbs per capita. Indicators were observed that despite the fluctuation of prices in international grain and other raw material inputs and our local economy, prices were relative to consumer spending.

Indicators show that the industry was quite profitable due to its continued growth along with several other new businesses these processors were able to establish. However, it was felt that despite the industry being on a high economic standing, the distribution of its benefits could have been more widespread to help sustain the country’s social and economic growth. Between 1988 and October 2003, local prices of live and frozen chicken were $1.50 to $2.50 and $3.10 to $4.50 respectively. The higher prices were reflected only during Christmas and Carnival seasons when the demand and supply were always imbalanced. Given the current prices, there has been an overall increase of over 127  percent at this present time. That is far too high given that our consumer spending is way under. Remember when one processor in May/June 2003 advertised for six weeks that its price was under $1.50 and challenged any other processor to match its price?

The winner obtained a certified cheque of $3 million dollars that was also advertised. In 1995/1996 there were just five meat importers who were importing chicken from the United States. When complaints were made to the Ministry of Trade in the last Government regarding the Anti-Dumping law, processors were instructed to provide certain information including that of their own production. In no time, for one reason or the other the processors completely withdrew their complaints. Then in 1997 based on the introduction of trade liberalisation and policies set by Caricom, international financial institutions and other trading partners, the processors were informed by the then minister of agriculture Dr Reeza Mohammed, that the surcharge would be gradually reduced and would have been completely removed by the end of 2004.

They were also advised to adapt to measures to improve greater efficiency in production and seek export markets as the industry was well supported by means of Government concessions, high consumption and demand and good prices. This was totally ignored. Each processor is fully integrated in poultry production. In other words, each trades under other companies that carry their own individual profit centres in the following: grain terminal to import grains, hatchery to produce chicks, feed mill to produce feeds, processing plant to process chicken, marketing and distribution companies, import and export purchasing companies both local and abroad. These individual profit centres are never reflected in their overall production costs to the Ministry of Consumer Affairs to justify the price of chicken.

Finally, we note that two processors are badly advised to present misrepresented and irrelevant data of comparable prices of chicken and other meats of foreign countries as reason to justify the local chicken prices. Also, one producer should refrain from any attack on the integrity and quality of meats and chicken from the United States. This is a very dangerous and unsubstantiated allegation that will not only have serious implications to itself but would tarnish the integrity of TT export companies, foreign restaurants now operating in Trinidad, hotels and ultimately seriously threaten the integrity of both countries. We look forward to the processors producing for the nation a justification once and for all! In the meantime, Trinidad and Tobago will seek another alternative in this free world to sustain its own economic growth.

RICHARDO BLAKE
On behalf of Consumers/East West Corridor