By Garwin Davis, Assistant News Editor
Levy
ANGRY SUPERMARKET retailers yesterday complained that they were kept in the dark about a recently imposed price increase on chicken meat and say they are now hard-pressed to explain the situation to their customers.
They note that with chicken being a major part of their meat inventory, the 5 per cent price increase which took effect on Monday, could adversely affect their business.
"I didn't know about it," said Roger Chin, managing director of Northern Cash and Carry, St. Ann. "I was told about it by somebody and had to call them myself to see if it was true, which they confirmed. This took us all by surprise and I can tell you now that customers will not be pleased."
Julius High, owner of Lisa's Top Quality in Kingston, said the increase was sneaked through the back door. "I don't know what we are going to do. We are at the mercy of these processors who can pretty much impose whatever price they want to and at any given time," he said.
On Monday, the price of chicken meat jumped by $4.30 from $95.50 per kilogramme to $99.80. The increase came despite an assurance from the Government and also local producers that the 260 per cent levy imposed on imported chicken parts several months ago would not affect local prices.
Robert Levy, chief executive officer of the Jamaica Broilers Group, in praising the Agriculture Ministry then on the imposition of the tax, had promised that consumers would not have to pay more for chicken meat produced under the company's popular Best Dressed Chicken brand.
Distributors say they are now fearful that a "floodgate" has been opened for even further increases.
But David Mair, general manager in charge of marketing at Jamaica Broilers, said all its customers had been advised about the pending price increases.
"All our tele reps have been talking to them on a daily basis, explaining the situation. It is not true that people were taken by surprise... I just want to make that clear. Mr. Mair said it was a very difficult decision for the company to increase the price.
"The price of grain went up substantially in the United States and it forced us to resort to a price increase," he said. Also, he warned that if the weather did not improve in the U.S. there could be further increases. "This is not just unique to chicken," he said. "Eggs, pork and oil could also be affected. Consumers can expect to see increases on products that are tied to corn and soy bean grain feed."
Some wholesalers suggest, however, that if the market was "opened up", competition would be such that there wouldn't have been any need for a price increase. "The 260 per cent levy was to prevent this type of situation," said a wholesaler who asked not to be identified.
