By McPherse Thompson, Staff Reporter 
Robert Levy
THE PRICE of chicken meat and other food products will be increased in the next few months because grains imported from the United States for use in local production have been increased by more than 40 per cent in some cases since March, this year.
Robert Levy, managing director of the Jamaica Broilers Group, made the disclosure as he addressed investors at a monthly forum organised by Mayberry Investments at the Courtleigh Hotel in New Kingston on Wednesday evening.
According to Mr. Levy, while the company faced a number of challenges, including the effect on its operation from the flood rains of May and June, this year, the increase in the price of grains was a greater challenge. "So we are going to see increases in chicken, in bread, in all that we consume, in the next few months," he said.
Jamaica Broilers said that between March and August, the price of corn imported from the United States has been increased by 41 per cent, soyabean meal went up by 35 per cent, and wheat by 38 per cent.
Following the investors forum, both Mr. Levy and Jamaica Broilers' financial controller Ian Persaud, told the Financial Gleaner that grains represented about 50 per cent of the company's expenses, and the 40 cent increase in the price of grains meant a 20 per cent increase in their overall costs.
Late last month, Jamaica Broilers increased the price of chicken meat by five per cent, from $95.50 to $99.80 per kilogramme, because of increases in the prices of grains. Mr. Levy said the full cost was not passed on to consumers because the company had forward bought some of its grains and "so the effect of the increase had not taken us fully at that time." However, he emphasised that the price of chicken meat would now be further increased because of the continued upward movement in the prices of grains.
Mr. Persaud, who was appointed financial controller following the recent resignation of Andrew Phillips who served the company for 12 years, said there were signs that the grain price increases have "peaked out", but they were still watching the market.
CHEMICALS
And the managing director has sought to allay perceptions among some consumers about the use of chemicals in the production of chicken, stating that "no hormones or growth additives are used in the Best Dressed feed operations," or otherwise "in the production of our poultry." In addition, he outlined certain standards by which they operate to demonstrate that the sanitary conditions under which the company operate were of the highest standards.
Mr. Levy said the company was also concentrating on developing its aquaculture processing facilities as fish was now being consumed by more people globally than ever before.
"Our vision for 2010 is that, given the international market for fish, and our experience in tilapia production, ... we will direct our human and financial resources to increase our sales of fish on a profitable basis to surpass that of chicken within the next five years," he said.
Asked whether Jamaica Broilers has not considered patties as a value-added product, given that it was a thriving business as a ready food, Mr. Levy said the company has developed a strategic plan to compete in that market. "Yes, it's an unbelievable business and we have some idea that we will be putting in place," the managing director said.
Jamaica Broilers, which had its best ever performance during its last financial year, saw growth of eight per cent and a profit margin of 4.3 per cent for the 12 months to March, this year. Mr. Levy said that was partly achieved by increased efficiencies in the company's operation, including a restructuring exercise that has helped the company to now produce more chicken per man hour than any company in the United States. Jamaica Broilers has increased its profits by more than 100 per cent since the restructuring, he said.
