THE PRICES of chicken meat has again jumped, bringing the increases since August to 71/2 per cent.
As of Monday, consumers can expect a further 2 1/2 per cent hike in the prices of chicken produced by the Jamaica Broilers Group, a direct result of the increase in the price of grain on the world market, according to Group President Robert Levy.
This still falls short of the total that the Group absorbed for the six month period beginning in March, Mr. Levy said yesterday.
"Our decision to absorb the increases, at first, was based on a desire to hold chicken prices at their current rate," he said. "However, when the anticipated fall in world grain prices failed to materialise, we felt we had to act to protect the viability of the company."
Jamaica Broilers is the largest supplier of chicken under the Best Dressed Chicken brand, holding about 60 per cent of the lucrative poultry market. Since March, products such as corn, soya beans and wheat have risen, in some instances by more than 40 per cent, as drought and flooding in certain grain producing parts of the United States have resulted in a reduction in the production of grain, a release from the company said.
As production decreased, prices have increased, resulting in significant hikes in the operating costs of local entities that use grain as a major production input.
The prices of eggs and pork will also be affected.
Mr. Levy said that the 5 per cent increase that was imposed was a "holding position," as the Group began to utilise the more expensive feed resulting in a direct impact on broiler production costs.
"We are aware of the impact on consumers and in our efforts to ensure that they are not unduly affected, the Group continues to absorb a greater portion of the increased costs. Additionally we are trying to offset as much of the remainder as possible through implementation of cost saving measures in other areas of the Group," he said.
The last increase came despite assurances from the Government and suppliers that a 260 per cent levy imposed on imported chicken parts several months ago would not affect local meat prices. Wholesalers said then that they were fearful that a floodgate had been opened for even further increases.
