By Tyrone Reid, Staff ReporterTHE GOVERNMENT is contemplating a reduction or removal of the hefty 260 per cent tariff it imposed on imported chicken and chicken parts in June 2002.
This, according to Agriculture Minister Roger Clarke, is being reviewed as a counteractive measure geared towards protecting consumers from the recent price hikes in native poultry.
The imposition of the duty, which was criticised and opposed by United States Ambassador to Jamaica Sue Cobb and local traders, was implemented with the assurance from local chicken producers that not only could they adequately supply the market but were confident there would not be much if any increase to the price of chicken. That promise would, however, be shortlived, considering the more than four times the price of chicken has gone up over the past 15 months. There has also been a reported shortage of supplies in recent times.
"The only thing that could rectify the situation is if there were no duty on the imported chicken because the price of the imported meat has also gone up... the only thing that we can do now is if we were to reduce the duty on imported chicken," Mr. Clarke told The Gleaner in an interview yesterday.
ACTING IN THE BEST INTEREST
He said that while he understood the plight of local chicken producers Jamaica Broilers and Caribbean Broilers the Ministry must 'act in the best interest of the consumer.'
"They have a case but you know we have to do everything that we can do to cushion the impact on the consumer," Mr. Clarke said, labelling the situation as 'a cause for concern'. The Agriculture Minister said that since the Government does not possess the power to dictate market price, their options to help stabilise the market were limited.
The Agriculture Minister added that he would be attempting to convene a meeting today, "to really have an in-depth look at the whole situation because it is causing concern as far as the cost of living index is concerned."
Earlier this month, Caribbean Broilers Jamaica Limited increased the cost of their chicken by three and a half per cent but warned that a similar increase would be implemented shortly.
Speaking to The Gleaner then, Dr. Keith Amiel, corporate affairs manager at Caribbean Broilers Jamaica Limited, said that chicken prices are expected to rise gradually over the next two months. "We won't be doing it in one blow, it will be done in stages, maybe 3 1/2 in the first month and another 3 1/2 in the following month," explained Dr. Amiel.
At that time, their counterparts, Jamaica Broilers, denied that they too were contemplating a price increase. David Radlein, the company's marketing manager, said: "We at this point haven't planned an increase. Nothing that I am aware of."
However, effective today, Jamaica Broilers will be implementing a three per cent increase on the price of 'A-grade chicken' and some of the associated products. Mr. Radlein, in confirming the increase, stressed yesterday that 'we haven't moved on our chilled tray parts and a number of others.'
Both broiler companies have attributed the price increase to the mounting soybean and corn prices.
"We have received price increases on corn and soya on this last shipment which arrived just last week. (Corn and soya) represents a fair bit, quite a large part of the input into the chicken," explained Mr. Radlein.
Still, there seems to be no comfort zone for the consumer as Mr. Radlein added that future increases are dependent on what is happening with the price of grains on the world market, which his company does not dictate.
