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Stabroek News

Poultry farmers feel the pinch of high electricity bills
published: Thursday | November 9, 2006

Poultry farmers contracted to the Jamaica Broilers Group have begun to feel the pinch of high electricity bills. The farmers contend that they will be forced out of business if the high rates prevail.

In a meeting with representatives of the Jamaica Public Service Company (JPS) on October 27, the group complained that their electricity bills in recent months had risen significantly and were eating into the margin of profit made from rearing poultry on behalf of Jamaica Broilers - the country's largest commercial poultry producer.

Dean Lee, president of the National Poultry Growers Association, said the farmers wanted to see a reduction in their bills and were requesting that they be placed on a rate schedule that would allow them to achieve the greatest level of efficiency to minimise production costs. The farmers wanted the utility company to adjust their bills to a bi-monthly cycle. As Mr. Lee explained, this would allow the farmers to better manage their costs. He pointed out that it takes six weeks for the birds to mature, at which time they are delivered to the broiler company, after which the farmers receive payment.

Up to 32 per cent

In an interview with The Gleaner on Tuesday, Mr. Lee explained that electricity costs used to account for between 18 and 22 per cent of the gross proceeds from his 42,000-chicken house operation. However, he lamented that electricity costs now account for more than 32 per cent of his gross proceeds.

This, he contends, was unsustainable, and if continued, farmers would be forced to close their operations and seek alternative means of earning a living.

The meeting, which was organised to educate farmers on how to better understand the reading of electricity meters and the various charges reflected on their accounts, changed focus as the farmers voiced their concerns.

In responding, the JPS representatives pointed out that the company's billing policies were guided by stipulations set by the Office of Utilities Regulation (OUR) and, therefore, would require the intervention of the utilities regulator. As it relates to billing costs, they emphasised that JPS's pricing practices were in keeping with international standards.

Pamella Russell, manager for field and feed mill operations at Jamaica Broilers, committed to lobbying the OUR for a change in the billing cycle on behalf of the farmers.

"It is urgent for us to work through these issues as quickly as possible because the very survival of the poultry industry in Jamaica depends on that resolution," she said. Ms. Russell said the company would organise other meetings with the JPS and OUR in an effort to have the farmers' concerns addressed.

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