Balteano Duffus, general secretary, Beef and Dairy Producers Association of Jamaica - file

Rising world beef prices have pushed the local cattle sector into a more competitive position, local farmers say, but immediately warned that any move now to ease up on importers could erode those gains and chance to redevelop the industry while the market is hot.

In fact, Balteano Duffus, general secretary of the secretary of the Beef and Dairy Producers Association of Jamaica (BDPAJ), suggested that beef burger was already being sold in Jamaica at prices that appear to be below market.

Beef burger, made from beef trimmings, ranges from US$2.54 to US$2.89 per kilogramme - prices quoted by Costa Rica and Panama, said Duffus.

"When we apply only the duty of 86 per cent," he said in an interview with the Financial Gleaner," the price is coming out at about J$315."

Freight and other charges should add a premium to that price, he continued, but instead, the imported product is being sold here at a price $40 lower.

"On what basis is it being offered locally at $275?" asked Duffus. "That is what we want investigated."

Unsuccessful Attempts

Attempts at comment from the agriculture ministry on the issue were unsuccessful. The Financial Gleaner was transferred to several offices, and eventually to Duffus, who happens to have an office at the Ministry's Hope Road headquarters.

The beef sector, which the BDPAJ secretary says is worth $9.8 billion measured on assets and employs some 7,800 workers, contributes $5 billion to the economy.

But beef production has declined consistently over five years from 13,096 tonnes in 2001 to 10,391 tonnes in 2005, the last available figures. The 26 per cent fall-off was linked by the state planning agency to a decline in beef cattle for slaughter.

Over the same period, other major meat products increased.

Local beef sells for about $45 to $60 per pound, said Duffus, and trimmings for considerably less.

A statement issued by the association highlighting the sector's national contribution follows what it says was a report of plans to allow new concessions for the importation of burger meat.

Yesterday, in the absence of comment from the ministry, Duffus said there has been no waiver, but one importer has applied and there have been meetings on the issue.

"Our association is unaware of - and, in fact, would strongly oppose - the granting of any waiver or concession on duties on imported beef from any country, including Costa Rica, from which we understand that the beef burger meat in question has been imported," he said.

"The reported case of imported beef burgers being offered at what appears to be subsidised prices raises serious concerns, and warrants in-depth investigation."

Duffus told the Financial Gleaner that Jamaica cannot supply the market for beef burger, and is not against its importation.

Beef has had two decades of decline, detailed in a 2005 study by Dr. Paul Jennings, indicating that the cattle population was down to 66,500 heads from the 144,750 heads counted in 1990.

"Translated to job terms, it means that more than 20,000 farmers - primarily at the small and medium-scale levels - have exited an industry that produces beef and milk for local consumption, while some 13,870 persons lost jobs on cattle farms," said a release issued by the beef producers through their publicists Innovative Ideas.

The BDPAJ, said Duffus, is not opposed to beef importation to complement the shortfall in local production, but is against "uncontrolled imports and arbitrary concessions on existing duties."

business@gleanerjm.com