Consumers to pay more for meat, dairy
Published:Thursday | January 20, 2011 | 12:00 AM
Anastasia Cunningham, Senior Gleaner Writer
Consumers will have to brace themselves for an increase in meat and dairy products, as the price of wheat, corn and soybean has reached an all-time high on the world market.
In fact, price adjustments have already started to take effect and a gradual increase is expected to continue over the next few weeks.
The heavy flooding in Australia, one of the world's top exporters of wheat, as well as the cold, dry weather in North America and China, and droughts in Russia and Argentina, led to a huge surge in wheat prices this past week, which triggered concern on the global market.
And with an Environmental Protection Agency (EPA) decision to raise the blend requirement from E10 to E15 for 2007 model and newer vehicles, corn production shot up, which also impacted the price.
The economy, high demand and cost of production have also increased the cost of soybean.
The domino effect has filtered down to Jamaica, as livestock farmers depend heavily on the importation of these products to feed their animals.
Chicken meat, the main product to be affected, will see an increase within the next few weeks.
Conley Salmon, vice-president - marketing feed and agricultural supplies at Jamaica Broilers, said depending on the producer, he expects an increase in chicken meat by two to four per cent over the next two weeks.
Salmon does envision a bright side to this, however.
"This is going to create an opportunity for small farmers in Jamaica who can produce broiler meat efficiently with much lower overheads, who can now supply consumers in their neighbourhood at a cheaper price. Local farmers can benefit from it," he stated.
Gradual increase
Dr Keith Amiel, corporate affairs manager for Caribbean Broilers, said consumers should not expect a big jump in the price, but a gradual increase over time.
"We have been holding it down for as long as possible but we can't contain the cost any longer," said Amiel.
He noted that Caribbean Broilers has already increased grain prices by five per cent on Monday.
Richard Miller, acting chief executive officer of the Jamaica Dairy Development Board, said there was no question that the increase in products on the world market would affect prices of local dairy products. However, he did not expect the increase to be significant.
Meanwhile, president of the Jamaica Egg Farmers' Association, Mark Campbell, said his industry has been receiving the news of feed product increases with "great trepidation".
Campbell said, with feed taking up 60 per cent of the cost of producing eggs, overall costs would be significantly affected.
"Unfortunately, we can't help but pass it on to the consumer or we will have to close down the industry."
He said there has been an increase in eggs over the last three months, which will continue. "We know it is difficult on the consumer, but there is nothing we can do about it. We have to brace ourselves for some tough times ahead. We will have to make some tough decisions," he said.
Henry Rainford, chairman of the Jamaica Livestock Association Ltd, said there would also be an increase in the cost of meat products.
Citing a drastic decrease in beef and cattle farming, coming from 350,000 heads combined 10 years ago, to less than 60,000 heads today, Rainford said it would help if Jamaica subsidised the importation of corn and soy mainly for livestock feeding by local production.