Chicken Prices Slashed in Jamaica24 December 2009
JAMAICA - A cut in poultry meat prices will reduce Jamaica Broilers' revenue by an estimated $4 million.
The promised rollback in the price of chicken parts by the leading poultry producers will cut into revenues, the country's top company told Jamaica Gleaner, adding that the shortfall will have to be covered by cutting expenses.
The special will run for one week.
Chris Levy, president and chief executive officer of Jamaica Broilers Group, said: "It is going to cost us $4 million. But in order to minimise the impact on our bottom line, we will take some of it from the PR and advertising budget."
On 23 December, two government agencies announced a 19 to 20 per cent reduction in the price of chicken parts – leg and breast quarters – between December 18 and 24, after the two main processors agreed to distribute a combined 250 tonnes of the product at a concessionary price.
Caribbean Broilers' chief spokesman, Dr Keith Amiel, was said to be off the island, and no one else was prepared to speak on the issue.
To facilitate a price reduction to consumers, the processors agreed to take a 10 to 12 per cent cut in margin, while the distributors agreed on a 7.5 per cent price margin reduction. Combined, this represents a price decrease of $46 to 54 per kilo to consumers purchasing amounts of five kilos or more.
Normally, the Government allows the importation of the product in response to increased demand during the Yuletide season, according to Jamaica Gleaner. However, Agriculture Minister, Christopher Tufton said, the approach this year would ensure that Jamaican farmers and processors could take off their excess stock, while providing a benefit for consumers.