Govt Policy Forces Future Chicken Price Rises

by 5m Editor
7 May 2010, at 11:17am

FIJI - Wholesale prices will rise by five per cent on 17 May, and further regular increases are scheduled.

Consumers will be paying 11 per cent more for chicken, according to Fiji Times. The move – part of a nine-month deal announced by Trade Ministry head, Aiyaz Sayed-Khaiyum – will take place in stages, beginning on 17 May.

However, prices could rise further because some retailers are selling chicken as much as 33.5 per cent over wholesale prices.

On 6 May, the Prices and Incomes Board confirmed under price control retailers were only allowed a 12 per cent mark-up on wholesale (bulk) prices. Wholesalers were allowed a four per cent mark-up.

PIB deputy secretary, Lusi Naimawi, said they would look at why some retail prices were as much as 33.5 per cent above wholesale costs but factors such as transport costs may have come into play.

Fiji Times reports Mr Sayed-Khaiyum saying that wholesale chicken prices will rise by five per cent on 17 May, then two per cent every three months until February 2011. As part of the deal, people on food vouchers will from Monday receive a 25 per cent discount on soup packs.