John Myers Jr., Agriculture Coordinator

Harold Hoyte (centre) examines a recently-hatched chicken with Robert Levy (right), while on a tour of the company's hatchery in White Marl, St. Catherine, recently. Assisting them is David Taylor (left), manager of the hatchery. - contributed

Farmers could be asked to pay higher prices for animal feed as the price of corn, which is the main ingredient used to manufacture the product, spirals out of control in the United States.

In a release issued to the media, the feedmill operators, which include Jamaica Broilers - manufacturers of Hi-Pro Feeds and Caribbean Broilers - makers of Nutramix Feeds, said this was placing their operations under severe "financial pressure".

They pointed out that between January and September, the price of corn loaded in the United States golf region increased by 18 per cent from US$104 ($6,760) per metric tonne to US$123 ($7,995) per metric tonne. The US is the largest commercial producer of corn. Jamaica imports approximately 200,000 tonnes of corn annually from the US.

The feed millers said the sharpest increase occurred between May and September when the price of corn moved from US$107 ($6,955) per metric tonne to US$123 per metric tonne. They pointed out that the price increased by 23 per cent overall when compared with the same period last year.

High demand

Dr. Keith Amiel, president of the Caribbean Agri-Business Association and corporate affairs manager at Caribbean Broilers explained that the high demand for corn and soya to produce ethanol was driving the increases. He emphasised that "the cost of grain to the local market could remain high because of the mandate given to each state in the US to produce 10 to 18 per cent of the fuel requirement for the country."

Conley Salmon, vice president with responsibility for marketing feeds and agricultural supplies at Jamaica Broilers said the cost for corn accounted for 60 per cent of the overall production cost of manufacturing animal feeds at his company. Jamaica Broilers manufactures about 220,000 tonnes of animal feed annually.

"Up to this point, the island's feed millers have absorbed most of the costs instead of passing them on to the consumer," he emphasised. But he warned that "this situation is not sustainable."

Mr. Salmon explained that feed manufacturers could be forced to raise the price for animal feed, which would push up the cost for grain-fed protein sources such as chicken meat, beef and dairy products.

Unavoidable

The feed millers contended that a price increase appeared unavoidable as the increasing price of electricity due to rising oil prices was further compounding the already high production costs.

Senator Norman Grant, president of the Jamaica Agricultural Society (JAS), in reacting to the warning by feed manufacturers, suggested that the government provide a buffer to guarantee that farmers and consumers benefit from stable prices.

He said "the JAS would be more than willing to collaborate with the local feed millers to find a reasonable price structure to the benefit of all concerned."