Chicken special to cost Jamaica Broilers $4m

Published: Friday | December 18, 2009


The promised rollback in the price of chicken parts by the leading poultry producers will cut into revenues, the top company said Wednesday, a shortfall it plans to cover by cutting expenses.

The special will run for one week.

"It is going to cost us $4 million," said Chris Levy, president and chief executive officer of Jamaica Broilers Group.

"But in order to minimise the impact on our bottom line, we will take some of it from the PR and advertising budget."

Two government agencies on Wednesday announced a 19-20 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 250,000 kilogrammes of the product at a concessionary price.

Caribbean Broilers' chief spokes-man 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 10-12 per cent margin cut, while the distributors agreed on a 7.5 per cent price margin reduction. Combined, this represents a price decrease of $46-$54 per kilogramme to consumers purchasing amounts of 5kg or more.

Normally, the Government allows the importation of the product in response to increased demand during the Yuletide season, but 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 to consumers.

mark.titus@gleanerjm.com

 
 
 
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