Garwin Davis, Assistant News Editor
DESPITE assurances from the Government that the proposed 260 per cent levy on imported chicken parts would not affect local prices, there are signs that prices have jumped, some wholesalers say.
They claim that since last week there has been a noticeable increase in the price of local mixed chicken parts, moving from $87.00 per kilogram to $95.50 for the B grade and $99.20 to $103.20 for the A grade.
This they say is contrary to what the Ministry of Agriculture had said when the levy was announced, and they are now fearful that there could even be further increases.
"Yes, there has been an increase," notes Garfield Kerr, manager of Sparkling Meats Wholesale in St. Ann's Bay. "I asked the sales representative about it and he said that he, too, was surprised. I can't say I am surprised though, as the fact that such a huge levy will soon be placed on the imported parts means the local suppliers can pretty much do whatever they now want to do."
The Government, several weeks ago, announced a 260 per cent hike in duties on imported chicken, chicken-parts and vegetables. The announcement, which is expected to take effect in the coming weeks, was greeted with a positive reaction from local farmers and meat suppliers whom hailed the tariff as "a move in the national interest."
According to Jamaica Agricul-tural Society (JAS) President, Bobby Pottinger, the Minister acted in the interest of local farmers, noting that the low prices for dumped chicken and vegetables have deterred traders from purchasing local products.
"This whole thing about helping the local farmers was simply a feel-good speech," notes Julius High, owner of Lisa's Top Quality Wholesale in Kingston. "Prices as expected have already increased. I tell you it won't be the farmers that benefit, it will be those who can and will capitalise on the situation."
Mr. High notes that wholesalers like himself would now be at the mercy of the local suppliers, saying "they can now dictate to us what to do we have very little say."
Dismissed claims
The Sunday Gleaner tried to get a few local suppliers to comment on the situation but nobody wanted to come on record.
One supplier, however, dismissed claims that there was an increase, noting that what the wholesalers were seeing was the end of a special that had been in place.
"Prices have simply returned back to where they were before," he said.
Asked if it wasn't too coincidental that the specials should end as soon as the massive levy on imported chicken parts was announced, he said "there's no deception going on here, we have been running a special which has ended. This happens from time to time and the wholesalers can attest to this."
A Sunday Gleaner article on April 28 had quoted Robert Levy, chief executive officer of the Jamaica Broilers Group as saying that consumers will not have to pay more for chicken meat produced under the company's popular Best Dressed Chicken brand.
Jamaica Broilers is Jamaica's largest supplier of chicken, holding about 60 per cent of the lucrative poultry market. Mr. Levy had said that there would neither be an increase in prices nor shortage of the meat, following the announcement that imported chicken will attract a 260 per cent duty as of May.
Meanwhile, Ray McMaster, owner of McMaster's and an importer of meat supplies agreed that "a special" had been going on for chicken parts and that prices had returned "to normal".
"It is heavily rumoured that prices will be increased but I don't think it has happened as yet," Mr. McMaster said. "In the end poor people will be the most affected -- they are the ones who benefited most from the imported chicken parts and will now be forced to pay more I tell you the day the levy comes into effect I will never import another piece of chicken."
But others are insisting that prices have increased.
"A special is something that lasts for a couple of weeks the most," one wholesaler noted. "I don't need anybody to tell me what a special is... there has been an increase and its only done because there is no longer competition from the imported parts."
Agriculture Minister Roger Clarke could not be reached for comment.
He, however, had made it clear earlier that the high duties would not continue indefinitely. Imported chicken parts currently attract an 86 per cent duty, while that for vegetables is almost 40 per cent. Jamaican chicken processors have for years been complaining that imports were negatively impacting on their operations.
