For the first time in several years, poultry producers are confident that the supply of chicken will be adequate for the holiday season, but they are still looking for the big sales.
Over recent years, as the holiday season approached, government would be forced to intervene and allow chicken imports to stave off shortages and keep prices stable during the season. That has not been the case this year.
Patrick DeGroot manager of Bounty Farm Limited, one of the major supermarket suppliers of the product, said chicken supply from Bounty for the Christmas season was “very good.” Bounty increased the price of chicken this year, but is not expected to have any more price increases over the holidays. DeGroot said there would be no more price increases until next year.
The sale of chicken was described by DeGroot as “looking good,” though he expects this would pick up.
He said increases in the prices of soybean and corn on the international market have hiked the production cost of feed and this had contributed to the price increase in chicken. The prices of these products have increased because more corn is being used to feed the ethanol drive and soybean is being used in bio-diesel.
According to DeGroot, the farm faced a 62% increase in these two feed inputs and with each monthly shipment, prices are going up on an average of 6%.
Poultry producers usually substitute rice for corn, but DeGroot said because the last rice crop was small the farm was not able to receive even half the quantity of rice it would need for feed production. Corn now makes up 60% of the feed. The price for exported rice increased US$65 per tonne in the last crop.
Garib Farms Supervisor Baynu Roopnarine agreed also that there would be no chicken shortage for the holidays and therefore no need for imported chicken. The demand was also said to be stable. Garib, located at 107 Middle Road, La Penitence, is retailing chicken at $240 per pound and $200 per pound wholesale. These prices are reflective of current municipal market prices and are stable in comparison to prices over the holidays for the last two years, when chicken cost as much as $300 per pound.
Another large poultry producer, who asked not to be named, said as well that, “chicken plenty”. In fact this producer felt there might be a glut on the market, since a lot of small poultry farmers had high production.
However, he was concerned about spending power, since inflation at 13.3% was higher than the 9% wage increase the government had given public servants. This poultry producer retails chicken at $200 per pound, while wholesale prices are based on quantities purchased.
A director at Iman Bacchus and Sons Limited of Affiance, Essequibo told this newspaper that there was an ample supply of chicken. Iman Bacchus, apart from being a poultry producer, also operates a rice milling and manufacturing company.
With regard to sales, however, he said there was “no big rush yet.” He expressed the hope that as persons begin receiving their December salaries and bonuses, sales would pick-up.
On the other hand, egg prices have begun their annual year-end climb and prices are expected to increase even further, before the season comes to an end.
The management of Edun’s Poultry & Hatchery at 24-25 Busby Road Craig, one of the major egg suppliers, was not available to comment on the company’s ability to supply the market.
However, based on information garnered from egg vendors at the city’s municipal markets it was the vendors who determined the price of eggs.
Eggs are currently being sold at over $600 per tray and three or four for $100 at city municipal markets, while vendors are able to purchase eggs wholesale for around $540 per tray.
The wholesale price is up from last year’s, which was under $400 per tray, depending on the size and quantity of eggs being purchased. Egg prices have also been affected by high corn price, because corn is used to feed the layers.
