Dear Editor,
The current price of chicken has no bearing on prices of feed from Guyana Stockfeeds Inc. Instead it is due to cyclical variations in the production and supply of chicken locally. Our prices have been reduced by 10% over the last four months, yet chicken prices moved from $150 per pound to $180-$240 per pound currently.
Farmers were seriously affected by a long period of glut in supply which started some time in May 2009. As a result they cut back production until their inventory was sold. At the same time some hatcheries stopped the importation of hatching eggs which further reduced supply by reducing the availability of day-old chicks.
Guyana Stockfeeds has never curtailed the importation of hatching eggs; actually it has over the last two months increased its supply of day-old chicks, hatching 600 cases per week or 60% of the local market.
It has at all times recognized its responsibility to farmers and the wider consumer. In this regard it has ensured adequate supply of high quality feeds at competitive prices. It absorbed all price increases during the latter half of last year when grain prices escalated. This year so far it has reduced prices by 10% to $4500 per bag of Broiler Starter after rebate. Even with this reduction feeds are being retailed for as much as $5000 per bag.
Recent reports of government issuing licences for the importation of feed to encourage competition is misguided and uninformed. There is no restriction on the importation of feed. In fact imported feeds are available on the local market from Trinidad and Jamaica but they are of lower quality and more expensive. We have no monopoly on the supply of feeds as there are other suppliers.
Guyana Stockfeeds Inc will not apologise for its strong market position. This position has been built by years of hard work, investments and commitment to our farmers and the local economy.
Even with discrimination in the granting of concessions to the poultry industry and deliberate obstacles by government officials, it has invested in excess of $2.5B in the last 10 years to enhance quality, build capacity and diversify its business. Its business supports the livelihoods of thousands of poor Guyanese farming families all across Guyana from coconut dryers, poultry farmers, rice farmers and truck drivers. It employs more than 250 persons.
In contrast, many, including one large company, have been given huge concessions of tax holidays, duty free concessions, duty free vehicle, etc, to produce chicken with no impact on production. In addition importers pay no taxes, add no value, employ no one, and use no local raw materials.
Had anyone from the government talked to us, as we are always available for constructive discussions, they would have been in a better position to understand the reason for the current supply and price of chicken on the local market.
Yours faithfully,
Robert Badal
