Caribbean Broilers cutting prices amid energy savings
Caribbean Broilers Group (CB) is urging distributors to pass on the reduced prices of its products to consumers, amid energy savings from oil, which have seen the meat and animal feed producer lowering costs.
Manager of Corporate Affairs Dr Keith Amiel further noted a reduction in the grain prices worldwide, which, coupled with reduced utilities for the company, has led to lower production costs, allowing CB to cuts, the cost of all its meat products.
CB will reduce the cost of its pork products by $4 per kilogramme, with broiler meat to be reduced by $4.90 per kilogramme. Feeds produced by CB will also be cut by $40 per bag when the changes take effect on Monday.
"But we hope they will be passed on to the consumer and not kept back by the intermediate retailers, the wholesalers, and supermarkets," Amiel said.
With the reduced cost of transportation, CB will be able to push its products faster to retailers islandwide, and the reduced prices should also create a stimulus for small farmers, who produce 30 to 40 per cent of all the animal protein, to increase their production, he said.
However, with demand and supply of eggs in sync over the Christmas period, he urged a careful watch on production to mitigate a glut, which could ensue were farmers to take advantage of reduced costs to boost output.
'The danger is because all the small farmers have been able to sell their broiler and eggs over the period; everyone will say: 'Let us get into it for 2015!' Amiel said.