The Government is looking to allow the temporary importation of leg quarters into the country as part of mitigation efforts to cushion the continued increase in the price of poultry products.
Agriculture and Fisheries Minister Pearnel Charles Jr, who made the announcement in the House of Representatives on Tuesday, noted that the price of chicken has increased by 17 per cent during the past year. And, Jamaica Broilers, the country’s leading supplier of poultry products, last week announced a further 10 per cent increase in the price of chicken that is slated to take effect month-end.
“In order to provide Jamaican consumers with an affordable alternative source of protein, one of the options being considered is the temporary suspension of the CET (common external tariff) and additional stamp duties levied on leg quarters,” Charles Jr said.
He explained that currently, the price of leg quarters within the local market is at $360 per pound “while we would be able to import leg quarters at $100 per pound and have consumers paying roughly $160 per pound”.
“This would allow Jamaican consumers to purchase at least three times the quantity of poultry meat than they are currently able to afford. Leg quarters are readily available at more competitive prices than other chicken parts currently being utilized,” the minister stated.
He stressed that the move would be short term in nature.
“Let me emphasize that this would be a temporary measure until the local market re-calibrates to normal levels where supply matches demand, as was successfully done before when the country faced a similar crisis,” he said.
Charles Jr said his ministry has taken the situation seriously.
“…And we have been in dialogue with the relevant stakeholders in the poultry industry with a view towards implementing strategies to reduce the level of increase that is passed on to consumers,” he added.
“We are aware that these issues, if not addressed, could lead to further increases for poultry products. As a result, the ministry is exploring several practical solutions within the short to medium term to mitigate further increases and to work with all stakeholders to continue to ensure the sustainability of our food supply,” the minister continued.
Meanwhile, Charles Jr also announced that $50 million in support will be provided to farmers who are facing challenges such as a severe shortage of baby chicks.
The money is to be used to assist with the purchase of feed, chicks and medication through the Rural Agricultural Development Authority.
“We have heard the complaints of our farmers regarding increased prices in fertilisers and inability to secure baby chicks, among other things. It is for this reason that I am taking steps to immediately assist our farmers and provide well-needed relief in these most challenging times,” he said.
The newly appointed minister told the House that with 75 per cent of baby chicks imported and Jamaica Broilers only able to supply 40 per cent of its needs from it hatchery, the Government would move to provide incentives for anyone interested in entering the marketplace.
Meanwhile, Opposition Members of Parliament voiced concern that individuals granted licences to import leg quarters may not pass on the savings to consumers as has happened in the past.