President of the Bahamas Poultry & Egg Association Bruce Hanson, in a statement released to The Guardian said local producers are secure that with this new environment, the industry would be able to survive.
Members of the Bahamas Poultry & Egg Association, this past June/July demonstrated their aggravation over the poor market conditions for chicken (broiler) meat.
The Association, in a press conference, had highlighted their frustration with the large quantity of illegally imported U.S. chicken meat by calling on the government of the Bahamas via the Ministry of Agriculture, Fisheries and Local Government to take action immediately as the poultry industry was in serious peril.
Producers were facing expanding inventories both in the freezers and on the farms as sales were at crippling low levels, a problem it had experienced for several years.
The industry was placed in this dilemma commencing in 1998 when the government reduced the tariff on broiler meat. This opened the door to cheap imports, particularly leg quarters which, in some instances, Bahamian importers were able to purchase at prices below production costs.
In essence, leg quarters became a by-product of the U.S. broiler industry and had the potential to disrupt the market conditions for producers throughout the Caribbean, including The Bahamas. Attempts by the industry to convince the previous government to stabilize the industry as other countries do had not been unsuccessful.
It is this background which caused members of BPEA to appeal to the Minister of Agriculture, Fisheries and Local Government V. Alfred Gray, for action to save the broiler industry from financial ruin and market instability.
“Minister Gray responded positively to the call of local poultry producers by initiating corrective measures which have resulted in vastly improved marketing conditions,” Mr. Hanson said. “Broiler producers are now disposing of all of their products.”
In New Providence, broiler producers (O’brien Farm, Diamond Farm and Gladstone Farms) have all reported the ability to sell their products and in the case of Gladstone Farms the inventory of frozen products have been virtually depleted. In Abaco, Abaco Big Bird is able to supply the local Abaco market with surplus being sold in New Providence. In Grand Bahama, Bahama Poultry has reported steady sales. Overall, market conditions have vastly improved.
“It is within this framework that the members of BPEA wish to express our deep appreciation for the efforts which were taken by Minister Gray and his ministry to alleviate conditions which had the prospects of destroying broiler production in The Bahamas,” Mr. Hanson said.
He added though that, “Attempts by the industry to convince the previous government to stabilise the industry as other countries do had not been successful.”
Mr. Hanson also observed that Minister Gray’s policies, unfortunately, cannot resolve all immediate problems that were created over recent years, however they have restored confidence in an industry which was on the brink of dissolution.
“Producers now feel that with this new environment and improved market conditions, the industry can now expand through new investment opportunities to increase output, diversify product base and enhance the value-added component to local products,” Mr. Hanson said.
