Despite the immediate impact the closure of Gladstone Farms Limited had on the poultry industry of The Bahamas, almost two months later, things have levelled to the point where the market has absorbed the loss and has rebounded.
This, according to Minister of Agriculture & Fisheries V. Alfred Gray in an exclusive interview with The Guardian over the weekend.
He said that there are sufficient amounts of locally produced chicken, so much so, that the ministry has had to band the import of chicken for the last nine days.
Companies like Abaco Big Bird and Grand Bahama Poultry, he said, are producing enough chicken at the moment to keep the market going.
“The immediate impact has leveled to the point where the market has absorbed the loss and has rebounded as such, that there is a sufficient amount of chicken locally to cause me to have imposed a band on whole chicken imports,” Minister Gray said. “To that extent, it seems that the market has now rebounded and that the market is going well.”
The band stems from concerns by local poultry farm owners last year that chicken production in the country was in peril. The main reason was because large amounts of imported chicken were beginning to outstrip the domestic supply. A call was then made on the Government to maintain high duties and tighten administrative practices to control illegal imports.
The band is still on and according to Minister Gray, it will remain in place until the market dictates otherwise.
He said that it is unfortunate that Gladstone Farms had to close, as reasons behind its closure, seem to be many and varied. An important matter added to that, was the fact that over 200 people were put out of work.
“This was something that the Government was not happy about, but there was really nothing we could do,” he said, “by the time we became the Government, it was almost an impending closure which we tried to prevent but could not at the end of the day.”
Gladstone Farms Ltd. workers were terminated after the leading poultry company, which racked up a debt of over $8 million dollars, failed to pay its creditors, which included Canadian Imperial Bank of Commerce, which had appointed a receiver and manager to take control of its assets. In order to settle the debts owed, the farm’s assets are now in the process of being sold.
Minister Gray said the impact the farm’s closure has on the economy is obvious, as there are over 200 people left unemployed and who are unable to produce or make any contribution to the national GDP.
Likewise, any person who is out of work affects the national economic position of the country.
He added that there could be no replacement for the lost jobs without the re-opening of a similar facility for those people. If all goes well, he said, maybe they can be absorbed in other areas of the economy.
“That is the greatest concern that we have had as a Government and hopefully we can do something about getting a purchaser to conclude the agreement on the discussions,” he said. “Hopefully that will come to some head in the not too distant future.”
He said the discussions for sale is ongoing and that to his knowledge, an agreement has not been reached. Minister Gray said that as long as people are talking about it, there is hope and that is where the situation is right now.
By Lisa Albury, The Nassau Guardian
