The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A leading food retailer has urged all parties in the chicken imports debate not to ignore the tastes of Bahamian consumers or “unbalance the supply chain”.

Speaking after V Alfred Gray, minister of agriculture and fisheries, recently mulled imposing a ban on imports if Bahamian buyers failed to comply with regulations requiring them to purchase at least 30 per cent of their chicken locally, Gavin Watchorn, AML Foods’ chief executive, called on all sides to avoid a “knee jerk reaction” over the issue.

Emphasising that the BISX-listed food retail group stocked chicken sold by Bahamian producers, such as Abaco Big Bird, and that the product “sells very well”, Mr Watchorn suggested that the Government avoid imposing its tastes on consumers via regulation.

“No one is listening to the consumer. If consumers don’t want US or foreign chicken, they wouldn’t buy it.” the AML chief executive told Tribune Business.

“From the retail side, most businesses I know are supporting local chicken producers; they do buy it. Where we’re not getting support is in other areas.”

Mr Watchorn told Tribune Business: “We obviously need to support Bahamian businesses and manufacturers, but rather than impose product on Bahamian consumers, maybe look at ways to make these businesses more competitive against imports through different duty and energy rates.”

Effectively arguing that consumer welfare would be undermined were the Government to issue a total ban on chicken imports, Mr Watchorn added: “Ultimately, you’re talking about the growing population of Bahamian consumers being forced to adapt for a small number of individuals.

“Don’t unbalance the supply chain. We have to be mindful and respectful of consumer choice. Consumers ley you know very quickly; they vote with their feet. In all this debate no one’s talked about what the public wants.”

Last month, Mr Gray threatened that a ban on chicken imports could be forthcoming unless wholesalers comply with a policy geared to support the purchase of Bahamian products.

That policy, the Minister said, has sanctioned the Bahamian wholesale buyer to show that a specific percentage of their inventory was purchased from Bahamian farmers. As it stands, the majority of chickens sold in the Bahamas are from Brazil.

“At this moment,” he said, “there is in place a policy, where the Bahamian buyer must show that he purchases 30 per cent of the chicken he needs, [or] 30 per cent of the eggs he needs, in order to get a permit to bring in 70 per cent.

“I intend to stop the import if that must happen, so I beg them to cooperate so we don’t heighten or raise the bar.

“I am not saying that I have done it today, but if they continue to avoid buying locally, that will be the next step.”

His announcement was prompted, Mr Gray said, as the compliance level by wholesalers with the stipulation is at an estimated 50 per cent.

“We met with about 12 (or) 13 buying, either company or individuals, and I would say about six or seven are complying with what we say. Unless all of them do it, there will be no affect on the bottom line because the larger purchasers use 700 to 800 cases per week. If all of them buy 30 per cent of what they need, 200 (or) 300 hundred cases, I would think that would be a good start,” Mr Gray said.