The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A former Cabinet minister yesterday revealed he is in the “advanced” stage of exploring whether to revive a Grand Bahama poultry operation that once produced 3m-5m pounds of chicken annually.

Zhivargo Laing, who is the government’s chief World Trade Organisation (WTO) negotiator, confirmed to Tribune Business he and his business partners were examining the feasibility of restarting an operation they “suspended” in 2015-2016.

He explained that changed “circumstances” internationally, and domestically post-Dorian, had potentially created “some room” for Bahamian producers to drive into a local market that consumes around 40m pounds of chicken annually.

As a result, he is studying whether to re-open the Harmony Poultry Producers business he operated for two years on a leased portion of Minas Vardoulis’ Grand Bahama Farm.

Acknowledging that Harmony closed after it suffered some “early challenges” that resulted in “financial setbacks”, Mr Laing said that “having learned those lessons” he had also been informed by international poultry producers that such issues are typical for industry start-ups.

Describing the investment that would be required as “manageable rather than massive”, the ex-Cabinet minister suggested it was possible to re-start operations within one year of the decision being taken.

Recalling that Harmony had created 64 jobs when in operation, Mr Laing said he was especially “proud” that 90 percent of its workforce had been comprised of Bahamians.

“I’m exploring re-opening the farm, yes, myself and my partners,” he told Tribune Business. “I’m exploring the opportunity to bring it back on stream because I think there might be a need for it.

“I actually operated the farm until 2015-2016. It’s the same operation I operated for two years, Harmony Poultry Producers. We just produced chicken for feeding. All it was was broiler chicken, nothing else.”

Harmony leased the poultry facilities and chicken houses from Mr Vardoulis’ Grand Bahama Farm, and Mr Laing said a similar business model - focused on the broiler chicken segment - would be pursued this time around should they decide to move forward.

“The reality is that chicken consumption in the country is very large, and the production is very low,” he told Tribune Business. “There is some room for local producers to produce, which is why I got into it.

“The operation was suspended because early challenges caused us to have some financial setbacks. The idea is having learned those lessons, and given the circumstances in the international community, there might be an opportunity to make a viable operation there.

“The licence for the operation has been suspended, not eliminated. We requested the suspension of the licence in Freeport in the hopes we could maximise the operation at some point. I wouldn’t say we’re close [to restarting] at all. I would say we’re very much in advanced exploration.”

Confirming that Harmony would focus on the domestic market for broiler chicken if it restarts, Mr Laing added that there was “perhaps even a great need” for its revival to occur given the damage Dorian inflicted on the northern Bahamas and this nation’s one remaining poultry producer.

He voiced optimism that Abaco Big Bird farm would soon resume operations and “satisfy some of the market”, revealing that both parties had been in discussions on how they could co-operate to meet some of the Bahamian demand for chicken.

“What it would take to bring the operation on stream in terms of time would not be extensive. If we put everything in place less than a year is possible,” Mr Laing told Tribune Business. “It’s not a massive investment at all. It’s a manageable investment that’s required.

“When we operated it before we had created 64 jobs, and 90 percent of the people who worked there were Bahamian. In the first time in the history of the operation we had reached 90 percent Bahamian employment. It was a new enterprise for us but we were proud of what we were able to do in a couple of years.

“I’ve spoken to operators around the world, and they indicated to me that the early challenges are typical of these operations. Once you overcome them you can build a viable operation. This country can benefit from all kinds of economic activity, and all kinds of efforts to shore up its food security and provide quality goods and services. All and sundry should look in that direction.”

Mr Laing said that based on previous production levels Harmony’s output could be between 3m-5m pounds per year, which would be “significant” for the company but no more than around 10 percent share of the total market.

Yet the ex-Cabinet minister and his business partners, who he declined to name, are not the only Bahamians to examine the possibility of starting a poultry operation. The Bahamas Striping Group of Companies last year unveiled plans to invest $10m in developing poultry farms and processing facilities on Andros and Eleuthera, together with a New Providence distribution centre, only to place them on hold citing uncertainty over the outcome of The Bahamas’ WTO negotiations.

“Entrepreneurship is not easy,” Mr Laing said. “Sometimes you win, and sometimes you lose. Sometimes you succeed, sometimes you don’t, but where would be if people did not take a chance? It’s agriculture, and quite frankly enthusiasm about agriculture is not great. It’s something to work on for sure.”