The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Bahamian wholesaler yesterday warned that price control regulations are worsening the supply chain crisis and product shortages in food stores.

Jeff Albury, Island Wholesale’s managing director, told Tribune Business that breadbasket items and other price-controlled products are having to sit in warehouses until the Price Control Commission approves price increases to compensate for higher shipping and other expenses.

With supply chains tightening due to raw material shortages, and shipping costs more than tripling, he explained: “The majority of our product comes out of the US. The problems I’m having now are that manufacturers are facing raw materials shortages. All of my suppliers have had to take their product line and reduce the number of items they are producing down to the major sellers.”

Forecasting that raw material shortages will last well into 2022, and that the problem will get worse before it eases, Mr Albury said: “What happens is, if I’ve got a container that’s cost me $5,000 out of China for things like mackerel, now it’s costing me $15,000, I can’t sell mackerel at the same price I was selling it for in 2021.”

Corned beef, evaporated milk, tuna and other breadbasket items will also be affected, and these are the products that “lower income people survive off of, cheaper canned goods”.

Mr Albury explained: “These items are price controlled. I’m sitting on a container right now that I’ve applied for a new price for cooking oil, and last week you couldn’t even find a bottle of cooking oil.

“The price of cooking oil has doubled, and then what happens is that I’ve got a container now sitting in one of my warehouses that I cannot touch because I have to wait for the Price Control Commission (PCC) to give me the permission to sell it at the new price.”

Mr Albury said he would be selling the entire shipment at a loss were he to remove it from the warehouse now. However, obtaining approval from the Price Control Commission can take anywhere from two weeks to two months, he argued.

“With the new government in I’m not sure how long they will take because some of the people aren’t there any more. But we’re going to have to change our eating habits in some fashion anyhow because there are certain things that aren’t available and, if they are, then they’re also available at a much higher price,” Mr Albury said.

“Unfortunately everything we do depends on imports as we don’t manufacture anything to feed our people. Everything we do is an input to our economy.” As a result, he warned that the situation may become worse as US manufacturers focus on supplying their domestic needs first.

Debra Symonette, Super Value’s president, told Tribune Business yesterday that the supermarket chain’s prices will not dramatically increase because it has “a lot of food stacked in our warehouse”.

She added: “There is a back-up, but fortunately we have a well-stocked warehouse so we have supplies on hand, which we are hoping will take us through the crisis. As far as we know our shelves are going to be stocked and there should be no shortage.”

Shoppers are sticking with national brands, and not switching to generic or substitute products yet, Ms Symonette added. “I think it’s going to take a while for them to get used to them, but as they try them they’re going to realise that some of them are really just as good as the other brands. I guess gradually they’re going to start using them more,” she added.