CB Foods has hiked the price of its chicken by six to eight per cent, with the increase taking effect on Monday, February 7.

The company, in hiking the price, said in a note to customers that the move was caused by the impact of the “continued global supply chain disruptions and further devaluation of the Jamaican dollar”.

The company’s increase comes a week after its main competitor, Jamaica Broilers Group (JBG), hiked prices by 10 per cent.

CB Foods last increased the prices on its products by 5 per cent on September 10, and between five to eight per cent in September 2020, citing also the global supply chain disruptions, increased commodity prices, and the depreciation of the Jamaican dollar to the United States dollar.

CB Foods produces its branded chicken along with Copperwood pork, Caribbean Passion hams, Bad Dawg Sausages, and Smart Eggs products. CB Foods is a division of the CB Group.

The Jamaica Observer sought comment on the new rounds of increases from Head of Regional Development Alicia Bogues but no response was received up to press time.

The increase in the price of chicken by various processors resulted in the Government of Jamaica (GOJ) considering the temporary suspension of the common external tariff (CET) and additional stamp duties on imported leg quarters. This was proposed by Agriculture Minister Pearnel Charles Jr in Parliament on January 25.

Charles Jr explained in his presentation that this measure would be a temporary solution to ensure poultry remains affordable to consumers. This is during a time when the price of chicken meat has increased by 17 per cent to $620 per kilogramme in the last year. The GOJ has already implemented a $50-million subsidiary programme for local poultry farmers to benefit from reduced production costs.

“Currently, the price of leg quarters within the local market is at $360 per pound, while we would be able to import leg quarters at $100 per pound and have consumers paying roughly $160 per pound,” he told Parliament.

JBG’s gross margins have declined from 24 per cent to 20 per cent in its first six months up to October 30, which has been exasperated by a 13 per cent decline in the performance of its Jamaican segment result to $1.53 billion. The group has indicated that higher energy prices and the spike in corn, soybeans and other key commodities are driving up the cost of production. Oil prices hit a record seven-year high last week as West Texas Intermediate (WTI) prices surpassed US$90 ($14,177.70) per barrel.

JBG has produced 13 per cent less birds as its numbers declined from 54.38 million birds in April 2019 to 47.28 million in May 2021. This was contrasted by the rise in the number of eggs produced, which grew by 8 per cent to 31.21 million eggs over the same period.