By Suresh Perera
The government has decided to import 2,000 metric tons of chicken from Brazil, notwithstanding vehement protests from key industry players who have warned of a detrimental impact on the local trade and the threat of the highly pathogenic bird flu.
A dearth of chicken has sent prices zooming, with a kilo fetching 450 to 500 rupees in the open market as the local poultry industry struggled to normalize supplies disrupted by escalating production costs coupled with import restrictions on maize.
"Importing chicken at this juncture will be disastrous as a glut is anticipated by early August with the industry stepping up production to meet the shortage", says Dr. D. D. Wanasinghe, Chairman, All Island Poultry Association.
It would take at least four weeks to take delivery of the consignment of chicken the Marketing Development, Co-operatives and Consumer Services Ministry is contemplating to import from Brazil, he pointed out. "And by that time, there will be a surplus of the produce in the local market".
"This could push the local poultry industry down the precipice", Dr. Wanasinghe cautioned. "Imports are not the solution to the problem".
"We have decided on imports as a temporary measure to meet the prevailing shortage", a senior Ministry official said. "It will not be done as a practice as the government is committed to safeguarding the interests of local farmers plus consumers".
"When there is no chicken available in the market, we have to take action to rectify the situation as consumers suffer", he pointed out. "That’s why we are pushing ahead with moves to temporarily import stocks".
Asked whether imports at this point could lead to a surplus in the market, the official said the monthly demand for chicken is in the range of 11,000 metric tons, whereas local production is around 8,000 metric tons.
He said that the imports will be handled by the CWE to ensure transparency. "There will be no private parties involved".
Dr. Wanasinghe said the shortage of chicken has eased to a great extent, and it will be possible to restore market normalcy by end June. "This shows there is no need for imported stocks".
Why not? There is no chicken in the market and prices have shot up because of the shortage, the official interjected. "While protecting local farmers, we also have a duty to look after consumer interests".
Even if the Ministry went ahead with imports, is there a storage facility to hold 2,000 metric tons under the correct temperature?", Dr. Wanasinghe asked. "A competitive pricing structure will also have to be worked out for these stocks to be brought down from far-away Brazil".
"We have sufficient cold rooms for storage – that’s not an issue", the official assured. "On pricing, the imported stocks will be sold at the controlled price of 350 rupees per kilo".
"As there is mass production in Brazil, we can procure at competitive prices, but we will not sell below the controlled rate as it will be unfair by local producers", he said.
Sri Lanka has remained free of the deadly Avian Influenza, which hit even neighbouring India, due to the rigid ban on imported poultry products, the Poultry Association chief noted. "We must continue to exercise caution to keep this threat at bay".
"That’s why we are importing from Brazil which was one of the countries unaffected by bird flu", the official explained. "We are conscious of the looming threat".
Dr. Wanasinghe has written to Minister Johnston Fernando expressing his Association’s concerns on the move to resort to imports at a critical time the industry is struggling to recover. "There are one million self-employed people dependent on this industry".
"The job security of these people and the protection of the local poultry industry are our top priorities", the official said. "We have decided to import to meet the shortfall in local production – it is just a temporary measure".
Asked why chicken prices still remained high if there was no dearth as claimed, Dr. Wanasinghe said processed whole chicken with skin in branded bags have to be sold at the controlled price of 350 rupees per kilo, but the unregulated live market maintains a hefty profit.
"Live birds sold by producers at 280 rupees per kilo are, in turn, ‘cleaned’ and sold at prices ranging from 450 to 500 rupees per kilo", he noted. "It’s not the producer who benefits by this".
source - www.sundayisland.lk
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