Black Immigrant Daily News
Pinnacle Feeds Limited (PFL) has met its threshold and can no longer shoulder the burden and protect its customers from inflation affecting the feed manufacturing sector.
To this end, customers will soon see a hike in feed prices.
From Wednesday, March 15, 2023, PFL will be adjusting the price of its feed products by an average of eight per cent over existing prices. The increase may vary slightly by feed type.
In a press release, Pinnacle Feeds explained that it had been working laboriously in the back to not pass on a price increase to its customers for some time now, but it can’t continue along that vein, especially with Government assistance coming to an end this month.
“Over the past three years while grain prices have doubled, PFL has implemented several initiatives to reduce our internal costs by focusing on plant efficiency and energy conservation. Additionally, we have been procuring grain months in advance when prices are lower, while also exploring sources out of Argentina and Brazil, all in an effort to reduce the impact on our customers.
“With the price support from the Government having ended in February 2023, we are no longer able to absorb the raw material price increases and must adjust our prices if the company is to remain viable and continue to support our local community.”
The feed manufacturer promised customers that it will “continue to closely monitor international grain prices and will continue to support the local community with quality feeds that provide the best value for money.”
PFL last raised prices by eight per cent as well just under a year ago in May 2022. The price of livestock feed went up from May 3.
In a statement, in April 2022, Pinnacle Feeds Limited, the island’s main manufacturer of livestock feeds, announced the rising cost of raw materials, especially soybeans and corn, and the disruptive supply chain caused by the Ukraine-Russia conflicts led to the decision. Additionally, unfavourable weather conditions in South America impacted the volume of grain available, thereby leading to elevated costs internationally.
“We have been shouldering some of the weight of rising input prices, but this price increase is needed as the prices of corn and soybeans continue to increase significantly on the world market,” Pinnacle Feeds stated at the time.