ground-provisons1We have to admit that we came up empty when we tried to do a follow-up on a previous Foreign Eggs Are Coming! which we posted leading up to the Christmas period. From all the feedback received there was no significant downward movement in the price of eggs. It is regrettable that our local media has not done a follow-up story by asking what, why, who, when and where. Maybe we are being harsh on them, they seem to have their hands full trying to defend why journalists in Barbados should not pay professional fees.

In all fairness the local media has kept the issue of high food cost in Barbados as a centre issue. On a related note the Trinidad media has been reporting this week that there is overwhelming evidence the price to the consumer of imported food is starting to trend downwards. The main reason given is the depressed oil price which has impacted freight cost.

The information coming out of Trinidad requires that some explanation from Barbados merchants is required. The immediate would be to question the sourcing of suppliers used by Barbados merchants  vis-à-vis those in Trinidad.

Our merchants in Barbados have held the position that the sliding oil price as a single variable is not the only factor to influence a drop in food price. We accept that there is merit in that argument to a point. Prime Minister David Thompson has been very vocal regarding the haste with which local merchants have increased the price of food to consumers when oil price was moving upward, merchants have been reluctant however to do the same as the oil price decreased. The debate about the genuineness of the merchant’s argument is a continuing one.

We believe that in the absence of a consumerist climate in Barbados, the passive stance of the local media, an irrelevant strategy from the unions and successive governments who have pandered to the merchant class over the years, we have seen a merchant class given license to fix price based on generating the widest profit. In recent days we have listened to the Director of Commerce suggesting their intention to restart the process of publicly listing the price of a basket of food items across the retail sector. We have to comment that the lack of a consistent advocacy on the part of our department of commerce has failed the PEOPLE.

A simple test which our department of commerce and by extension our government can perform is with the ground provision product. Several plantations in Barbados currently cultivate sweet potatoes and yams. It is our information that a rod can be dug from the ground for at the most $15.00 to $20.00. By our generous estimate a rod is 3- to 40 pounds. Next time a BU family members go to the supermarket they can do a simple test by checking the cost of one pound of yam or sweet potato which is estimated at $3.00 to $4.00 versus the cost of $15.00 to $20.00 per rod. We find it amazing that on a 166 square mile island we should be encountering such a massive disparity in price from source to consumer if we factor freight as a major input to final price. Who should we blame? Is it the middleman? Is it the supermarket? Or is it the cartel behaviour of price fixing which seems to have become institutionalized in Barbados?

It is our deep sense that the government needs to send a strong signal to the merchant class that it means business, the PEOPLE are suffering. On the flip side we understand that to fight with our elite merchant class is fraught with some risk. Where are their loyalties? If pressured to reduce margins and or break-up current practice will they undermine the economy by engineering flight of capital?

It has happened before.

  1. INDENTURED SERVANTS AND SLAVES Avatar
    INDENTURED SERVANTS AND SLAVES

    But BU ~ after much hoop-la, I still have not been able to learn IF the shipment of foreign eggs ever reached here, WHO imported them, to WHOM were they sold and HOW were they marketed? I visit several independent supermarkets and have not seen a single ‘foreign’ eggs identified as such.

    Did these foreign eggs go to consumers in the regular Bajan Made egg boxes?

    Surely you can find out and let us know.

    Thanks


  2. Excellent article BU. No wonder BFP, the elites, the colourless, and the remnants and offspring of the planter/merchant class would want to destablize any medium by which ordinary Barbadians can be informed, and can unite in a common cause.
    Your are asking the right questions. Such focus will at some point lead to more people asking themselves what can we do about it. At this time many of us will have ready solutions that will benefit most.

  3. Donald Duck, Esq Avatar

    BU where is your commentary on the PM’s speech to the chamber of commerce??????


  4. I too would like to get some knowledge about the imported eggs.This CAN be a project for the BAJ/media to do some investigative journalism. I look forward to seeing the media doing some work on behalf of the public and thus improving their image among us.


  5. Break up this monopoly! Bottom line!

  6. Carson C. Cadogan Avatar
    Carson C. Cadogan

    Tarring and feathering our merchants is long overdue. They are the most dishonest bunch of people in Barbados. The sad thing about it is the fact that they get away with their dishonesty every time under whatever guise they assume.

    Vat was supposed to reduce the cost of living significantly, what the disgusting Barbados Private Sector did in the run up to it’s implementation was to relentlessly increase prices before it was introduced. As a result by the time vat was introduced prices in Barbados were higher than ever. Even the Nation Newspaper took the opportunity to jack up the newspaper’s price.

    Of recent vintage they screamed that increased oil prices would force them to increase prices which they did. There has been several decreases in the price of fuel which were passed along by the Govt. However only microsopic reductions in prices have been made on a few mealy items. The vast majority of sky high prices remain.

    I maitain that the reason for all of this is the fact that the majority of consumers in Barbados are black and the Barbados Private Sector is largely White dominated and they do not give a damn about us. If the majority of consumers were white we would not have to battle this price gouging which is rampant in Barbados.

    Last Friday I went into a Supermarket to purchase a bottle of Vegetable Oil, on the the bottle the price was $14.69 by the time cashier was ringing it in $15.25 showed up on the computer screen. Thes merchants are robbing Black Consumers one way or the other. Then they have the unmitigated gall to talk about “High Import Duties”.


  7. I think you guys should get Rok & Juris to do some research on this issue

  8. Knight of the Long Knives Avatar
    Knight of the Long Knives

    I suppose I shouldn’t tell you then that overseas prices of soya bean oil based oils and shortenings have dropped by a 33%. A few months ago soya was at a 12 month low while Roberts has almost doubled prices in 2 years and has no intention on bringing them back down. Further government continues to protect them and ADM Barbados Mills with 40 % duty on oils 60% duty on shortening and 60% duty on flour from extra regional sources, and god help you if you bring them from T’dad or Guyana and don’t have a godfather or pay off somebody cause customs valuation department will stick in ya teet.

  9. Knight of the Long Knives Avatar
    Knight of the Long Knives

    I happen to be sitting on a price list from a big American distributor who sells to distributors here, which I got in May when prices were sky high. It is scary the markups some of these companies make. I will post more details, including prices when I have some time.

  10. Knight of the Long Knives Avatar
    Knight of the Long Knives

    Just for the record…
    12 48 OZ MAZOLA VEGETABLE OIL $47.91.

    that’s 3.99 USD for 48oz of oil. This does not include volume discounts that a distributor would receive.

    12 26 OZ RAGU SPAG SAUCE W/MSH $22.46

    $1.87 for a bottle of Ragu spaghetti sauce. + 20% duty.


  11. The merchant class cannot survive for long, if every customers, who barely have to cents to rub together, decide to do their shopping at the corner shop.

    Let them keep their fancy supermarkets and stores filled with imported junk, for the few that will not bother to search for a missing $5 note.

    If you have to shop at them, buy only what you want and do not allow their pretty advertisements and competitions to influence your eating and spending habits.
    Remember cheaper does not necessarily mean inferior. Try the cheaper brands at least once.

    Consumers have to deliberately decide where they will spend their two cents.
    Stop waiting for a knight in shining armour .


  12. Amen GL!. At any rate a lot of the things available in supermarkets today are not good for you. Why are people in this day and age still using Vegetable oil for is amazing to me.


  13. The reason we selected yams or sweet potatoes is because we know the price to dig a rod and the key inputs from ground to supermarket is freight and packing.

    This has nothing to do with the price of corn or soya. Who is responsible for the profit margin given the short supply chain?

  14. Knight of the Long Knives Avatar
    Knight of the Long Knives

    David if you want you can suggest a few things I will check my prices list and the tariff book and give you what they would land at in Barbados. The last time I checked, items in a dry container (from Palm Beach) landed @ about 2.4 times the US price then you add duty. I am about to cost a dry container for someone so I will let you know if the multiplier has changed.

  15. Knight of the Long Knives Avatar
    Knight of the Long Knives

    and btw we all know that there are two or three big companies in Barbados that control the food business from distribution to retail. Unfortunately they were able to squeeze Neville Rowe out of the business as he was genuinely trying to make a difference (and getting rich in the process).
    I heard recently that a guy brought 16 containers of flour out of guyana and customs has them held up.
    Flour in Trinidad is a third of the price of Barbados no good reason why. Then they pay off poor people (customs officers) to harass people who are trying to bring down the cost of these things


  16. Carson C,
    I hope you paid the price that was displayed on the item as opposed to what was transpiring at the ‘check-out’.
    Hope you didn’t settle for the latter. No way.
    You’re smarter than that.


  17. @Knights of the Long Knifes

    Here are three products you can check:

    Anchor Cheese (2kg) – $42.00

    Corn Beef (Hereford) – $3.49

    English Potatoes – $1.25lb

    We consider these staples for the average family with 2-3 children. Would be interested to learn the landed price.


  18. Even vehicle prices are rediculous. A Toyota Yaris in USA really fully loaded is U.S $ 14,000.00. In Barbados a Toyota Yaris which meets no special standards and not as fully loaded as the USA one is approx Bds $ 55,000.00. Somehow we’re being ripped off. One time the then P.M Mr Barrow, instructed the garages to displace a print out on every vehicle for sale. The prices were reduced drastically.

  19. Knight of the Long Knives Avatar
    Knight of the Long Knives

    I accidentally received the customs paperwork on a new vehicle I purchased in 2004. They made $17,000 of a $64,000 (including VAT) car including. It was not a car that flies off the shelf so I am led to believe they usually make more per vehicle.

  20. Carson C. Cadogan Avatar
    Carson C. Cadogan

    The Democratic Labour Party Govt. needs to act decisively with the Barbados Private Sector. They are taking advantage of Black Consumers in this country Barbados.

    One of the reasons we voted into office the DLP is the fact that we were fed up with the sky high prices in this country. We were hoping, as a matter of fact we are still hoping, for relief from the choke hold these bastards in the Barbados Private Sector have Barbados in, especially Black Consumers.

    After a year in office we are no better off with regards to prices. All we are getting from the Govt. is one lame foot excuse after another. The DLP Govt. needs to lead, the people are suffering.

    The Govt. must do something about these sky high prices in Barbados. Even tourists ask me, with monotonous regularity, how do local people cope with the crushing prices of everything here in Barbados.

    I was once in a conversation with a Manager of the Exim Bank in Trinidad and he was astonished at the prices here in Barbados of Trinidad products. He told me that many in the Barbados Private Sector borrow money from his bank to make purchases of Trinidad products and he knows for a fact that they are sold to them at extremely reasonable rates, then to see them on Barbadian shelves at such absurd prices is sickening.

    David Thompson year one has come and gone, year two is ahead, do something!

  21. Knight of the Long Knives Avatar
    Knight of the Long Knives

    Remember too that the garage get’s dealer prices for a 14k vehicles its proabably 7-9 thousand dollars. If I remember correctly the declared value of the car I purchased was 9 thousand dollars and it was loaded to the max. More loaded than any car in its class at the time. Auto wipers , auto lights, dual airbags, abs etc…

  22. Knight of the Long Knives Avatar
    Knight of the Long Knives

    I have whole white potatoes at 43 cent per pound U.S and these are probably a higher grade than what is currently available here and once again this is without a bulk discount that is once case of 27 pound potatoes. I unfortunately did not enquire about the bulk discount as there was nothing I was interested in.

  23. Knight of the Long Knives Avatar
    Knight of the Long Knives

    ***above should read one case of 27lb.

  24. Knight of the Long Knives Avatar
    Knight of the Long Knives

    In fairness to the garages the government made $27,000 on the same car.

  25. Knight of the Long Knives Avatar
    Knight of the Long Knives

    @David I don’t see Hereford brand but I see Hytop corned beef hash 15oz @USD1.12 per with the purchase of one case, add 5% duty.


  26. What about the practice by supermarkets to slice the vegetables and package them cheaply e.g carrots, beets


  27. Carson, while acknowledging that the majority of the consumers in Barbados are black, how is it possible that you turn high food prices into a black-white issue? Do white Bajan consumers pay less at the supermarket check-out? Who owns the majority of the supermarkets in Barbados? Not the BS&T anymore. Blame Neal & Massey of T&T.

    Who owns Carlton & A1 Supermarkets? Jordan’s? Black people! Who controls and sets the prices but the Fair Trading Commission [Gov’t]? Who is addicted to import duties? Who levies duties on CIF [cost INCLUDING FREIGHT] on all items coming into Barbados? Ya t’ink is BS&T? WRONG! It’s your own and my own Government. I recently imported some items from Florida and I had to pay duty and “environmental levy” of 3% on not only the cost of the items but also the air freight to fly them here. DUTY ON AIR FREIGHT? Not to mention VAT on air freight charges. Get a freaking grip! What has the GOB done to justify charging VAT on air freight? But that’s what your and my Customs and Excise Dept levies for your government. And don’t even mention vehicles as KOTLK has shown!

    Sorry Carson, every merchant who imports anything into Barbados, and every consumer, black and white, local and foreign, is treated equally by, and is at the mercy of, a government which is like every government in the world: addicted to taxes and revenues. At least the GOB is transparent in the way in which they collect taxes and duties, unlike Canada, which levies taxes on top of taxes, and it all goes into the the great sucking maw of what is known as “general revenues.”


  28. David
    What about WIBISCO lowering the price of their biscuits and making the packaging smaller?

  29. Get in the Action Avatar
    Get in the Action

    You said it Diaspora-ite. The retailers are easy fodder for this crew. They conveniently disregard the ridiculously high taxes loaded on every item coming into Barbados. All to support a bloated and inefficient Government bureacracy. Take a $55K car that a dealer may make $6 – $7k on, the GOB takes home 2-3 times that in Vat, taxes and duties.


  30. David,
    Since the merchants are now claiming that fuel cost is not a significant factor in retail prices, we have to look elsewhere to determine the origin of current supermarket prices.

    Like you I am interested in the import duties, fees, vat etc. charged on the basic items and foodstuff sold in the supermarkets.

    Why is it that persons know the charges on vehicles imported into the island and the charges on foodstuff and other basic consumer items are a national secret?

    If the GOB is the culprit, then what is preventing the merchants from saying and showing that this is the case?

  31. Carson C. Cadogan Avatar
    Carson C. Cadogan

    “Since the merchants are now claiming that fuel cost is not a significant factor in retail prices, we have to look elsewhere”

    Are Bajans really this backwards? When the fuel cost started to raise the Barbados Private Sector said in no uncertain terms that as a result of increasing fuel costs they will have to raise prices and they did. This hogwash was broadcasted on CBC tv, CBC radio, Starcom network, the Nation newspaper, and the Advocate.

    It boggles my mind that some Bajans will now accept their lame foot excuse that “fuel cost is not a significcant factor in prices”.

    When it suits the Barbados Private Sector, fuel costs significantly effects prices, and when it suits the Barbados Private Sector fuel cost “does not significantly effect prices.”

    These people in the Barbados Private Sector really take us for Jackasses. They think because we are black we are also stupid.


  32. We are talking about food. It is known that the government levies taxes to generate revenue and dampen demand for vehicles.

    Secondly, the opposition has been very vocal about the high cost of diesel and impact on production of goods. While we understand imported inflation how does it affect digging yams and potatoes?


  33. We will have to change the Law to address the question of duties and vat on freight.

    But what about LAND TAX ? Is it justified ? I have been puzzled by this for a long time now.


  34. The call for subsidies on diesel has more to do with private citizens and their diesel powered vehicles than anything else.
    The system of subsidizing diesel across the board was abused, as people who were not involved in the productive sectors were allowed to benefit.

    After the last major power outage I heard on the news that some supermarkets refused to start their generators because diesel is too expensive 🙂


  35. General Lee, perhaps what is required here in Barbados is a “truth in advertising” act.

    One example: a supermarket at Six Roads sells local paw-paws for $10.95/kg. A farmer’s market in St. John, about 9 km from Emerald City sells the same type of paw-paws for the equivalent of $4.62 per kilo. Same with vegetables and ground provisions including my favourites eddoes, prices less than half of what they are at Six Roads. The difference can NOT be accounted for by transportation costs. Who’s gouging who?


  36. […] month we posted the blog Should Our Merchants Be Tarred And Feathered? which attracted moderate comments from the BU family. Maybe a reflection of how accommodating […]


  37. do you think it is possible to import household items into Barbados and resell them at an inexpensive price? Or is it unrealistic to think that way.

The blogmaster invites you to join the discussion.

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