Susan Gordon, Business Reporter

Christopher Levy, senior vice-president, Jamaica Broilers, secured agreement on Thursday in Paris for US$1.45 million of compensation for breached contract.

Jamaica's main poultry producer, Jamaica Broilers, warned yesterday of a likely spike in the price of chicken meat and feeds in the face of recent storms in the US Gulf region that have upshot the industry's supply chain.

"You are looking at about 25 to 30 per cent increase in our corn and soya prices," Christopher Levy, senior vice-president for operations at Jamaica Broilers, told Wednesday Business.

He could not immediately say how that would translate into the domestic price for feeds or chicken meat.

Increase

An increase at this time, however, would be only weeks after a two per cent downward adjustment in poultry meat prices by Jamaica Broilers to reflect a fall back in grain prices on the global market.

However, Levy said recent storms in the Gulf, including Gustav three weeks ago and Ike last week had disrupted his company's supply chain from the Mississippi region, forcing a re-routing. The upshot: higher transportation costs.

On a regular basis, JB ships 12,000 tonnes of corn per month and combined with soya and other ingredients ships a total of 20,000 tonnes over the same period.

"We are in discussion now on whether we move our poultry prices or not," Levy said.

Jamaicans pay, on average, $123.00 and up per pound for chicken meat.

susan.gordon@gleanerjm.com