The Barbados Chamber of Commerce and Industry said on Thursday it has identified alternative overseas markets that could reduce the consumer price of imported fruits, vegetables and some other foods by at least 25 per cent, if the goods can be shipped directly to Barbados more efficiently.
The proposed reduction forms part of a wider private-sector effort to tackle food costs, improve supply chains and remove unnecessary delays and charges affecting businesses and consumers.
Speaking during a public discussion on affordability and cost-of-living challenges facing the country on Thursday, Barbados Chamber of Commerce and Industry (BCCI) president Paul Inniss said the organisation was pursuing alternative supply sources and more efficient transport arrangements.
“We are working around the clock…we have been engaging with alternate source markets to see how we can find opportunities with, and to our members around alternative sources for goods, Inniss told the forum which included other panelists such as deputy principal of the University of the West Indies at Cave Hill, Professor Winston Moore.
“We know now. The chamber is aware that there are markets that can deliver fruits and vegetables and food to us at reduced source costs. Cheaper source costs does not necessarily mean cheaper food costs, because that food needs to move from where it is to our port; and then that is another transaction.”
“But, we have found alternate source markets. One of the challenges we have is logistics. How do we move those cheaper goods from those alternate source markets? A lot of our food goes through North America and then comes down to us. We met with the Brazilian Ambassador this week; and when they looked at what Brazilian products there are in Barbados and how they have gotten here, that most of it, if not all of it goes to North America and comes down.”
Inniss said the existing arrangement added significantly to costs for the local business sector, underlining the urgency of finding new markets and transport links that could benefit businesses and consumers.
“If we could find a way to move goods from Latam South America directly to Barbados in an efficient wayThe Barbados Chamber of Commerce and Industry held, I think there is an opportunity to bring the cost of fruits and vegetables and some foods down by at least 25 per cent. We know that for a fact. So, that is another area in which the business community is working to improve the cost of goods and services to Barbados.”
Inniss said Barbados could not control global supply-chain disruptions but could use innovation and technology to manage businesses more efficiently and help cut costs.
He said another approach to reducing costs for consumers and businesses was the BCCI’s close working relationship with the Bridgetown Port, the Customs and Excise Department and other stakeholders involved in the ease of doing business, including the banking and energy sectors.
Inniss said the aim was to identify and reduce, or eliminate, unnecessary costs, delays and friction within the business ecosystem.
“We also need to remain open to innovation, and think about how we source, produce and move goods and services in Barbados. None of this can be solved by one institution, or one sector within our economy. We are of the view that business, government, labour and regulators and public agencies, all have a part to play. I would go further to say that each and every Barbadian has a part to play, because we are in this together.”
Professor Moore also addressed the discussion, outlining what the UWI was doing to help reduce the cost of living for consumers.
He said the university was producing specially trained students in areas such as data analytics and software engineering to enter businesses and assist with innovative methods of reducing the cost of doing business.
“One of the simple things that we can do to reduce prices and to reduce the rate of inflation is to look at the biggest component. The largest component that we have is food, and imported food. And the next component is energy.
“If you look at food, the Centre for Agricultural Research and Innovation. What we’re looking at there is how we can put in place innovative solutions to drive agriculture in Barbados. We are also working on the issue of energy prices.”
On outstanding issues such as pre-clearance at the seaport, which could affect prices to consumers, chair of the BCCI’s Customs and Trade Facilitation Committee, Lalu Vashwani, said he would like to see them resolved by October 1.
But Vashwani said there needed to be greater will on the part of all stakeholders involved.
(EJ)
