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Retailers Mark Up Chicken Prices by 12 Per Cent

by 5m Editor
11 May 2010, at 7:30am

FIJI - The mark-up charged on chicken by supermarkets and other retailers continues to be under price control set at 12 per cent over factory prices.

Both the Ministry of Trade and the Prices and Incomes Board have confirmed that a 12 per cent maximum mark-up remains in force for all retailers, according to Fiji Times Online.

This follows last week's announcement of the staggered removal of wholesale price control on chicken - part of an agreement between the poultry industry and the government.

As part of the nine-month agreement, factories will eventually be able to charge 11 per cent more for wholesale chicken.

Wholesale chicken prices will rise by 5 per cent on 17 May, followed by a 2 per cent increase three months later, another 2 per cent rise six months later and a final 2 per cent at nine months.

PIB deputy secretary Lusi Naimawi stressed that the mark-up for retailers would continue to be 12 per cent on all local chicken products, be it whole birds or chicken pieces.

This after examples were highlighted where some supermarkets were charging significantly more than factory prices for chicken products.

For example, the ex-factory VAT inclusive price of chicken breast according to PIB figures is $7.03 a kilogram.

However, one supermarket last week was retailing the product for $9.39 a kg a figure that's 33.5 per cent higher than factory price.

Ms Naimawi said PIB would look into the issue. Restaurant owners and fastfood outlets are now contemplating raising the price of chicken dishes.

Crest Chicken general manager Shaun Joils said consumers were also welcome to buy chicken at the factory at wholesale prices, negating the need to foot any retail markup.