by RICKY JORDAN

A CALL HAS BEEN MADE for Government to look into business monopolies based here, as a result of the hike in flour prices by the island's lone milling company.

Businessman Trevor "Job" Clarke said on Saturday there were monopolies by foreign companies in the airlines, telecommunications and flour industries, all charging high prices in the Caribbean.

"The airlines charge high prices in the Caribbean, but low fares in Europe. It's the same thing with Cable & Wireless, whose biggest profits are from the Caribbean region. So Government needs to examine its position with these global enterprises, including Archer Daniels Midland (ADM), that have monopolies in the region," Clarke told the DAILY NATION.

ADM owns 90 per cent of the Spring Garden-based Barbados Mills, with Government being the other shareholder.

Clarke, a black business advocate and owner of Winifred Trophies, said it was incumbent upon Government to work with the business sector to examine these monopolies since they were causing the costs of living to be exorbitant.

Clarke also queried if, according to the bakeries, flour constitutes 80 per cent of their product, "then for every bread costing one dollar, for example, the cost of flour in that bread should be 80 cents.

"So if a 45kg bag of flour is now going to cost bakeries about $80, then each bag should be able to provide 100 rolls of bread.

True picture

"What I'm asking the bakeries is how many rolls can you get from each 45kg bag of flour," he added, noting that figure would give
a true picture of what flour costs should be.

The cost of flour will go up by 25 per cent from today, and hikes are also due in Jamaica (by 30 per cent), as well as in Grenada (by 20 per cent).

ADM also owns milling companies in these countries.

A Press release from the Kingston-based Caribbean Millers' Association blamed the price trend on a bout of bad weather – drought, freezes and floods – that has decimated wheat crops in North America and created worldwide shortages, as well as the fact that many farmers had switched production to corn to capitalise on the growing demand for ethanol.

Besides the flour industry, however, animal feed producers say they are also feeling the pinch of rising grain prices worldwide, and may have to join Barbados Mills in raising prices by year end.

According to general manager Michael Clarke of Pinnacle Feeds, hikes in world grain prices would definitely affect producers of animal feeds and cooking oil.

Pinnacle, which extracts meal and oil from imported soyabeans, said they had grain prices "under constant review" and would probably have to raise their "prices before the end of this year".
(RJ)