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Food prices soaring

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Expensive taste: farmer Melroy Sutherland, from Jamaica, hard at work planting onions at Farmstead Lane (Photograph by Blaire Simmons)

The cost of groceries continues to rise in Bermuda with some products doubling in price in less than a decade, according to the latest Digest of Statistics.

But farmers and supermarket bosses say the figures are not a fair reflection of the prices paid at the tills and maintain they are subject to a range of global forces outside of their control.

The digest suggests the cost of rice, cooking oil, butter, frozen beans, flour and vegetable soup all nearly doubled between 2005 and 2014, with rice going up from $3.46 to $6.88 and cooking oil increasing from $3.68 to $7.23.

Zach Moniz, manager of the Lindo’s Group of Companies, told The Royal Gazette that the idea of supermarkets driving the price of groceries up was simply wrong.

“The figures in the digest are a little misleading. I have looked back at our price history on some of the items listed and they haven’t changed since 2011,” he said. “The price of flour has not changed since 2012, rice has been the same since 2013.

“Produce and meat are entirely market-driven, so unless whoever did this research is in the supermarket every week they are not getting a true average. Meat price has increased, while bird flu has had a major impact on the cost of eggs, but it is really out of our control.”

According to the Bermuda Government statistics, between 2013 and 2014 sliced peaches, corn niblets, chicken legs, butter and vegetable soup underwent the largest per cent increase in price, with the cost of sliced peaches increasing by 24 per cent.

A loaf of bread increased from $4.74 in 2009 to $5.88 in 2014, while half a gallon of milk increased from $4.79 to $5.30 in the same period.

Mr Moniz said: “We had strawberries in just before Christmas priced at $15.99. The reason was the yield coming out of the fields was terrible and they would have been rotten if we shipped them in.

“We had to make a decision whether to bring them in by air, which sends the price through the roof. But people buy them at that price and if we don’t have them they will go somewhere else.

“The digest prices don’t take into account the many specials on offer. A better way of doing this comparison would be to look at most frequently purchased items and sizes.

“It’s also important to note that nowadays people have less disposable income than 20 years ago to spend on groceries because of cable and mobile phone bills.”

William Cox, president of Miles Market, described the Department of Statistics’ valuation as “narrow”, adding that it did not reflect the broad array of value items that stores try to provide.

“The rice market is a varied market from white rice to brown and speciality rices and as the consumer becomes more health conscious the variety increases, as does pricing variation,” he said. “The same can be said for healthy cooking oils and speciality butters so these statistics need relevance and fair comparatives.

“Our goal has been to remain effective in reducing operating expenses including shipping, electricity and the cost of delivery of service to keep the prices as manageable as possible.

“The food industry is most likely the most competitive from a pricing perspective. Prices are affected by world markets and operating conditions many of which are not controllable.”

The latest digest reveals the price of apples, salt, tomato soup, evaporated cream and eggs went down in price between 2013 and 2014.

It also shows that potatoes have increased from $5.16 in 2005 and $6.33 in 2014 and broccoli has gone up by more than $1 in the same period.

Over the past decade, food, beverage and tobacco imports have steadily risen from $175 million in 2004 to nearly $200 million in 2014, while the value of goods exported has dropped from $25.27 million in 2006 to $11.97 million in 2014.

Although Government announced plans to revitalise the crop and dairy industries in the Throne Speech, farmers maintain concessions are needed to rejuvenate the sector.

Junior Hill, who owns J & J Produce, said there was very little farmers could do to lower prices, but revealed that bad weather and unprecedented crop theft often dented their bottom line.

“We are part of a small scale supply chain that involves a great deal of physical handling and labour cost and in an industry with tremendous unpredictability starting with the imported base price of seed or chilled live plants,” he said.

“In some cases we’ve seen a price doubling year over year for no clear reason even before we begin to actually plant and grow a crop.

“When the price of oil decreases we really don’t feel a benefit that we can pass on to the consumer in terms of our truck and tractor fuel usage.

“We do not get concessions on fuel, electricity, payroll tax, social insurance and health insurance. We must also endure necessary regulation and inspection regimes as dictated by Government. Like it or not this gets passed along to the consumer.

“Any retail price that we set in a small local market like Bermuda is largely taking into account weather effects.

“We occasionally lose entire fields of nearly mature crop after months of work and not always because of obvious weather events like tropical storms. But that’s the nature of farming.”

Tom Wadson told this newspaper he took the latest digest statistics “with a pinch of salt”.

“Agriculture in Bermuda needs a proper succession plan rather than just being mentioned in the Throne Speech now and again,” he said.

“We are fighting against commodities worldwide, while fuel, work permits and health insurance are other factors we have to consider. Our expenses are affected by what happens globally.”

Hitting the wallet: certain items have risen in cost dramatically over the past decade (Graphic by Nikeisha Burrows)
Local produce: farmer Conrad Muir from St Mary’s, Jamaica, pulls a row marker as he prepares to plant onions at Farmstead Lane (Photograph by Blaire Simmons)
Hard at work: farmer Melroy Sutherland from Portland, Jamaica, planting onions at Farmstead Lane (Photograph by Blaire Simmons)