President Dr Irfaan Ali on Friday announced plans for a coordinated purchasing system aimed at reducing the prices consumers pay for eggs, chicken, beef and mutton, while ensuring farmers receive fair returns.
In a November 13 statement, the President said the pilot programme will pool demand from public institutions and allow interested wholesalers and retailers to participate. Larger, more predictable orders are expected to reduce production and distribution costs, limit wastage and give farmers greater certainty about their markets.
“Our approach will be based on a simple principle: cheaper food must not come from squeezing the farmer. It must come from taking unnecessary costs out of the system and producing more,” Ali said.
He explained that separate purchasing arrangements by schools, hospitals, retailers and other buyers contribute to uncertainty over quantities, availability and prices. This, he said, raises financing, storage and transportation costs, which are ultimately passed on to consumers.
Under the proposed system, demand will be consolidated and published in advance, allowing farmers, cooperatives, processors and consortiums to plan for the quantities required, delivery periods and quality standards.
Participation will be voluntary, with producers free to sell outside the programme and retailers able to continue purchasing through their usual channels.
However, businesses joining the initiative will be required to pass negotiated savings on to consumers. Participating retailers will agree to maximum mark-ups, clearly display programme prices and report the quantities sold.
“But we are going to publish all those who will be part of this system and the maximum retail price that we all agree on so that consumers know where to find you,” the President said.
A regular public dashboard will show farmgate, wholesale and retail prices, allowing consumers to track prices and assess whether savings are reaching households across the regions.
Ali said bulk purchasing could also secure better prices for feed, veterinary supplies, chicks, breeding stock, packaging, refrigeration and transportation. Improved coordination is expected to reduce spoilage and the number of empty trucks travelling across the country.
For farmers, contracts will take account of verified, efficient production costs, quality and reliable delivery, rather than simply going to the supplier offering the lowest price on a particular day.
Where appropriate, purchase commitments covering multiple production cycles will be considered to encourage expansion and help producers manage changes in input costs.
The President also pledged firm payment deadlines, noting that delayed payments force farmers to borrow at higher costs.
“A farmer should not deliver eggs, meat or poultry and then wait months to be paid,” he said.
Ali disclosed that discussions are underway with banks on establishing a 30-day line of credit at four per cent, compared with rates he said currently range from six to nine per cent.
Alongside the purchasing arrangements, the Government will work with producers on separate production agreements for each commodity, setting output targets and identifying the financing, land, feed, veterinary services and infrastructure needed to meet them.
While egg and chicken production can expand relatively quickly with adequate support, Ali acknowledged that beef and mutton require longer-term investment in breeding, pasture, drainage, animal health, finishing systems, slaughtering facilities and cold storage.
He said the Government will support feed production and improve access to affordable financing for poultry houses, pens, pasture development, refrigeration, processing and delivery vehicles. Traceability and food safety systems will also be strengthened to support local consumers and access to regional markets.
The President stressed that the purchasing platform must remain open to multiple producers and processors.
