The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A leading food retailer yesterday reassured Bahamian consumers “there’s no price gouging on eggs” despite prices increasing by “more than 100 percent” over the past two weeks.

Philip Beneby, head of the Retail Grocers Association, told Tribune Business that demand in the US and other countries amid the COVID-19 pandemic is “driving up the cost” of this food staple and prompting numerous complaints from local shoppers.

He revealed he had been in contact with Danny Sumner, the Price Control Commission’s chairman, who had investigated the concerns voiced to the regulator and found no evidence of the alleged “price gouging”.

Mr Sumner could not be contacted for comment by Tribune Business yesterday, with Mr Beneby warning hard-pressed Bahamian consumers - many of whom have lost jobs and/or income amid the pandemic - that “there’s no relief in sight” on egg prices which may well further increase before they decline again.

“I’ve been listening to the chairman of the Price Commission with regard to customer complaints about the price of goods,” he told this newspaper. “Egg prices increase every year, as do lime prices, and the prices have been magnified by what’s going on around the world as shoppers flood to the stores.

“Now, with the sudden increase in prices, people are beginning to scream. The prices on eggs have gone up even more than 100 percent in some cases on a week-and-a-half to two weeks. The demand in the US is driving up the cost of eggs. Egg prices have increased across the US.

“It’s just supply and demand. People are cleaning out the stores in the US of eggs and other necessities, and that’s what’s driving up the price. We don’t produce it here. We’re importers. We used to be an egg producing country, but that has long been out the window,” Mr Beneby lamented.

“I can assure you there’s no price gouging going on. And another thing I can assure you of is that there’s no relief in sight as it relates to egg prices. People are going to see it go up some more before it’s going to fall.”

Mr Beneby said Bahamian retailers are currently paying as much as $142 for a case of eggs. Translating that into consumer prices, he added that they were now as high as $5.91 for a dozen eggs even though the product is on the ‘breadbasket’ list of items that are price-controlled by the Government.

The Association chief, who is also the principal at Carmichael Road-based Courtesy Supermarket, confirmed that retailer are still only permitted a 10 percent mark-up on a case of eggs, meaning that the margin they make on a $142 case is just $14.20.

Tribune Business reported last year that food retailers were seeking “at least” a three-fold increase in that mark-up to around 35-40 percent, arguing that eggs represented a significant ‘loss leader’ for them especially given their fragile nature that resulted in a lot of stock being damaged or spoiled before it reached store shelves.

“There’s no price gouging on eggs,” Mr Beneby reiterated.”There’s complaining about eggs, and in a few short weeks they’ll be complaining about limes. It’s an annual thing, and just a fact of the business.

“The Price Commission only reacted based on the complaints they were getting. I’m sure they investigated them. I spoke to Mr Sumner because he was concerned about the complaints on the eggs. He’s checked, and not found where there’s any price gouging, because he contacted the wholesalers and saw where the prices are.

“There’s no price gouging on eggs. It’s just market prices right now, supply and demand. That’s what it is. We’re just hoping it comes down sooner rather than later, but we have no control over that. We want the prices reduced as well, and can only price the product based on what we pay,” he continued.

“We’re only allowed a 10 percent mark-up on eggs. However, it is what it is. It’s all for the benefit of the customer. We are just sort of subsidising the price of eggs to the public. The public needs it, so it’s a necessity item in the stores. That’s the way it goes. The price of eggs goes with the territory.”

Mr Beneby warned Bahamian consumers that the prices of other foods and grocery items are likely to increase “over the next couple of months” due to demand in producing countries amid the COVID-19 pandemic.

He disclosed that his own store, Courtesy Supermarket, had “seen a jump in sales” of between 10-15 percent due to the virus, adding that it had also increased inventory levels to cope with the increased demand.

Mr Beneby added that consumers had “calmed a bit” from the previous panic-buying frenzy, and revealed that wholesalers were starting to replenish stocks of items that had run out such as hand sanitisers and disinfectant sprays.

“All of our orders have been fulfilled anywhere from 90-100 percent,” he told Tribune Business. “We place the orders we get just about everything. Ninety-five to 100 percent of the products are shipped from the wholesalers, especially the major wholesalers. They’re keeping up.”