The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Leading wholesaler Heath Pritchard has warned consumers can expect a very expensive Christmas with wholesale prices continually rising, something he expects to carry on into 2022.

Mr Pritchard, vice president of Asa H Pritchard, told Tribune Business: “For example, we have seen frying oil, one of the most imported item in this country due to all of the fried chicken outlets we have, about five months ago the price of oil doubled.

“A 35 pound Jib (jug in box) of frying oil was $26, but I think the going rate is now $58. Remember, so many products are oil based so when the price of oil goes up everything goes up.”

Prices are also rising, he said, due to a “labour shortage” in the United States, particularly with meat processors and butchers.

“There just aren’t enough butchers back to work yet, so it’s hard to find choice cut meats anymore because there is no one to process all of this protein,” he said

“The price of cheese is up, the price of UHT (ultra high temperature) milk is up. Price of proteins is up. So we’re definitely seeing increases, it doesn’t come across every single category, but then you also have the problem with being able to procure items.”

He explained he is experiencing the same challenges building materials suppliers and other import reliant companies are facing with the lack of shipping containers coming out of China in addition to their elevated cost.

Mr Pritchard said that the cost of container being shipped out of China went from $4,000 to $17,500 in a little over a year. “China is holding on to all of these containers, so there is a massive world wide container shortage.

“So to bring product from the US hasn’t changed in price much, but you have to remember is that when you have this flow of sailings happening containers are just circulating through the world.

“Well now everything that comes to China they are just holding them and having people pay them for them.”

Between logistics issues with shipping containers tied to China, the lack of meat processors in the US and the price of oils having an impact on everything else, Bahamians can expect an expensive Christmas and New Year if the trend continues, says Mr Pritchard. “I can definitely see this going well into the New Year.”

Justin Higgs, marketing manager for Bahamas Wholesale Agencies (BWA) agreed with the lack of shipping containers having an impact on prices and added, “The price increase varies by item. If we have things coming directly from Florida we aren’t see anything substantial, but anything coming from further north, the freight costs are continuing to go up.

“Inflation is a big issue, the cost of shipping has definitely gone up and it all depends on where wholesalers are getting their stuff from. If they are ordering goods all the way from Europe then of course things are going to be a bit more expensive.”

Mr Higgs also said: “The cost of raw materials is also playing a significant role in price increases, especially at the factory level and the cost that they sell to us.

“The price increases are impacting us straight across the board and there just isn’t one item or group of items that’s being impacted. The cost of raw materials is going up along with the cost of freight, so I don’t see any discrepancy between those two in terms of costs going up.”

Refusing to predict how prices will look by the end of the year, Mr Higgs said that what BWA’s vendors charges them is what will determine prices and right now they are just sitting back patiently waiting for things in the market to settle down past this COVID-19 pandemic.