•According to management, hotels have already started to close with many facilities expected to be out of business in the future, affecting its supply chain.
•Farmer's Choice says not only is it unlikely that it will recover all outstanding debts , but those remaining open are demanding hefty discounts.
Pork products dealer– Farmer's Choice has reduced its pig producer prices by five per cent effective Monday, citing low business occasioned by the coronavirus pandemic.
According to management, hotels have already started to close with many facilities expected to be out of business in the future, affecting its supply chain.
The firm says not only is it unlikely that it will recover all outstanding debts from these outlets, but those that are remaining open are demanding hefty discounts if it is to remain their supplier of choice.
“We have been left with no choice but to reduce our pig producer prices by approximately five per cent,” managing director James Taylor said in a notice to pig producers on Friday.
He said the firm will endeavour to continue to take in as many pigs as possible, but it cannot buy to merely hold the carcass in stock in the hope that the market will recover one day.
He said the company is doing everything possible to continue in operation and identify new markets both locally and abroad.
“The above move is deeply regretted but the small comfort is that at this stage we will continue to pay for what we take in on a timely basis. We will do our best to keep you informed of developments both negative and positive as they arise,” Taylor said.
Pig farmers now join a long list of producers, among them flower producers who have beeb hard hit by the coronavirus pandemic, which has cut international market access by more than 50 per cent, leading to massive job losses.
Small and Medium Enterprises in the country have also been heavily affected by the pandemic which has cut them off from their top import market source of China.