This was mainly due to the increasing competitiveness of local production, and an increase in the price of imports. The Guyana Stockfeeds Incorporated moved to capitalise on this development in order to pave the way for Guyana to become self-sufficient in poultry meats once more.

To this end, by the end of December last, the company had completed the construction of a massive hatchery project with a capacity to hatch some 52,000 baby chicks per week. By January, hatching had commenced at the facility, located at Guyana Stockfeeds at Farm, East Bank Demerara.

Extension Officer, Mohabeer Sammy Kayana said that the facility is now producing at half its capacity, but it is anticipated that by August, it will be operating at full capacity, offering fully vaccinated baby chicks for sale to farmers.

Despite prevailing economic difficulties, Guyana Stockfeeds Inc. reported making considerable breakthroughs, and recorded an increase in sales from $1.87B in 2001 to $1.98B in 2002 - a growth of six per cent over the previous year.

Presenting his report at the Shareholders’ Annual General Meeting at Hotel Tower yesterday, Chairman of the Board of Directors, Mr. Robert J. Badal asserted: “The prospects for the future of this company have never been better.”

Badal said that even though its gross profit declined somewhat in 2002 - mainly due to external forces, such as the unavoidable (import) grain price increase by more than 30 per cent during the year, the company, out of consideration for the financial status of its customers, refrained from increasing prices which would have offset increased expenses incurred.

Said Mr. Badal: “The company continued its good performance in 2002. Sales increased to $1.98B from $1.87B, the previous year, a growth of six per cent. Gross profit declined from $403M to $390M, mainly due to a reduction in gross margin from 21.5 per cent to 19.6 per cent. This was unavoidable, as grain prices increased by more than 30 per cent during the year, while at the same time, the company was unable to increase prices due to the financial condition of its customers.”

He said that the company also saw its pre-tax profits adjusted downwards from $258M to $123M. Profit after tax moved from $163M to $76M.

But despite these shortfalls, the company had success stories to tell. These include:

** The completion last December of a hatchery with a capacity to produce some 52,000 baby chicks per week;

** An expenditure of some $127M on capital items, the major part of which included work-in-progress on a state-of-the-art Parboiled Rice Plant with a capacity of five million tons of paddy per hour, assuring making for increased sales of US$8M and profits exceeding US$1.2M.

** Secured and expanding markets for export of stockfeeds to Suriname;

** Significant breakthroughs on the local poultry market, seriously challenging imports of frozen chicken

Alluding to the Parboiled Rice Plant, expected to be completed in 2003, Badal said it will ensure significant growth in Guyana Stockfeeds’ export earnings and profitability.

Such developments Badal said, have “delighted the farmers who now view the company more as a partner in the poultry business, rather than a mere feed supplier.”

He said Guyana Stockfeeds, last year maintained its position as local market leader in the feed business and made profitable investments in other sectors, which he anticipates will yield attractive results in the future.

On exports of feeds, he said Guyana Stockfeeds continues to enjoy a steady market in neighbouring Suriname, with appreciable growth in poultry, ducks and dairy feeds.

Urging them to have confidence in the future of the industry Badal assured shareholders: “Your company, with ...extra capacity and its household brand of Kaituk Feeds, is well positioned to capture a greater share of the increased demand.”

The increasing competitiveness of the local poultry industry, and a simultaneous decline in imported chicken are factors which will continue to influence an increased demand for locally produced chicken.