March 29, 2007

Pinnacle Feeds to raise prices on increased costs

Pinnacle Feeds, a major supplier of feed products in the Caribbean nation of Barbados, is reviewing its pricing structure due to the high cost of the raw materials corn and soybean in the international market.

The increase, although coming on the heels of a ten percent increase in feed prices in December, was widely expected. However, it has prompted fears in farmers on means to sustain profits as feed prices climb relentlessly.

The feed company said during the December increase it could no longer absorb the increase in the cost of raw materials like corn and soy imported from the US. 

The price of corn increased by fifty-one percent between January and December last year and continues to rise significantly as rising ethanol production drove up prices.

Although the company has made no mention of the size of the increase, industry players expect say a two-percent hike would be considered acceptable at this time.

Pinnacle Feeds was formerly known as Roberts Manufacturing Company and adopted its current name when it merged with Barbados Feed Ltd in November 2000.