Pres Ali announces new purchasing system to lower meat, egg prices

President Dr Mohamed Irfaan Ali has announced plans to establish a coordinated purchasing system for eggs, chicken, beef and mutton. The system aims to reduce food prices for Guyanese consumers while ensuring farmers receive fair and predictable returns.

During a meeting on Friday morning with producers, distributors, retailers and suppliers at State House in Georgetown, the president outlined a comprehensive strategy to address rising food costs by eliminating inefficiencies in purchasing, transportation, storage and distribution, while simultaneously expanding domestic agricultural production.

He emphasised that reducing food prices must not come at the expense of local farmers.

“Cheaper food must not come from squeezing the farmer. It must come from taking unnecessary costs out of the system and producing more,” the president stated.

Government to consolidate purchasing

Under the proposed system, the government will consolidate demand from schools, hospitals and other public institutions, creating larger and more predictable orders for agricultural producers. Wholesalers and retailers will also be allowed to participate voluntarily.

According to the president, the current fragmented purchasing system creates uncertainty for farmers and buyers, resulting in higher financing, storage and transportation costs that are ultimately passed on to consumers.

The new arrangement will establish clearer purchasing volumes, quality standards and delivery schedules, allowing producers to plan more effectively while reducing unnecessary costs. The president made it clear that the initiative does not represent a government takeover of farms or retail businesses.

Farmers will remain free to sell outside the programme, while retailers can continue purchasing through their existing channels.

Retailers must pass savings to consumers

A key feature of the initiative will be measures to ensure consumers directly benefit from lower wholesale prices. Retailers participating in the programme will be required to adhere to transparent maximum mark-ups, clearly display programme prices and report quantities sold.

The government will also introduce a regularly published price dashboard showing wholesale prices, retail prices and the savings delivered to consumers in each region. The system will be judged primarily by its impact on household food bills.

Fair prices and prompt payments for farmers

President Ali also announced safeguards to protect farmers from unfair pricing and procurement practices.

He noted that contracts will not be awarded solely on the lowest price offered. Instead, consideration will be given to verified and efficient production costs, product quality and reliable delivery.

Where appropriate, multi-cycle purchasing commitments will be introduced to provide farmers with greater certainty when investing in production. Small farmers will be able to participate individually or through cooperatives and producer groups.

The president further committed to transparent contract awards, independent audits and firm payment deadlines to prevent farmers from facing lengthy delays after supplying their products.

Expanding local production

Beyond purchasing reform, the government intends to increase the domestic supply of eggs, chicken, beef and mutton. Dr Ali said poultry and egg production could expand within months with appropriate support, while beef and mutton production would require longer-term investment.

The government will work with producers to develop commodity-specific production agreements, outlining realistic output targets and the financing, land, feed, veterinary and infrastructure requirements needed to achieve them.

The strategy also includes increasing local animal-feed production to reduce exposure to imported maize and soybean costs, expanding veterinary and agricultural extension services, and improving access to affordable financing.

Investments in breeding, pasture development, drainage, cold storage, slaughtering facilities, transportation and food-safety systems are also envisaged. These interventions are intended not only to improve domestic food security but also to position Guyanese producers to access larger regional markets.

Safeguards against monopolies, unfair imports

The president stressed that the coordinated purchasing system must not become an arrangement dominated by a single buyer, processor or small group of suppliers. Multiple producers and processors will be eligible to participate, while competition authorities will monitor collusion, unfair exclusion and excessive mark-ups.

He also assured farmers that imports would not be used indiscriminately to undermine local production. Where temporary shortages occur, import decisions will be guided by published assessments of domestic production, available inventories and expected demand.

Such imports, he explained, would serve only as a temporary measure while local production expands.

The initiative will bring together producers, processors, retailers, financial institutions, transporters and consumer representatives, with each group expected to contribute to its implementation.

President Ali said the government will assess the programme based on production increases, waste reductions, improvements in payment timelines for farmers and, most importantly, the prices consumers pay for essential protein products.

“This is not a plan that asks us to choose between farmers and consumers,” he declared. “Our farmers need fair and predictable returns. Our families need affordable food.”

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