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Chicken processing plant a viable option for Gov’t

- Talk show hosts laments lack of foresight by Gov’ts to use the plant since 2005
The hosts of the show lamented that Government has not already seen the wisdom in investing in the plant, which has been in existence since 2005. Photo: B J Review
ROAD TOWN, Tortola, VI- Hosts of the radio show Umoja, Cromwell Smith, Natalio Wheatley and Khoy Smith are of the view that investing in the existing chicken processing plant in the Virgin Islands could be a very feasible one for Government as it would ensure that other businesses are created around it and that less money leaves the country as the importation of chicken would be minimised.

In fact the hosts of the show, which was broadcast on November 17, 2011, lamented that Government has not already seen the wisdom in investing in the plant, which has been in existence since 2005.

Mr. Cromwell Smith noted that the Territory imports around 8 million dollars’ worth of chicken a year and that any intelligent government would have seen the wisdom in keeping at least half of the money in the Territory as it would have a major impact on the economy. He further said a plant that has the capacity to process some 4000 chickens in eight hours would mean employment for persons. Furthermore, he said that business would be created as there would be the need for several hundred chicken coops to adequately feed the processor. Other possible businesses highlighted were the selling of chicken feeds and manure, selling of eggs and its distribution, transportation, packaging and marketing.

The topic came up for discussion after a caller to the show said Mr. Khoy Smith produces some of the best chickens in the Territory but for months now he (caller) has not been able to get any.

Mr. Khoy Smith, who is the President of Farmers on the Move, explained that the entity was looking to work along with government for assistance for farmers to start up their chicken coop business. “I am hoping that with this new administration the support would be there so that we can take production to the next level.”

Mr. Smith also explained that the Farmers on the Move’s idea for the processing plant was for it to be a pilot project to sensitize people about the potential in the agriculture sector that could be capitalized on. “If government would have grabbed it and run with it in 2005 we would have seen perhaps by now where it would have turned over to an industry by itself that would have been able to not just feed the nation but export to St. Thomas as well.”

Mr. Wheatley then noted that one of the areas where they know money is quickly leaving the economy is through the importation of food and that if the Territory was able to adequately supply itself with its own chickens rather than importing, it would keep money circulating in the economy. He lamented that Government for the past six or seven years had not seen the existing chicken processing plant as an opportunity to invest in.

21 Responses to “Chicken processing plant a viable option for Gov’t ”

  • Just Saying (21/11/2011, 08:31) Like (0) Dislike (0) Reply
    Khoy, you need to shut you @$$ up. The Govt of the day give you the plant to utilise as you were the only person and your grandmother when she was alive with a full scale chicken farm. But money turned your head, when you realise that treating dogs paid more than chickens. So you closed up the plant and would not allow anyone else to use it so how come now you want to blame government when you were the one who messed it up. We have another farmer at paraquita bay who does chickens and a young farmer just starting out, why the hell you don't open the plant and let them see what is going on in there and also utilise it . Instead of try to lay the blame you need to take the weight of if with your negligence. KHOY SPEAK THE TRUTH, STOP GOING IN CIRCLES, YOU CARRY A BIBLE NOW AND GOD DON'T SLEEP.
    • * (21/11/2011, 09:45) Like (0) Dislike (0) Reply
      school chayren say he breeding dangerous dogs there now
    • Crank Shaft (21/11/2011, 10:03) Like (0) Dislike (0) Reply
      Thanks for telling the truth! I'm surprised more people aren't exposing Khoy for his flip flopping. The man breeds dogs for fighting and on here everyday ranting like he's Farmer of the Century!!! I don't know why they don't tell the story in its entirety instead of just talking what's beneficial to them! Just because the Government won't let him get his own way, he's upset and spreading propaganda. The news media need to hold these people feet to the fire and investigate these claims!!! Take a trip up to the farm and see what's going on !!
      • yellow (21/11/2011, 11:25) Like (0) Dislike (0) Reply
        "crank shaft" why you aint call the police from on here bloging crap???by the way the VIP government give Mr. Khoy $$$ to help with his plant...he need to tell the people about that!
      • Research (21/11/2011, 20:37) Like (0) Dislike (0) Reply
        Talk about haters. If you guys want to get into the chicken business then you should go build your own. Government has an abbatoir that they use for processing pork and beef. They never built a plant for processing chicken. Instead steadily criticizing, why don't you put some proposal together to help to improve the economy.
  • QICK SAND (21/11/2011, 09:32) Like (0) Dislike (0) Reply
    Is Khoy looking for a bail out by we dey tax payers???? I think NOT! leave this to the prviate sector
  • Suggestion (21/11/2011, 10:32) Like (0) Dislike (0) Reply
    It is not for the government of the day to invest in this kind of business as this should be a private enterprise. The government should encourage it by giving tax breaks or increasing tax on imported to chicken in order to make local product more sustainable. What Mr.Smith needs to do if he doesnt have the money himself is look for an investor, whether it be someone local or better yet a foreign owned company that is already in this business. This could be operated as joint venture, with the majority of funds remaining in the BVI, whilst at the same time the BVI learning from an experienced hand.
    • Crank Shaft (21/11/2011, 11:59) Like (0) Dislike (0) Reply
      You have a good idea but unfortunately, many locals here do not understand that concept! They've been brainwashed to the point where if they can't get 100% benefits they won't bother getting involved, even if it's a lucrative business. Meanwhile, the expats will get someone to front for them and they themselves would end up reaping most of the benefits! Our Government has created a welfare society with everybody believing their entitled to a bailout of their businesses. I'm sure there are many local and expat investors that would be willing to invest in such an enterprise, provided that the business plan is a viable one! We need to WAKE UP and own a slice of the economic pie in BVI and stop depending on Government for everything. Partner with experienced people with funding etc. and reap the benefits. Ensure that everything is done in a legal manner, paperwork etc. and you'll be fine!!!
  • Khoy's Brother (21/11/2011, 11:13) Like (0) Dislike (0) Reply
    Here is the TRUTH. The Chicken Plant that you guys think the then government gave to my brother, was funded privately by my brother "Khoy Smith" and backed by my mother " Moviene Fahie". The land on the other hand is government's which is leased to farmers. My brother, "Khoy SMith" has dogs on his compound to protect his property because the Security Guards/Watchmen @ Paraquita Bay DO NOT watch the farms, they are there to watch the OFFICE. Anybody could drive in and out of paraquita bay agricultural grounds without consent. And furtherly, my brother "Khoy Smith", Studied Veterinary Science for some years and worked with the Department of Agriculture as a Veterinary Assistant/Nurse, which is why he treats and cares for animals. If my memory serves me right, my brother, might have assisted a few poultry farmers in processing at his plant in the early stages, however, the PLANT did not cost TWO CENTS to build, and it DOES NOT COST TWO CENTS to MAINTAIN!!! May I also continue to mention, Chicken must be raised and cared for at a certain quality and be free of any threatening factors that would contaminate the plant. The cost of electricity has gone up, the price of feed, and chicks have gone up!! and these are just a few factors why the plant which is PRIVATELY OWNED, PRIVATELY FUNDED, and PRIVATELY MANAGED, is locked up with BAD DOGS, and shouldnt be a bother those who knows NOTHING, or a PIECE of the TRUTHHH!!! All, the plant and as well as farmers need is some subsidy in order for the POULTRY INDUSTRY could be succesful, and i could guarantee that the subsidy to such, will not cost as much, in 25 years as it costed to erect the GREENHOUSES, or as much in 1 year as was wasted on PHASE 3 of the Purcell Ghut Project. and i am GARVIN DOUGAN signing out...with that said, you should not come on a public website and call utter B.S. and propaganda or what you believe, the TRUTH.
    • oops (21/11/2011, 18:59) Like (0) Dislike (0) Reply
      Garvin/Khoy: The solution to your problem is below: 1. Go to the bank and get a loan for further funding 2. Get an Investor(s) to fund your business 3. Sell the business and get out of chicken processing Garvin:"If my memory serves me right, my brother, might have assisted a few poultry farmers in processing at his plant in the early stages, however, the PLANT did not cost TWO CENTS to build, and it DOES NOT COST TWO CENTS to MAINTAIN!!! " If your statement is true then why are you complaining about the following: Garvin: "The cost of electricity has gone up, the price of feed, and chicks have gone up!! and these are just a few factors why the plant which is PRIVATELY OWNED, PRIVATELY FUNDED, and PRIVATELY MANAGED, is locked up with BAD DOGS" Our economy is not where it was a 5/6 years ago and chicken is a cyclical good (i.e. it represents a low fraction of many budgets when compared to rent, utilities, transportation etc.. additionally, it can easily be substituted for other meats/aimal by products. Stop complaining, stop contradicting yourself and stop throwing a trantrum. You are not the only privately held business in the BVI that is faced with increasing input prices, reduced product demand and lagging sales. If this project isn't where you would like it to be today then its not the government's fault its your fault for not being creative, innovate and differentiating yourself.
      • Khoy's Brother (21/11/2011, 20:33) Like (0) Dislike (0) Reply
        Perhaps you missed the point where the subsidy is to benefit the other existing poultry farmers and aspiring poultry farmers and also to keep money in the country. Tell me what will getting a loan solve...for the other farmers and yourself?
  • Sowande (21/11/2011, 14:08) Like (0) Dislike (0) Reply
    Love and blessings to all. Thank you for clarity Garvin. Two points. Firstly, thank you all for your contributions, but my people, do not allow hate hate to choke us of our humanity. Why must we constantly call our own brothers and sisters stupid, idiots, crooks? Why do we spread false rumors? Love conquers hate! Secondly, Governments give incentives for developments all the time. Governments around the world even subsidize farmers. No one is asking anything unreasonable of Government. They campaigned saying they would help create jobs and stimulate the economy. We gave them a suggestion of how to do that. Government can take action to stimulate the private sector. This should be done for local investors as well. Make more land available. Didn't biwater get the land they needed. As representatives of people form investment clubs in the districts and help your people invest in the economy. Look at the incentives in the development agreements and extend the same courtesy to our people. This is not "handout." this is leadership! Peace, blessings, and love!!!!
  • chicketty chick (21/11/2011, 14:12) Like (0) Dislike (0) Reply
    "The cost of electricity has gone up, the price of feed, and chicks have gone up" - Welcome to the real world Messers Smith and Dougan! I am sure that the price of your end product has also gone up as a result so i dont see your argument. This is still a private business and unless we become a communist state the government have no rights to be involved with the running, operation or funding of your business. As "Suggestion" said - go and find an investor experienced in this business to bring not only the funds that you need but also to add value to your business. You will still be able to make better money than you are now, whilst providing a solution to the problem of imported product. Go and find them, dont wait for the investor to come to you. Onto Cromwells suggestion that the plant could handle 4000 chickens in an 8 hour shift seems a bit on the highside - I am estimating that to be about 10MT's daily, as much as we eat chicken here i dont think that is a practical quantity. But once Smith and Dougan get an experienced investor here they can be the judge of that.
    • Prophecy (21/11/2011, 20:00) Like (0) Dislike (0) Reply
      You know what? I have to disagree with you. Of course the price of the chicken would go up. Then do you know what? The imported chicken would be purchased and the local ones would stay in the freezer of ALL the supermarkets. This was already happening. I personally could not afford the price of organic chicken. I agree with the suggestion for Government assistance.
      • HMMM (22/11/2011, 09:32) Like (0) Dislike (0) Reply
        Ok so our taxpayers money should be used to bring down the cost of chicken. Now we have the problem that the government dont receive the revenue by the way of duties/wharfage etc for imported product as we no longer need to import. Where does the government get its money from if the government give money out all the time? A business is a private enterprise and needs to be run properly. If its not run properly it will go out of business. Why should my tax money go to build your private business? Get an investor (other than government)
  • tell the people the truth (21/11/2011, 17:47) Like (0) Dislike (0) Reply
    but has the VIP government give him money or not????? Tell the people the truth from on here asking people to blog for you deman
  • E. Leonard (21/11/2011, 22:12) Like (0) Dislike (0) Reply
    The BVI is a nation that import almost everything from construction material to clothing to food. Nonetheless, it needs to aggressively pursue opportunities to reduce food, as well as other imports, to reduce "leakage" in the economy and to expand economic growth. One opportunity can be producing poultry to meet and/or reduce import: poultry parts, eggs, fertilizer....etc. The poultry industry can be funded either through private capital or through interest free, low interest government loans or government guarantee of these loans. Further, government can also assist the industry through fiscal policies (duty, taxes..etc). But the industry must be managed and regulated to protect the health and safety of consumers. Moreover, the industry/product must be competitive with imports in quality, price, and service. Small local businesses are an engine that keeps the economy humming; local expenditures keeping money circulating in the economy and staying in the territory. $$ spent locally are re-spent, raising overall economic activity. Moreover, $$ spent locally reduces "leakage" in the economy and has a multiplier or ripple effect; they provide income and direct/indirect employment for Virgin Islanders. One dollar spent in the local economy is valued more than one dollar due to the ripple effect. For example if the estimated $8M annual poultry import bill is cut by 25% ( $2M) and assuming a multiplier of 2.0, the benefit unleashed on the local economy could be up to $4M. Additionally, assuming an employment multiplier of 20 jobs per $1M of sales, the $2M projected sales could equate to 40 jobs. These benefits does not include the one time construction spending and employment to construct facilities. We should not throw food to an Virgin Islander in a hole; instead we should provide a ladder for them to get out of the hole.
  • E. Leonard (21/11/2011, 22:36) Like (0) Dislike (0) Reply
    The BVI
  • Confucius (22/11/2011, 07:40) Like (0) Dislike (0) Reply
    I am not against government investing in our own people and in particular in the area of agriculture. I think a chicken farm and processing plant is a very good idea. However, if there is going to be government investment then there must also be government oversight and accountability. If Mr. Smith and others are granted a secured (interest free) LOAN to restart this business, the government should have the power to approve and oversee budgetary spending on an annual basis until the LOAN is paid back in full. I also believe that should a company go bankrupt for whatever reason after having rec’d a government loan, those persons should not be eligible for a second loan for any other purpose at any time. I would not agree with an unsecured LOAN nor ANY loan unless government is able to approve spending at all levels, including salaries. In this case, the oversight should come under the auspices of the Ministry of Agriculture.
  • Sowande (23/11/2011, 14:56) Like (0) Dislike (0) Reply
    E. Leonard and Confuscious... Very sensible suggestions! Keep up the posting, and let's keep the debate at a high level!


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