Over many decades the Barbados dairy industry and Pine Hill Dairy have built up an enviable record in the Caribbean by developing a self sufficiency in the supply of milk products to the consumers of Barbados. The path has not been an easy one, but successive management teams have continued to improve the product and distribution system to meet broad acceptance of the consuming public. In recent years the Dairy’s profitability has come under pressure due to several issues including an ageing plant. Something had to change, but what? Without any consultation or public involvement it was decided to change the processing of fresh milk from the refrigerated pasteurized product to an ultra-pasteurized product.
Having applied an accountant’s and engineering solution to a sensitive consumer product with disastrous results, Pine Hill Dairy is now seeking Government’s protection by asking for a firewall against imported fresh pasteurized milk. Despite a whopping 140% import duty the imported milk has been flying off the shelves at Emerald City Supermarket. This is the ultimate taste test for Pine Hill Dairy and a repudiation of their unilateral decision to implement a milk processing system for the convenience of the company without regard for consumer taste.
When the dairy processed and distributed whole pasteurized milk there was never any thought of importing the same product unless there was a serious shortage. Consumer demand for fresh milk was adequately served by Pine Hill Dairy’s product and met the quality taste test of Barbadians and visitors alike. The current demand for imported fresh milk despite a significant price barrier because of the astronomical import duty is a clear indication that the Pine Hill Dairy long life milk does not meet the taste test.
Dairymen themselves recognize the problem and have reported a significant increase in direct sales to the public. This has resulted in plans by individual dairies to install small pasteurization plants to meet the growing consumer demand for an alternative to the Pine Hill Dairy ultra-pasteurized milk.
It seems clear that the market place is sending a clear message and one that the Dairy would do well to heed.
It is also interesting to note that BS&T’s Supercenter chain has not engaged in the direct importation of fresh milk despite the adverse consumer reaction to the Pine Hill Dairy product. Once again it seems that corporate interests trump consumer demand and now the Government is being asked to apply a final solution by totally blocking the importation of fresh milk.
What next? Will the Dairy request that individual dairies be prohibited from setting up their own pasteurization plants to meet the demands of the Barbadians consumers? Where will protectionism end? Will we all be condemned to suffer the results of bad corporate decisions as a result of Government fiat or will consumerism finally trump corporate interests?
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