Zenag absorbed increased production cost to shield customers

By GLORIA BAUAI
ZENAG Chicken has absorbed significant cost increases to help shield its customers from price volatility over the last two years, its general-manager Stanley Leahy says.
“The Coronavirus (Covid-19) pandemic has battered the company, farmers and manufacturers with a plethora of challenges,” he said.
“There is only so much we can absorb before some costs must be passed to consumers.”
Leahy was responding to questions by The National regarding the increase in retail prices of Zenag chicken products such as Kwik-Kai in store outlets nationwide.
Beginning this month, consumers have shared frustrations on social media platform Facebook, trying to compare where to buy products cheaper.
“We pride ourselves on pricing that is both transparent and consistent,” Leahy said.
“Some of the challenges that affected our production cost included skyrocketing international shipping rates, exponential increases in fuel costs since 2020 and South Pacific International Container Terminal’s monopoly on Papua New Guinea’s largest ports which led to opportunistic fee increases on both imports and exports
“These contributed to the increases in stock feed prices which is the single largest cost for livestock production.
“We are also challenged with failing transport infrastructure that is the dilapidated Bulolo Highway, deteriorating law and order such as the looting of Zenag farm in March and a range of increases to government fees and charges,” he lamented.
The March 12 attack on the farm owned by Highlands Products Ltd resulted in a loss of K1.6 million.