Super Value’s owner and other food retailers yesterday urged the Government to clarify what the Prime Minister means by “eliminating the middle man”, as he asserted: “We’ve been ahead of them for years.”

Rupert Roberts told Tribune Business that he and all other food stores spoken to “don’t understand” what Philip Davis KC is referring as he called on the administration to “explain”, for instance, whether this means eliminating the Bahamian wholesale industry that is responsible for distributing and supplying hundreds of international brands throughout The Bahamas.

Pointing out that no specifics on who the Government is targeting, or how such changes will work in practice, have been provided, he added that his 13-store supermarket chain has been sourcing goods directly from suppliers based in countries ranging from Brazil to Turkey and thus needs no assistance.

And Mr Roberts, who said he has been battling to reduce the cost of living for Bahamian consumers for 70 years, hinted at scepticism over the Government’s seemingly-planned intervention in long-established supply chains by arguing that it is “never as efficient as private enterprise” when it comes to logistics.

With Mr Davis’ repeated comments on the subject “all over social media”, the Super Value chief told this newspaper: “That’s wonderful if they are going to bring the cost of living down. I’ve been trying to do it for 70 years. 

“This thing now.. by eliminating the middle man, are they going to eliminate D’Albenas? Are they going to eliminate the US? I don’t understand it. What do they mean? Are they going to eliminate chicken going through America? We buy direct. We don’t buy from the US; we buy from Brazil.

“I wonder who they are going to eliminate? We don’t understand it. We buy from China, we buy from the countries we know produce the product. We buy bathroom tissue from Trinidad. We don’t buy it from the US. We don’t ship it from the US or buy it from them. We don’t understand and would like them [the Government] to explain.

Ever since unveiling the 50 percent VAT rate cut on most food items, which is due to take effect from April 1, the Prime Minister has repeatedly sought to blame The Bahamas’ post-COVID cost of living crisis and high prices on the private sector by suggesting this has been caused by a lack of competition in certain industries.

He has also suggested that prices and costs for Bahamian consumers are too high because of the involvement of unidentified “middle men” in the supply chains that bring goods to this nation, which imports at least 90 percent of what it consumes due to minimal local production and manufacturing capacity.

“We must also look outward, seizing new opportunities,” Mr Davis told the Bahamas Business Outlook conference. “The US has always been our most reliable trade partner, and that relationship will remain strong. But let me be candid: Too many of the goods are imported through middlemen, who are importing from other countries. We’re paying for the middleman, and it is driving up costs for Bahamians.

“We are building a programme to connect Bahamian businesses directly to new markets, cutting out the middleman entirely. This will help you, the businesses of our country, be more cost competitive and create more supply efficiencies.”

Mr Roberts yesterday questioned whether this meant eliminating D’Albenas, Asa H Pritchard and multiple other Bahamian wholesale agencies who hold exclusive distribution rights for hundreds of international brands that Bahamians have come to rely on. He added that these wholesalers can be relied upon by retailers for fresh supplies whenever they are running low on stock.

“I don’t know what they’re going to do,” he reiterated of the Government’s stance. “Is Brazil going to put a warehouse in Freeport? We don’t know anything. There’s been no clear details other than eliminating the middle man and bringing down prices. We’re equally looking forward to that and offering consumers lower prices.

“I think we’re ahead of them. We’ve been doing this for years. We’ve been to China, we’ve been to Brazil. We’ve been all around the world. We’ve bought bathroom tissue from Turkey. We’ve gone to these countries. We’re buying direct now. Any retailers that I’ve talked to cannot figure out what they are doing and saying.

“If we need to do it, let’s do it and bring down prices. Tomorrow morning, Monday morning, let’s bring in better prices. Maybe the smaller stores, which don’t have the volume, maybe they take it from different countries.”

Supply chain intervention, though, is not a new concept. Michael Halkitis, minister of economic affairs, said several years ago at a briefing given by the Prime Minister’s Office that the Government was studying the supply chain and logistics industry in a bid to lower prices and costs at the height of post-COVID inflation.

But Mr Roberts argued: “We know governments are never as efficient as private enterprise and can never do it as easily as private enterprise. I hope they’ve found something that we haven’t been able to discover in the last 70 years or they haven’t in the last 50-55 years. I hope they’ve opened up something that we didn’t realise but I don’t think so.”

Super Value’s owner was backed by Philip Beneby, the Retail Grocers Association’s president, who told Tribune Business of the Prime Minister’s statements: “I don’t know the meaning of it. I guess it’s just a vague statement or thought, or he’s just thinking aloud.

“To put any meat on the bone, none of that has taken place. It’s just a skeleton statement as far as I can say. I guess time will tell what the meaning of it is. They’ll [the Government] probably give us more clarity on it.”

The Government’s supply chain reform efforts to-date have largely been channelled through the Bahamas Trade Commission and its National Trade Diversification Programme. Barry Griffin, the Commission’s vice-chair, said late last year that it had been working with international partners to secure lower prices and offer logistical support for a more efficient distribution system.

“In recent months, we have been working with regional and international partners to secure better prices for essential agricultural and fishing supplies, such as seeds, fertilizers, feed, boxes and storage and fishing gear. By collaborating with suppliers and negotiating directly for bulk orders, we’ve been able to reduce the costs of these inputs, which directly impacts the bottom line for local producers,” said Mr Griffin.

“However, it’s not just about getting cheaper supplies. We’re also focused on ensuring that these savings are passed on to farmers and fishermen. One of the ways we’re doing this is by creating more efficient distribution channels and logistics support, which reduces middleman costs.”