Malaysian meat demand unaffected by H1N1 flu fears

Despite fears over the consumption of pork following the outbreak of the H1N1 influenza virus, demand for other types of meat has remained relatively stable in Malaysia.

 

QL Resources group accountant and group head of investor relations, Freddie Yap said there is no big jump in demand for products, adding that demand for basic food such as eggs, poultry and fish remains stable.

 

QL is mainly involved in the manufacture of marine products, oil palm plantation and milling, and feed commodities and livestock farming.

 

Industry players said demand for pork products had fallen slightly in the past week.

 

A poultry trader said that people are still consuming pork products but in lower quantities, and that there has been an increase in demand for chicken for which sales are slowly picking up.

 

Traders said beef, chicken and fish products could benefit from an increase in demand arising from the A/H1N1 influenza scare. Their prices could also increase on expectations that consumers would turn more to chicken and fish.

 

However, World Health Organisation has assured consumers that there is no risk of infection from well-cooked pork and pork products.

 

According to the Federation of Livestock Farmers' Association of Malaysia, the retail price of broilers rose by MYR0.40 to MYR5.20 per kilogramme on April 28 from MYR4.80 on April 23. A month ago, the price was MYR4.70.

 

Meanwhile, the ex-farm price of swine was MYR6.30 per kilogramme in Selangor on Monday (May 4), and MYP6 a month ago.

 

Penang and Province Wellesley Farmers' Association secretary Victor Loo said the farm price increase in broiler prices from MYR3.80 to MYR4.30 per kilogramme was due to higher prices of fertilisers.

 

Chicken feed per tonne is now MYR1,700 compared with MYR1,300 per tonne in 2004, a rise of about 30 percent.

 

According to Loo, the price hike was due to farmers selling chicken below cost at between MYR2.80 and MYR3.80 per kilogramme in the early part of the year.

 

He also said demand for broiler meat was also returning on improved sentiment over the economy.

 

He said in the first quarter of 2009, demand for broiler meat dropped by about 5 percent due to the economic crisis.

 

The Penang-based association has urged domestic trade and consumer affairs ministry not to re-impose a ceiling price for broiler meat as the price of chicken feed had increased by over 30 percent.

 

In 2004, the government fixed the ceiling price of broiler meat at MYR4 per kilogramme but had it removed last year.

 

Loo expects broiler meat prices to drop slightly in the third quarter as broiler production picked up to meet market demand.

 

US$1 = MYR3.515 (May 5)