May 7, 2004

Malaysian Poultry Prices To Be Raised Due To High Feed Costs
 

The ceiling price of chicken in the market may be raised due to the escalating costs of imported raw materials used in producing animal feed.

Agriculture and Agro-Based Industry Minister Tan Sri Muhyiddin Yassin said raw materials such as corn, soy bean, palm oil and wheat pollard had gone up by between 6% and 32% between December 2002 and December 2003. 

A recent research conducted by the Veterinary Services Department found that the cost of feed had caused prices for day-old chicks to fluctuate between 50 sen to RM1.50 per chick and the cost of production for broilers between RM2.79 and RM3.32 per kg. 

Muhyiddin said under current ceiling prices, poultry farmers were finding it hard to make a profit and keep their business financially viable.

"There is no easy solution to this problem, and this (increase in chicken price) could be one way to help the broiler chicken industry," he told reporters after a session with representatives from the Veterinary Services Department and the livestock industry.

He added that he would discuss at length with the Domestic Trade and Consumer Affairs Ministry in raising the ceiling price. 

Other issues discussed during the meeting included providing incentives for the agriculture sector. 

"We are asking agricultural companies to allow farmers to rear livestock in their plantations," he said, adding that plantation owners should look at the revenue that could be earned rather than regard it as a potential nuisance.