Malaysia registers odd trend in poultry sector

Malaysian broiler companies lost money in the first quarter, while egg companies collect baskets of cash.

 

Broiler producer Farm's Best Bhd said selling prices had declined and the economic slowdown had reduced consumption at retail level. The company reported a loss of MYR2.6 million in the first quarter.

 

Leong Hup Holdings Bhd, one of the country's largest broiler producer with annual sales of over MYR1 billion, lost MYR9.3 million in its latest quarter from a loss of MYR1.6 million a year ago. The company attributed its loss to a decrease in selling prices of broilers and day-old-chicks.

 

But with recent selling price improvements, Leong Hup is expecting a satisfactory performance in its current financial year ending March 31, 2010.

 

In the egg sector, QL Resources Bhd has maintained a relatively high pre-tax profit of MYR14.8 million in its fourth quarter, comparable with MYR14.4 million in the previous corresponding quarter.

 

QL Resources' managing director Chia Song Kun said egg prices were high, averaging at an ex-farm price of 28 cents each for grade A eggs in the first quarter.

 

US$1 = MYR3.49032 (Jun 4)