July 2, 2010

Malaysia lowers poultry prices

Retail license for chicken will be abolished on July 15, according to the Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

"Although we agree market forces should determine prices, we do not agree with the decision on doing away with the ceiling price for chicken," said Mr Sha'ani when contacted.

"Consumers should use the RM6 (US$1.86) per kilogramme ceiling price as a guideline when deciding whether to buy chicken," he added.

He described the market as "unfair" as wholesalers profited the most and manipulated prices. He also said farmers would earn about the same as they did before the ceiling prices were abolished as their production costs were relatively low.

Meanwhile, banker Calvin Koh Teik Min said the removal of chicken as a control item was unavoidable.

"Nobody is forcing us to buy chicken. If the chicken price goes up too much, consumers can always buy less chicken or not eat it at all," said Mr Koh, who has a family of five to support.

Another consumer, Tan Geak Ling, said changes in the price of chicken would influence household food purchases and affect nutrition. "If the price of chicken goes up, consumers might switch to cheaper options," said Mr Tan.

Customer service manager Tan Sow Fai said rising prices would not deter people from buying essential goods like chicken. "I might cut down on how much chicken I buy though," she said.