September 22, 2006

 

Malaysia's chicken suppliers told to absorb costs
 

 

Chicken prices, which have increased significantly over the past few weeks, could be overcome if suppliers and retailers absorb the price difference, said President of the Negri Sembilan Consumers Association (NESCA) Khairuddin Yunus said Thursday (sep 21).

 

Yunus urged retailers to refrain from profiteering at the expense of consumers by raising prices.

 

The Federation of Live Fowl Associations of Malaysia (FLFAM) has raised retail prices starting Sep 22.

 

Live chicken prices have risen almost 20 percent to RM4.20/kg (US$1.14) while processed chicken has risen almost 15 percent to RM5/kg (US$1.36).

 

Despite the increase, the new price is still below the government ceiling price of RM5 and RM6 per kg for live and processed chicken respectively. However, Khairuddin said the increase was unnecessary and was "too much to stomach" and urged consumers to show their displeasure over the price increase.

 

In related news, Malaysian Agriculture Minister Tan Sri Muhyiddin Yassin assured Parliament there would be an adequate supply of chicken, eggs, beef, buffalo meat and mutton for the coming festivals, including Ramadan and Chinese New Year.

 

Most of the items would be supplied largely by local farms. Only part of the supply would be imported in case of any shortage, he said.

 

According to him, the supply of chicken during the festive seasons is expected to increase by between 2.9 percent and 4.7 percent during the period.

 

Egg supply would be nudged up by 1 percent to 18.29 million a day. 

 

Beef and buffalo meat, however would see the greatest increase during the festive season, rising 27 percent to 14,320 tonnes a month.

 

Beef and mutton would be supplemented by India and Australia respectively, if there is a shortage.

 

As for the development of the Beef Valley, the 2,000 hectare site in Gemas in the state of  Negri Sembilan, Muhyiddin said the ministry would decide on the principal company to help the Government develop the area by next week.

 

Beef Valley is Malaysia's attempt to gain self sufficiency in beef. Currently, most of its beef supply comes from abroad.

 

Several local companies with foreign partners in Australia had already been shortlisted, he said, adding that operations would begin by May next year.

 

At least 10,000 head of cattle would be included in the first cycle of the feedlot system, he said, adding that there would be three cycles with 20,000 animals each, maturing in three to five years.

 

He said there would be 310 satellite farms nationwide linked to the National Feedlot Centre. The centre would supply 40 percent of the production of Beef Valley while the rest would come from satellite farms.