December 12, 2003
Malaysia's Broiler Industry Beset With Hurdles; Price War Forecast for 2004
An eFeedLink Special Report
Below is an abstract of the report: Malaysia's Broiler Industry Beset With Hurdles; Price War Forecast for 2004
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With the rapid and substantial rise in feed prices, coupled with the Malaysian government's opening of the domestic market to frozen broiler imports from China next year, the country's broiler market is forecast to face a rigorous price war next year.
At the ASEAN summit held in Bali in October this year, former Malaysian Prime Minister Dr Mahathir signed a Free Trade Agreement which includes opening of the Malaysian market to agricultural products, including China's frozen broiler products, starting from 2004.
The Malaysian broiler industry has been plagued by a series of hurdles this year. Local broiler farmers, still struggling to deal with the conundrum of excess broiler supply and soaring feed prices, will soon have to face a threat from imports of frozen broilers.
In the past, contraband broilers from Thailand and foreign frozen broiler imports have flooded the local market, which compounded the existing oversupply from local producers. Some local farmers, unable to compete with foreign broiler producers, can only put up a passive resistance. As a result of the constant pressure on broiler prices, retail prices of broiler in Malaysia up till date is only good enough for local farmers to cover their production costs.
Broiler forms a large part of the Malaysian's diet, and yet farmers' profits have dwindled drastically in recent months.
Some broiler farmers complained that they no longer have the financial mean to cope with the price war caused by the imports of frozen broilers. Some of them have yet to recover from the loss incurred from escalated feed prices in recent few months.
More contents in this 3-page report include:
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Malaysian Government Should Implement Taxes on Imported Broilers
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Imported Frozen Broilers Negligible Effect on Fresh Broilers
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Leong Hup Holdings: Chinese Broilers Are Not Cheaper Than Malaysia's
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Doubling as Feed Suppliers, Big Broiler Farmers' Fate Is Intertwined with Their Smaller Counterparts
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Fully Integrated Operation of Leong Hup Holdings
