January 3, 2023

 

Malaysia chicken wholesalers earn US$0.30 profit margin

Malaysia's statistics department said chicken wholesalers in the country earn MYR 1.30 (~US$0.30; MYR 1 = US$0.23) per kg profit on chicken, while retailers make MYR 1.25 (~US$0.28) per kg,

 

Uzir Mahidin, Malaysia's chief statistician, said chicken and egg production costs on average was MYR 6.53 (~US$1.49) per kg and MYR 0.48 (~US$0.11) respectively for September 2022.

 

The farm price of chicken in Malaysia can range from MYR 6.86 (~US$1.56) to MYR 7.84 (~US$1.78) per kg, assuming a profit margin of 5% to 20% from the cost of production, he said.

 

Uzir said the farm price for eggs can range between MYR 0.50 (~US$0.11) and MYR 0.58 (~US$0.13) per egg, while the profit margin at the wholesale and retail levels was recorded at MYR 0.04 (~US$0.0091) and MYR 0.02 (~US$0.0045) per egg, assuming a profit margin of 5% to 20% from the production cost.

 

According to Uzir, the Special Study on Production Cost of Chicken and Egg 2022 revealed that farmers' biggest outlay for raising chickens was for poultry feed.

 

He said that in the production of chickens, 1.4% of indirect costs and 98.6% of direct costs were borne by chicken broilers.

 

Feed, day-old chicks, utilities, salaries, vitamins, vaccines, and coop-related expenses are examples of direct costs. Indirect costs include fees and taxes, insurance, and other expenses.

 

He added that purchasing day-old chicks cost (16%) and poultry feed (65.1%) were two of the biggest costs associated with producing chicken broilers.

 

"96.9% of the cost of producing chicken eggs was a direct cost, and 3.1% was an indirect cost. 15.8% of the expenses went toward utilities and wages, while about 76.2% went toward feed for the birds.

 

Former anti-inflation task force chairman Annuar Musa said an egg's average production cost was reportedly MYR 0.51 (~US$0.12) last month.

 

The statistics department said that costs have increased as a result of the pandemic's prolonged effects as well as the high demand and limited supply of feed, although no specific number was provided for the cost of producing chicken broilers.

 

-      Free Malaysia Today