January 14, 2004
Chicken Prices in Malaysia to Increase after the Chinese New Year on Price Hikes of Feed
An eFeedLink Exclusive Report
Malaysia's Domestic Trade and Consumer Affairs Ministry and the Federation of Livestock Farmers' Association of Malaysia (FLFAM) will be holding a meeting soon to draw up a proposal and to discuss the details of adjusting the price cap for broilers after the Chinese New Year.
According to the chief of the broiler division of FLFAM, Mr Ye Jinhua, the Federation will pass a resolution requesting that the Ministry to raise the price cap of live chickens and retail price of slaughtered chickens to Ringgit 4.30 per kg (an increase of 70 cents) and Ringgit 6.20 per kg (an increase of 80 cents) respectively.
Currently, prices of live chickens are capped at Ringgit 3.50 per kg and retail prices of slaughtered chickens at Ringgit 5.40 per kg.
Mr Ye explained that such a request is warranted, given the soaring feed prices and acute losses resulting from the higher production costs faced by chicken farmers.
After the meeting of the broiler division at the Federation headquarters, Mr Ye revealed that the request for adjusting price cap for chicken had been put forward to the Ministry many years ago. But the earlier suggestions were all rejected and coupled with excessive chicken supply in the domestic market, the proposal to adjust the price cap of chicken can only be put forth now.
He added that there would be another meeting between the Ministry and the Federation, during which the problem faced by chicken farmers will be discussed. Also, the relevant proposed price caps will be examined, in order to draft a new proposal to be passed in the cabinet.
He said that although the Ministry has given its nod to discuss the relevant issues, the new price cap would only be officially effective, after it has been announced in the Constitution paper.
He expressed that the current price cap has been implemented ever since the government first listed chicken as a control item many years ago.
According to Mr Ye Jinhua, the price caps for live chickens and slaughtered chickens during the Chinese New Year will remain unchanged, at Ringgit 3.50 per kg and Ringgit 5.40 per kg respectively.
When being asked about the issue whether retailers would sell chickens below the price cap, he replied that as sales increase, retailers would generally sell chickens according to the current price cap.
On the issue of smuggling day-old-chicks, he revealed that the Federation has already promulgated that a Ringgit 5000 reward will be given to those with reliable information; however, the Federation has yet to receive any concrete information till date.
A 17% increase in feed prices by some of the local feed millers has negatively affected chicken rearing in the country.
The move by some local feed millers to raise feed prices for fear of an increase in prices of corn imports from the United States is a very unfair trade practice, which will severely affect the operations of local farms.
He pointed out that some of the local feed millers have raised the price of a 50-kg bag of feed from the previous Ringgit 48 to Ringgit 56. The government deplores these feed millers' practices of taking the advantage to sell their reserves at high prices.
US$1 = Ringgit 3.80