February 15, 2022

Malaysia yet to decide on subsidy extension for poultry farmers

Datuk Seri Dr Ronald Kiandee, Malaysia's Agriculture and Food Industries Minister (MAFI) said the government has yet to decide on extending a subsidy for poultry farmers, Bernama Malaysia reported.

He said the current subsidy, implemented until June 4, 2022, involves an allocation of MYR 500 million (~US$119 million; MYR 1 = US$0.24) to ensure chicken prices remain under MYR 8.90 (~US$2.13) per kg as the market prices for the birds can reach MYR 9.90 (~US$2.36).

The minister said they cannot reduce prices on imported corn as the country does not grow corn for livestock feed.

He said the government is drafting a new policy to encourage local corn production to reduce Malaysia's dependence on imported corn for livestock feed.

Malaysia is providing a subsidy to poultry farmers at MYR 0.60 (~US$0.14) per kg and MYR 0.05 (~US$0.012) per egg from all categories. The subsidies consider live chicken prices of MYR 5.90 (~US$1.41) per kg and the standard chicken retail price of MYR 8.90  (~US$2.13) per kg.

-      Bernama Malaysia