April 11, 2022

Malaysian farmers association do not blame traders for soaring chicken prices

Tan Chee Hee, president of the Federation of Livestock Farmers Associations of Malaysia said there are local traders selling chicken at MYR 10 (~US$2.37; MYR 1 = US$0.24), per kg higher than the government's ceiling price of MYR 8.90 (US$2.11) per kg but it is understandable due to rising costs beyond the control of the poultry industry, The Sun Malaysia reported.

He said that while the ceiling price is helpful for poorer consumers, chicken sellers also need to make a profit.

Tan said if left to the market, chicken prices would be higher, citing prices of up to MYR 20 (~US$4.73) per kg in neighbouring countries.

He called on the government to conduct a study on the cost of chicken per kg from the farm to the table, especially as prices of feed like cornmeal and soybean has increased between 30% to 40% since Russia's invasion into Ukraine.

A chicken wholesaler said the ceiling price for chicken has resulted in very low profits. He did not want to be named.

He said traders have to pay for transport, fuel, drivers, support staff, toll, and insurance to get the chicken to market, adding that diesel prices have increased.

He also said traders prepare backup staff if drivers or a helper is unavailable, which incurs additional costs that cannot be passed to consumers.

He said if the chicken ceiling price is increased above MYR 10 (~US$2.37), it will provide breathing space for the industry but consumers will be unhappy.

-      The Sun Malaysia