June 20, 2022

Malaysian farmers' associations project chicken prices to rise further

The Federation of Livestock Farmers' Associations of Malaysia (FLFAM) is projecting chicken prices to surpass MYR 10 (~US$2.27; MYR 1 = US$0.23) per kg after the conclusion of the maximum retail price plan for chicken and the cessation of subsidies to chicken breeders on June 30, Bernama reported.

Datuk Jeffery Ng Choon Ngee, advisor to FLFAM, said if both government incentives are terminated, the total cost sustained by chicken breeders will exceed MYR 7 per kg due to rising chicken feed prices.

The price of chicken in Malaysia is currently MYR 8.90 per kg, while the price of fresh chicken from the farm is MYR 5.60 per kg, but farmers still receive MYR 1.40 per kg in subsidies.

He said the cheapest feed price is roughly MYR 130 per bag, while a kg of feed costs about MYR 2.60. He said the feed cost for roughly 1.7 kg of chicken exceeds MYR 4, whereas the chicks farmers purchase are between MYR 2.30 and MYR 2.40.

The FLFAM advisor said that breeders must cover not only the cost of the chicks and feed, but also other expenses such as salaries, vaccinations, and electricity.

He said that the federation hoped to meet with the government, particularly the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP), to determine a new chicken price that was reasonable and considered the interests of Malaysians and chicken breeders.

Jeffery Ng said a discussion is necessary to ensure that no one takes advantage of the expiration of both incentives by increasing prices.

Chicken prices are projected to rise next month after the maximum retail price scheme expires on June 30, according to media reports.

Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi was quoted as saying that the Finance Ministry was working on a plan to help those in need, which he said would be completed by the end of the month.

-      Bernama