July 4, 2022
Chicken traders in Malaysia laud new ceiling price for poultry
Chicken traders in Malaysia have praised the government's decision to review the country's poultry ceiling price to MYR 9.40 (~US$2.13; MYR 1 = US$0.23) per kg as of July 1, who said it is a win-win situation for all parties involved in the supply chain, the New Straits Times reported.
Compared to the old ceiling price of MYR 8.90 (~US$2.02) per kg, the traders claimed they no longer have a reason not to adhere to the new price.
Azhar Ariffin, a vendor at a local market called Pasar Besar Jitra since 1998, said they were appreciative of the decision because they could now make a respectable profit.
He said the supply that was provided to them was for MYR 9.20 (~US$2.08) per kg, compared to the ceiling price of MYR 8.90 (~US$2.02) per kg. But he now he receives live chickens from suppliers at MYR 7.20 (~US$1.63) per kg to sell at MYR 9.40 (~US$2.13) per kg.
Wan Suzaini Wan Ismail, a chicken trader at the Changlun farmers' market, said that the supply has stabilised as a result of the chicken farmers' decision to end their protest after the government began delivering the subsidies it had promised to them.
Azman Adam, the enforcement director for the Domestic Trade and Consumer Affairs Ministry, said there is no justification for retailers in rural areas to sell chickens above the ceiling price.
He said that the new ceiling price was chosen after considering the profit margin and transportation costs for each participant in the supply chain.
While the new ceiling price seemed a bit high to consumers, Consumer Association of Kedah president Mohamad Yusrizal Yusoff said it was fair for the time being.
He said is still reasonable when compared to the previous price, which peaked at RM10.50 per kg and was a significant burden.
Yusrizal said the government should work to stockpile surplus chicken as a way to lower and stabilise market prices.
Yusrizal also said that the government ought to use other mechanisms in addition to subsidies.
He said the government should take a number of factors into account in the production of chickens. The cost of imported corn is one of these elements, as is the increase in labour costs for farmers.
He also said the government is drafting a proposal to lower labour costs for farmers, which calls for a decrease in the hiring of foreign workers to bolster the local labour force and lower labour costs.
- New Straits Times