August 28, 2023

 

Chicken in Malaysia sold below government ceiling price

 

The cost of standard processed chicken in Malaysia has notably decreased, with suppliers offering prices below the government's established ceiling price, The Straits Times reported.

 

Mahadi Mubin, a chicken supplier operating from Selangor state, Malaysia, reported a substantial MYR 0.60 (~US$0.13; MYR 1 = US$0.22) drop, bringing the price down to MYR 8.80 (~US$1.89) per kg.

 

He said feed costs remain high, but as suppliers, they have adjusted prices to boost sales and secure profits, acknowledging the industry's economic dynamics.

 

As of June 10, the Malaysian government retained the ceiling price for standard processed chicken at MYR 9.40 (~US$2.02).

 

The country's Ministry of Agriculture and Food Security originally designated July 1 for a "soft landing" approach to phase out the ceiling price for chicken and eggs.

 

Jeffrey Ng, senior adviser at the Federation of Livestock Farmers Associations of Malaysia, observed a declining demand for chicken among members, predicting a corresponding price adjustment from suppliers.

 

"With ample supply and weak demand, suppliers often reduce prices to stimulate sales," Ng said, reflecting market dynamics.

 

Saravanan Thambirajah, chief executive of the Federation of Malaysian Consumers Associations (Fomca), noted the positive impact of the substantially lower chicken prices compared to the fixed limit.

 

He acknowledged isolated instances of chicken being sold above the ceiling price in areas like Perak and Penang. He stressed that external factors like logistics could influence such instances, urging consumers to file complaints with Malaysia's Domestic Trade and Cost of Living Ministry if they encounter discrepancies.

 

-      The Straits Times