September 8, 2022

 

Economist hits out on Malaysia's poultry export restrictions

 

 

Carmelo Ferlito of the Center for Market Education (CME) hit out on the Malaysian government for permitting only a limited number of poultry farms to export goods, as the market for chickens was "dynamic", Free Malaysia Today reported.

 

Ferlito said when it comes to chickens, demand and supply can quickly change due to scarcities, calamities, bird flu, price increases, and other factors.

 

He said Malaysian farmers may be able to fill supply gaps in other nations. As a result, they shouldn't be subject to restrictions because doing so could result in opportunities being lost.

 

Annuar Musa, the chairman of the anti-inflation task force, said the ban on chicken exports will be lifted in October, but only specific farms will be permitted to raise chickens for export.

 

He said that this was done to guarantee that there would be an adequate supply of chickens for the domestic market.

 

Ferlito said that because of a number of factors, restricting the number of producers who raise chickens for export would not necessarily ensure a sufficient supply for the domestic market.

 

He said that if the only option was to outlaw exports, the issue should have been resolved by June 1 (the date exports were outlawed). Supply was impacted by additional factors, such as feed costs and price ceilings, because farmers were not encouraged to raise more chickens.

 

Even worse, it has caused local producers to miss out on Singapore's lucrative export market.

 

Singapore is Malaysia's top export destination for chickens, but because of the export ban, the nation has looked for a supply source in Indonesia.

 

Ferlito added that because the returns on investment would not be encouraging, such restrictions would deter investors from entering the poultry industry.

 

A poultry farmer who wished to remain anonymous hailed the lifting of the export restriction.

 

He said that a continued export ban could see Malaysian farmers permanently lose the Singapore export market."

 

However, he made note that not every farm in the nation was eligible to export chickens because they had to satisfy the standards established by the receiving nation.

 

With effect from June 1, the Malaysian government banned the export of chickens to relieve a poultry shortage on the domestic market.

 

-      Free Malaysia Today