October 14, 2024

Minimal impact on egg prices in Malaysia expected if subsidies end, poultry group says

The Poultry Breeders Association of Selangor, Malaysia, does not foresee a significant rise in egg prices should the agriculture and food security ministry proceed with the removal of subsidies for chicken eggs, Free Malaysia Today reported.

Deputy chairman Idrus Zainal Abidin stated that while the removal of subsidies may slightly affect operational costs, the impact on the price of eggs would be minimal.

He noted that even if subsidies are reduced or fully removed, the increase in egg prices would only be modest. "The price increase might only be around MYR 0.02 to MYR 0.03 (US$0.0047 to US$0.0070) per egg because the subsidies we receive aren't that significant," Idrus told FMT.

Malaysia's Agriculture and Food Security Minister Mohamad Sabu, also known as Mat Sabu, recently announced that the government is considering ending the subsidies for chicken eggs if supply stabilises. He indicated that the savings from the subsidy removal could be redirected to support other key agro-food sectors.

Idrus confirmed that egg supply in the market is currently stable, with consistent demand from consumers. "From my perspective as a consumer, the egg supply is stable, and as a farmer, I feel that demand has remained steady so far. Our supply is sufficient, and there's no longer a significant need for imports, only minimal amounts if any," he explained.

In June, Malaysia's Prime Minister Anwar Ibrahim announced a reduction in the retail price of grade A, B, and C eggs nationwide by MYR 0.03 (US$0.0070). This subsidy scheme required an expenditure of MYR 100 million (US$23.3 million). Last year, the government spent MYR 927 million (US$216 million) on similar subsidies.

-      Free Malaysia Today