October 16, 2023

 

Possibility of rising prices for eggs in Malaysia

 

Eggs in Malaysia — specifically, Regular Grade A, B and C — may cost 10 sen more, while chicken prices hover at about RM9 (US$1.90) per kilo when the ceiling price for the items is lifted.

 

The prices of the two items will fluctuate over the next several months depending on supply, with consumers likely to pay more initially before prices stabilise.

 

Datuk Ameer Ali Mydin, who runs one of the largest chains of hypermarkets in Malaysia, said that although the move would help stabilise the supply of chicken and regular eggs in the market, there would be fluctuations in their prices.

 

"I foresee that the prices of regular Grade A, B and C eggs will go up by about 10 sen per egg from 45 sen to about 55 sen," Mydin said. "It can't go higher than the cost of Omega eggs, which are currently sold between 60 sen and 65 sen."

 

He added that the impact on the availability of regular eggs in the market would not be felt immediately following the lifting of the ceiling price.

 

"It's not as though we can turn the supply of eggs on and off, as their availability will also depend on the laying cycles of 40 to 42 days," Mydin remarked. "It will take a month or two for eggs to become more easily available."

 

As for chicken prices, Ameer said they would remain within the current prices even after the ceiling price is lifted.

 

"At the moment, the ceiling price for chicken is RM9.40 (US$1.98) per kilo, but it is being sold at about RM8.40 (US$1.77)," he commented. "I don't foresee chicken prices going up too high even without price control because the price of chicken internationally has dropped.

 

"Even if chicken prices go up, it should be around RM9.40."

 

According to Mydin, the Malaysian government should spell out price-lifting details, including ensuring that suppliers do not resort to tactics that could drive up prices.

 

He added that there is also the Price Control Anti-Profiteering Act, which could be used against unscrupulous parties.

 

During a recent announcement of Budget 2024, Malaysian Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim stated that a temporary ceiling price imposed on chicken and eggs will be lifted to allow market forces to ensure supply.

 

He added that the current retail price is far below the controlled ceiling price, adding that the Agriculture and Food Security Ministry will announce further details.

 

Federation of Malaysian Consumers Associations chief executive officer Dr. Saravanan Thambirajah said removing the price ceiling is timely as there is currently an oversupply of chicken.

 

"While some places might see a slight increase of 1% to 2% in prices, it may be cheaper in some places, Dr. Thambirajah said. "It depends on where and what the demand is."

 

He added that consumers would eventually benefit, as all markets and shopping places would turn to pricing to attract shoppers.

 

"Usually, chicken prices will become the pulling factor. Consumers will be the winners," he claimed.

 

However, he said measures must be taken to ensure sufficient supplies of the items to ensure competitive market prices.

- The Star