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From chicken shortage to oversupply as poultry farmers
court risk of paralysis
They call for a halt to chicken imports and a focus on domestic breeders instead.
Ahmad Mustakim Zulkifli August 3, 2022 10:00 AM
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With the influx of chicken imports from abroad and the recent ban on dreams of musical career
exports including to neighbouring Singapore, Malaysia's local poultry March 25, 2023 9:00 AM
sector is at risk of paralysis, industry players say.
Ishak Mat Arif of the Selangor state chicken breeders' association said
while the price of chicken had dropped to RM4.10 per kg at farms, the
price of bran feed remained high, at as much as RM140 for one bag
compared to RM80 before.
Daftar Diri
"When chicken imports enter the market but exports are not allowed,
local farmers will be killed off," he told MalaysiaNow.
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"The wrong move will see chicken breeders closing their coops and going
out of business."
Agriculture and Food Industries Minister Ronald Kiandee acknowledged
in the Dewan Rakyat on Aug 1 that Malaysia was facing a "slight
oversupply of chicken" following the measures taken to stabilise the
domestic supply of poultry.
These included removing the need for import permits and closing off the
export of chicken to foreign countries.
He said the oversupply of chicken had caused prices to drop lower than
the ceiling price of RM8.90 and RM9.90 set by the government.
Malaysia's chicken supply crisis had seen prices hitting as high as RM10
per kg at grocery stores.
Local media reports also spoke of a cartel hoarding chicken supplies in
order to manipulate market prices.
The situation was compounded by the grain and supply chain crisis
sparked by Russia's invasion of Ukraine in February, which among others
drove up the price of chicken feed.
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Ishak urged the government to allow exports to Singapore of at least 50%
of the previous capacity.
He said if the local poultry farming industry tanked, it would have a
negative effect on the country as chicken is the main source of protein for
many and cheaper than fish which can go for as much as RM20 per kg.
Mazlina Kamarudin, the managing director of a major chicken supplier
in the country, said wholesalers were still suppressing prices even for
older chickens which were going for just RM3.80 per kg.
She said poultry farmers were now trying to reduce the number of chicks
on their farms, adding that wholesalers and traders charge extra when
the government imposes price controls.
"Costs and profits for breeders before this was about RM7, but when
prices dropped to RM3.80 per kg for the larger chickens, they began to
suffer losses," she said.
"We have to sell this stock, otherwise they will continue to grow."
Mazlina's company, Bismi Empire Sdn Bhd, has resorted to slaughtering
the chickens and keeping them in cold storage.
Nevertheless, they have had to sell off their stock of larger chickens at a
loss.
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The situation is worse for breeders who do not possess cold storage
facilities.
"If there is a ceiling price, there must be a floor price as well," Mazlina
said.
"If there is a floor price, this means that the government must buy it as
buffer stock. But now, there is an oversupply so why are we buying from
other countries? We should just buy from the domestic breeders."
Ishak meanwhile said that chickens which grow too big are not popular
on the market.
But poultry farmers must sell them, even at a loss, as the cost will only
increase if the birds are kept in cages. If this happens, more chickens will
die as well.
Both he and Mazlina said the imports of chicken should be stopped at
once.
"The cycle of chickens is about 35 days," Mazlina said. "When farmers cut
down on the number of chickens on their farms, this means fewer
chickens in the days ahead.
"The chicken industry should not be disturbed," she added. "It should be
left to the forces of supply and demand."
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Tags Editor's Pick Food Security Chickens Poultry Chicken Supply
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