KUALA LUMPUR – The current chicken shortage in the Malaysian market stems from a series of poor government decisions, observed a local player.
The chicken farmer, who did not want to be named due to “fear of repercussions”, pointed towards the rising costs of chicken feed.
“The price of chickens is controlled, but the price of feed made from corn, which we import, has gone up along with transportation costs.
“In the global market, countries are scrambling to get their hands on the feed,” he told The Vibes when contacted.
Now, due to the rising costs and fixed price of chickens, farmers have been forced to reduce their supply.
Maintaining a steady supply of chicken, he said, would see losses borne by farmers.
He stressed that the price of the birds needs to be increased, but the government seems to be lagging or outright refusing to budge on the matter.
Sounding angry and bitter at the federal administration, the anonymous individual said that it is high time the public became upset with the government.
“We, the farmers, want people to be angry with the government, which they are now. The government can't force us to increase our supply either,” he added.
It was further pointed out that two months ago, Putrajaya agreed to allow private companies to import up to 10,000 metric tonnes of frozen chicken, which further intensified the shortage seen today.
He said that when the announcement was made, farmers feared an oversupply of chickens in the Malaysian market.
If there’s an oversupply, chicken prices will fall further and farmers would bear further losses.
“Instead of suffering losses, we decided to reduce our supply in anticipation,” he adds.
However, the plan to bring in the poultry did not come to fruition, seeing the astronomical cost of importing the frozen birds.
“So, when the farmers reduced our supply a couple of months back and the importation of chicken did not happen, we are experiencing the shortage today,” he said.
He also highlighted that the Pakatan Harapan (PH) administration in 2018 had also placed more red tapes for new entrants into the chicken market.
The farmer said that this saw more chicken farms closing than new ones opening, with the policy continuing throughout the Perikatan Nasional and Barisan Nasional administrations.
“Also, the constant lockdowns saw farmers like me losing workers.
“Migrant workers were not allowed in, and the migrants that worked in chicken farms opted to work in factories for better pay and conditions.
“It’s like no one cares about our problems,” he added.
Time for Malaysia to produce its own chicken feed?
Pulai MP and former agriculture minister Datuk Seri Salahuddin Ayub believes that the current administration in Putrajaya is not taking the chicken shortage issue seriously enough.
“The government is not handling this matter seriously and must take the bull by the horns,” Salahuddin told The Vibes.
He agreed that the current chicken shortage issue has to do with a mismatch between supply and demand caused by the rising price of chicken feed.
Salahuddin pointed out that during his time as minister, a long-term plan was in place for Malaysia to have its own supply of feed.
Adding further, he urged the government to consult the chicken industry and to consider providing soft loans to suppliers.
When asked about PH’s purported involvement in adding red tape for potential entrants into the industry, Salahuddin cautiously said, “All the top officers and ministers have to be more facilitating and not make things difficult for the bureaucracy.”
“Let the farmers have it easy to contribute,” he added.
Consider boosting local meat supply to counter high costs of imports: CAP
Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi announced on February 2, that the government will intervene and set RM8.90 as the ceiling price for chicken, which would apply until June 5.
He believes that this move would ensure the stability of chicken prices and related foods.
The Penang Consumers’ Association (CAP) agreed with Putrajaya’s decision in a statement yesterday, although the government would have to allocate subsidies to support the price for consumers.
However, CAP also warned that authorities must take special care to ensure traders refrain from increasing prices.
“We are of the view that the government must seriously consider the need to have more supply of local meat to counter the issue of importing products from overseas, which are expensive.
“It is also crucial to speed up research for an alternative to chicken feed so that Malaysia is not threatened by corn, soy and medicine prices, which currently is 100% imported,” CAP president Mohideen Abdul Kader said in a statement. – The Vibes, February 6, 2022
