[UPDATED] Keeping it in the ‘family’: Putrajaya bans poultry export amid domestic shortage

KUALA LUMPUR – All poultry exports will be banned June 1 onwards as the government desperately tries to stabilise product supply and prices locally, Prime Minister Datuk Seri Ismail Sabri Yaakob announced today.

This is among several immediate measures taken by the government amid ballooning prices of chicken in the market and shortage of supply recently.

In a statement, Ismail Sabri said the ban on export, which will involve approximately 3.6 million birds monthly, will be in place until the situation in the country stabilises, with priority to be placed on the rakyat.

He said the government will also create a stock buffer, besides abolishing approved permits (AP) for imports as well as facilitating the claim process for subsidies among farmers.

“We will also increase the number of poultry slaughterhouses overseas to be recognised in order to increase supply,” he said after chairing a cabinet meeting to discuss the chicken supply crisis.

He said the government is considering the use of corn as an alternative to chicken feed, while government-linked companies, agencies and farmers’ groups are also encouraged to be involved in poultry farming.

Additionally, Ismail Sabri announced that APs for wheat exports have also been revoked, while all ministries have been instructed to list down the APs of other products that can be similarly abolished. 

He said the current chicken supply shortage is down to several larger local suppliers supposedly halting supplies to the market, as they are not interested in going through the hassle of claiming government subsidies to cushion the rise in poultry costs.

He added that the ceiling retail price for a standard chicken has been set to RM8.90 per kg since February 5, with the remaining amount to be subsidised by the government. 

“However, we found several companies that are not interested in applying for subsidies, and want the government to allow the price of chicken to be determined by the market.”

According to Ismail Sabri, only RM50 million in subsidy, out of RM729.43 million allocated, has been claimed by farmers, mostly among smaller industry players. 

He said the government is aware of reports of the existence of cartels controlling the price and supply of chickens among the bigger companies, and that a probe into the matter by the Malaysia Competition Commission (MyCC) is expected to conclude in June. 

“If it is found that ‘cartels’ are involved, the government will take legal action against them.”

Following advice from the attorney-general, the prime minister warned that action will be taken under the Control of Supplies Act 1961 against any party found hiding chicken supplies or involved in any elements of sabotage. 

Their licences will also be revoked with immediate effect, he said. 

“The government asks the Agriculture and Food Industries Ministry and Domestic Trade and Consumer Affairs Ministry to conduct checks and take stern action against any party that violates the Act and the Control of Supplies Regulation 1974.” 

He added the government will look to reduce its reliance on middlemen for the supply of chickens, which he said have been manipulating prices and supplies. – The Vibes, May 23, 2022