KUALA LUMPUR – The Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) has lauded the government’s move to discontinue the maximum retail price scheme for poultry on June 30, but has called on the Domestic Trade and Consumers Affairs Ministry to discuss “reasonable” prices for the fresh meat soon.
FLFAM advisor Datuk Jeffrey Ng Choon Ngee said negotiations on the matter are crucial in reaching a consensus on the new prices for chicken and to ensure all stakeholders will benefit from the outcome.
“The method of putting chicken prices on float needs to be implemented to assist affected breeders, especially due to the rise in chicken feed for almost the past two years,” he told The Vibes’ Bahasa Malaysia sister publication, Getaran.
“We hope we can discuss this matter with the government so that there is an understanding of the prices. We will be transparent with the government about the costs that we (breeders) incur so that it will understand our problems.”
Ng added that the “reasonable” prices would be determined from the talks, as it would ensure “justice” for breeders, wholesalers, retailers, and consumers.
He also said the new prices would not be “too exorbitant” despite the economic situation, and high inflation.
Under the scheme, the price of chicken is capped at RM8.90 per kg, while “super” grade chicken (which is chicken that is slaughtered and processed to exclude feet, heads, and unusable organs) is set at RM9.80 per kg.
On the other hand, fresh chicken from the farm is set at RM5.60 per kg, but that includes subsidies of RM1.40 per kg.
On Friday (June 17), Ng warned that chicken prices would exceed RM10 per kg following the end of the maximum retail price scheme, which also means the termination of subsidies for breeders on June 30.
However, Ng said today that putting the chicken prices on float was needed as the breeders were making losses due to the current RM8.90 ceiling price.
“The prices of chicken should not be too high, but at the same time, we do want certain quarters to take advantage of the situation when they are floated,” Ng said.
“All breeders know their production costs, and I wish not to comment (on the matter). We have to sit down with the ministry (to explain) as it knows the calculations involved.”
According to Bernama last week, the prices of chicken are expected to rise next month after the maximum retail price scheme ends.
Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi was quoted as saying that the Finance Ministry was drafting the provision of assistance to those in need, which would be finalised at the end of this month.
Meanwhile, Selangor Poultry Breeders Association chairman Idrus Zainal Abidin has urged the government to raise the prices to RM9.50 per kg after the scheme ends.
He said the RM8.90 ceiling price was not relevant, given the increase in prices of chicken feed and shortage of migrant labourers.
“We cannot sustain with the current price. It is almost impossible, as the price of chicken feed alone has shot up four folds in 19 months. I feel that RM9.50 per kg should give us some breathing space,” Idrus said when contacted.
“At times, we only make 50 sen profit, and other times, we can only cover costs. So now, we really depend on volumes. This is not baseless talk, as we have the facts.”
He added that the prices of chicken would still be reasonable as consumers paid much for other food items such as seafood.
“For example, people are willing to pay RM40 per kg of prawns. Cencaru (torpedo scad) fish was RM6 per kg, but now it is at RM10, and people would still buy it.” – The Vibes, June 19, 2022
