KUALA LUMPUR – The cabinet’s decision to continue the present subsidies for standard chicken yesterday, received various reactions from poultry associations despite the rise in retail ceiling prices from RM8.90/kg to RM9.40.
The decision, which comes into effect tomorrow, also saw the government deciding not to float the prices of chicken.
Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) adviser Datuk Jeffery Ng Choon Ngee said the newly announced prices will not adversely affect poultry farmers as it is the price that is being sold to consumers at present.
However, he reiterated that the association is waiting for the subsidy rates proposed by the government through the Agriculture and Food Industries Ministry (Mafi) following the announcement.
“So far, we still do not know the form of subsidy that will be submitted by the government and what the mechanism will be, but FLFAM has no issue on the matter (announcement),” he told The Vibes’ sister portal Getaran.
He said the retail ceiling price and the farm ceiling price were two different things and the subsidy provided by the government would determine the cost borne by the farmers.
“Therefore, we will hold discussions with the government through Mafi, to determine the appropriate farm ceiling price and subsidy in the next one or two days,” he said.
In contrast to FLFAM’s views, Selangor State Poultry Breeders chairman, Idrus Zainal Abidin said, the ceiling price announced by the government will cause more poultry farmers to go bankrupt.
The situation, he said, could result in a shortage of chicken supply within the market in the near future.
“I would prefer if the price of chicken is floated because it will create healthy competition in the open market, thus being able to lower and stabilise the price of chicken.
“If there is a shortage of chicken supply this time, I expect it will continue for the long term,” he said.
According to him, to date, as many as three farmers under his association have had to quit as they were unable to continue their business, due to lesser profits earned following the government’s setting of low ceiling prices.
“If the government sets the ceiling price at RM10/kg, we can still make a profit even if it is not much.
“However, with this new rate, the profit margin is greatly reduced and will cause many farmers, especially small ones, to have trouble making capital rounds,” he said.
Malaysians will pay more for standard chicken as the government has set the new ceiling price at RM9.40/kg for Peninsular Malaysia, up from the current RM8.90, while maintaining the subsidy programme.
The cabinet also decided to set new ceiling prices for chicken eggs in Peninsular Malaysia – an increase of 2 sen for three categories – at 45 sen each for grade A, 43 sen for grade B and 41 sen for grade C.
Both sets of ceiling prices will be effective from July 1 onwards.
According to Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee, the rising prices for food items is not just exclusive to Malaysia but is a global phenomenon resulting from geopolitical conflicts and climate change. – The Vibes, June 30, 2022
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