SERDANG – The Agriculture and Food Security Ministry will continue with the existing formula of subsidy distribution to broiler chicken breeders and supplier companies at a division ratio of 10 sen and 70 sen, while poultry farmers in Selangor cry foul with a demand for equal subsidies.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said chicken breeders and supplier companies need to discuss between themselves the distribution of the 80 sen subsidy to overcome the increase in the cost of chicken and egg production, because the government will not intervene in the negotiation of the distribution agreement.
“We are still sticking to what was implemented previously for more than a year. We are sticking to 10 sen (for breeders) and 70 sen (for supplier companies).
“From the ministry’s point of view, the arrangement is business-to-business, meaning between the integrator and contract farmers. When they made a deal, the government was not involved, so it should be an agreement between them,” he told the media at a cordial meeting between the minister and ministry members here today.
“There needs to be negotiations between integrators and farmers to get the right profit-sharing or even the right subsidy sharing, but so far the ministry is of the opinion that we will maintain the existing rates,” added Sabu.
A report published by the local media stated that the Selangor Poultry Breeders Association wants the government to consider the distribution of subsidies to broiler chicken breeders and supplier companies with a ratio of 50:50, as they claim that chicken breeders are going out of business because they cannot afford the hike in operating costs.
Association chairman Muzamri Shoib reportedly reiterated that in broiler chicken farming, breeders sustain the highest risk because they only make a profit through the sale of live chickens, while supplier companies profit earlier in the value chain from the sale of chicken feed, chicks, medicines, and ultimately, chicken sales.
On February 27, the government decided to continue providing subsidies at a rate of 80 sen per kg for chicken and eight sen per egg for eggs until June 2023, involving a cost of RM1.28 billion.
In other developments, Mohamad said the appointment of new chairmen for the five statutory bodies under ministry was made after taking into account their involvement with the community and (the names) had been discussed with the government’s top leadership.
“We can’t choose people who are elitist, while (those chosen) need to know about other matters like fishing, rice growing, and so on. Their records with the community are most important,” he said.
Yesterday, Mohamad in a media statement announced the appointment of five new chairmen at statutory bodies under the ministry which come into effect on May 15.
They are Muhammad Faiz Fadzil as chairman of the Malaysian Fisheries Development Board; Datuk Mahfuz Omar as chairman of the Board of Farmers Organisations; Aminuddin Zulkipli as chairman of the Federal Agricultural Marketing Authority, Azman Ismail as chairman of the Malaysian Agricultural Research and Development Institute. and Sheikh Umar Bagharid Ali as chairman of the Malaysian Pineapple Industry Board. – Bernama, May 11, 2023
