Enforce ceiling rates for poultry farmers, wholesalers: Fomca

KUALA LUMPUR – The government needs to have ceiling rates for poultry farmers and wholesalers to ensure prices are fair and does not benefit only certain parties, said Federation of Malaysian Consumers Associations (Fomca).

Its deputy president Mohd Yusof Abdul Rahman said there are greedy and irresponsible parties who take the opportunity to charge exorbitant prices, resulting in traders having to sell above the ceiling price for meagre profits.

“It is common for poultry traders to pay suppliers the consumer ceiling price of RM9.40 per kg, causing them to sell at a higher price but risking legal action during price checks by the authorities.

“So, the government should set prices for farmers and wholesalers, so retailers know how much they should pay for chicken. Authorities can also enforce ceiling prices at the producer level,” he told Getaran, The Vibes’ sister portal.

He said this in response to some traders having to sell above the ceiling price due to high prices set by their suppliers.

A survey by Getaran found that small retailers, such as sundry shops and family grocers, have raised chicken prices to RM10.70 per kg.

However, they are adamant about not revealing the names of their suppliers or even the invoices detailing their purchases in fear of retaliation – being cut off by their suppliers.

Yusof said the government in tandem needs a detailed study on costs borne by farmers, food manufacturers and others along the supply chain, as well as livestock medicine, to strengthen the country’s food security.

“Malaysia has the capability to produce livestock feed and vaccines as our food security is currently affected by the import of such items. These imports are dependent on external factors such as the Ukraine-Russia war, currency exchange rates and the prolonged pandemic.

“It is hard to stabilise food prices when we are at the mercy of external issues. For example, when the ceiling price was set at RM8.90 per kg, the supply decreased because the farmers said the price could not cover their production, but when it was set at RM9.40, the supply of chicken was plentiful.

“It is strange… whether the stock was intentionally held back or there are other factors. But we cannot deny the external factors that influence our food prices.”

Effective July 1, standard chicken has a new ceiling price of RM9.40 per kg in Peninsular Malaysia, while ceiling prices for chicken eggs increased 2 sen for three categories – 45 sen each for grade A, 43 sen for grade B and 41 sen for grade C.

Prime Minister Datuk Seri Ismail Sabri Yaakob earlier announced that the Bantuan Keluarga Malaysia cash handout had been increased by RM100 for households and RM50 for single individuals from the B40 group, and eligible recipients can check the payment status from June 27 onwards.

Previously, the government made an about-turn on removing subsidies for chicken and eggs after fierce public backlash over rising inflation. – The Vibes, July 3, 2022