KUALA LUMPUR – Stakeholders have urged the government to address the country’s chicken egg supply issue as a prolonged shortage in the market can lead to a total collapse of the industry.
ArisProp Holding Sdn Bhd managing director, Datuk Haris Embong, who is in the livestock sector, said the shortage was caused by the inability of chicken breeders and industrial operators to bear their overheads due to the ceiling prices in the retail market.
“The main reason is that they cannot cover the cost of production, compared to the set (ceiling) price,” he told The Vibes’ Bahasa Malaysia sister publication, Getaran.
He said that the situation caused some small businesses to shutter, especially those that did not receive subsidies.
“Basically, chicken egg suppliers have decreased because the average small-scale chicken egg producer stopped their operations, while large industrialists reduced production.”
“If the production is on a scale of 10 and the demand for chicken eggs is on a scale of 9, this means they (suppliers) can accommodate the demand.”
“But if the production has been scaled down to five or six, then the stock is insufficient.”
“There is no doubt that in Malaysia, there are some breeders who do not have a licence, so they are exempt from getting subsidies. In this case, it forced them to close down (their farms),” he said.
Haris said that unless the matter was addressed swiftly, the meat industry, including the supply of chicken eggs, was faced with an impending “collapse.”
He said he now expected the new government to take action and to listen to farmers’ complaints on the matter, apart from investigating the cause of the shortages and finding the best solution for the issue.
“It takes about three to four months to stabilise the price of eggs in the market,” he said.
In addition, he hopes that a ministry will be established to empower consumers and deal with their issues, apart from finding the best mechanism to ensure sustainable ceiling prices.
He also said the ministry should monitor the supply and demand of chicken eggs in order to stabilise the industry.
Federation of Malaysian Consumer Associations deputy president Mohd Yusof Abdul Rahman, said the government must negotiate with the breeders to reach a consensus on fixed prices.
He said breeders wanted the government to set a more “logical” price for chicken eggs that was satisfactory for all parties.
Yusof also urged consumers to be patient until a new cabinet is formed and until the appointed minister can help resolve the shortage issue.
Earlier, a number of traders, including grocery stores and food sellers, had complained of a shortage of eggs which has been affecting them for a month.
The shortages had forced some wholesalers to stagger their sales to avoid a full depletion of supplies. – The Vibes, November 27, 2022
