IT IS expected that there will be minimal hikes in the price of chicken once the price ceiling on chicken ends next year, said a group representing livestock farmers.
The Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) said this partly comes as a result of the declining price of chicken feed which now sells at between RM123 to RM130 per 50kg, reported FMT.
“A rise in chicken prices is guaranteed (after the ceiling is removed) because the current price ceiling is lower than our production costs. If it doesn’t rise, farmers will be at a loss. Who would want to farm chickens anymore if that is the case?” FLFAM adviser Jeffrey Ng said to the news portal.
“However, we expect chicken prices to stabilise and balance out because the price of chicken feed has gone down a bit. This month alone it has decreased by RM2 for a 50kg bag, and we’re hoping that it decreases further.
Ng said if it does, this would mean that the production and operation costs will reduce again, adding that a 50kg bag of chicken feed sold for about RM80 just three years ago.
According to Ng, chicken prices cannot go up too much as it will lead to an oversupply in the market, as no one would be purchasing the birds if prices were exorbitant.
During his Budget 2024 speech, Prime Minister Datuk Seri Anwar Ibrahim had announced that the temporary ceiling price imposed for chickens and eggs will be waived to allow room for the market to freely manoeuvre in ensuring uninterrupted supply.
Anwar, who is also the Finance Minister, said the present trend revealed that the supply of eggs and chicken has stabilised and the present retail price is far below the controlled ceiling price.
He further noted that since February 2022, the government has shouldered a total of RM3.8 bil for chicken and egg subsidies, adding that further announcements will be made by the Agriculture and Food Security Ministry within two weeks’ time.
Meanwhile, Ng also said FLFAM met with government officials yesterday to discuss the suggested prices when the price ceiling is removed.
“We have given our suggestions, and now we wait for the government to decide. We ask the government to help farmers for a while (until prices stabilise). We don’t want farmers to end up registering losses when the prices are floated,” he added. – Oct 17, 2023
Main pic credit: Bernama
