The high chicken pricves are no deterrent to the public who have a craving for the popular meat. The Malaysian Insider pic by Afif Abd Halim, July 27, 2013.Prices of chicken, the most popular meat in Malaysia, had spiked recently due to a weaker ringgit, higher minimum wages and rising cost of feed but not due to any shortages, a farmers group told The Malaysian Insider.
Federation of Livestock Farmers of Malaysia (FLFAM) secretary-general Jeffrey Ng said higher costs have caused chicken prices to rise although its members are producing more birds - 11.9 million birds weekly this month against 10.7 million birds weekly in July 2012.
“Broiler producers were faced with the double whammy of higher cost of feed which is imported, which makes up 60% of the cost of production and the depreciation of the ringgit.
"Cost per bird had risen to RM5.12 a kg in July this year compared to RM4.67 a kg in July 2012,” Ng said in an interview with The Malaysian Insider in Kuala Lumpur this week.
He said the situation has been compounded by the imposition of minimum wage of RM900 per month by the government this year.
"FLFAM members were paying their farm hands an average of RM600 per month and the new wage is a rise of 50% exclusive of allowances,” added Ng.
He also said wet market prices for chickens factored in the cost of special chops and removing the skin of the chicken. Retail price for chickens had soared to as much as RM9 a kg this month from the previous level of RM6 to RM6.50 a kg in mid June.
Ng said the Competitions Act and Anti-Profiteering Act regulated the industry, preventing wanton price fixing to capitalise on the Ramadan fasting month and Aidilfitri celebrations.
“The price of chicken is determined by the laws of demand and supply but on the part of the suppliers we have increased production whenever there was excess demand. Have you ever encountered a situation where you run out of chickens in hypermarkets and wet markets?” Ng asked.
The Ministry of Domestic Trade, Cooperatives and Consumerism had proposed to import chicken and recommended that consumers boycott the meat while saying prices would be fixed for the festive season.
Yesterday, it set the price of chickens at RM7.70 a kg for a period of 17 days.
Ng said FLFAM members were satisfied with the price set by the government to control the spiraling price of chickens which was going out of the roof.
But Federation of Malaysian Consumer Associations (Fomca) president Datuk N. Marimuthu said the issue of high chicken prices was surrounded by hype and a perennial story played up every Ramadan season.
“Fomca has no issues with chicken prices and we believe that the high prices during festive seasons is a normality as it was demand driven.
"People have alternatives, those who cannot afford wet market chicken prices should buy from hypermarkets,” he told The Malaysian Insider.
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