Poultry producers suffering losses due to price cap - farmers' group

Chicken and egg producers are suffering losses due to a price cap imposed by the government at a time when they are facing rising costs, said the Federation of Livestock Farmers’ Associations of Malaysia (FLFAM).

FLFAM said the broiler and layer farm industry had given its cooperation to the government when the Keluarga Malaysia Maximum Price Scheme was introduced between Dec 7 to Dec 31 last year even though they are still experiencing economic challenges.

However, it said the industry is "shocked and disappointed" that the scheme has been further extended to Feb 4.

"The rising cost of chicken and egg production is real, and the industry is still suffering losses.

"In addition, the industry is still waiting for financial assistance such as soft loans or feed cost subsidies from the government.

"The continued loss of farmers’ income will affect the production of the cheapest source of protein in our country. The authorities need to be concerned about the country's food security," it said.

It added that the price control is putting heavy pressure on the broiler and egg industry.

"It is very likely that some parts of the industry, especially the small and medium farms which have suffered huge losses will have to stop operating in the coming months," it said.

FLFAM appealed to the government to subsidise the price cap or shorten the scheme period on top of ensuring the speedy disbursement of soft loans to ensure the sustainability of the industry.

"It is hoped that the government will take action as soon as possible so that the industry will recover and continue to guarantee the supply of chickens and eggs according to demand," it said.

The industry has been struggling amid a surge in global prices for livestock feed and fertiliser following the reopening of economies after a long shutdown due to the Covid-19 pandemic.

The spike in cost and sudden surge in demand saw the local industry unable to meet demand, causing chicken prices to soar.

The government had since allowed the temporary importation of whole chickens as a stop-gap measure to bring down the prices.

According to the Keluarga Malaysia Maximum Price Scheme, the retail price cap for a standard chicken is RM9.10 per kg in Peninsular Malaysia, except for Langkawi where the cap is RM9.60 per kg.

The cap in Sarawak ranges from RM9.50 to RM12.60 depending on the region while Sabah ranges between RM10.70 to RM11. - Mkini