Chicken breeders hope for free-floating chicken prices as subsidy ends

 

Chicken breeders have expressed their hopes that the government will allow a free float of chicken prices from the previous set ceiling of RM8.90 per kilogramme (kg) following its decision to end the subsidy of 60 sen per kg issued to breeders from Feb 5.

Ayam Bismi Empire Sdn Bhd (Ayam Bismi) director Mazlina Kamaruddin said the termination of subsidies by the government was expected as it was supposed to be provided until this month according to the initial announcement by the Agriculture and Food Industry Ministry.

“We as breeders do not hope that the government will provide subsidies throughout our entire business operations. Only I hope that when subsidies are no longer provided, the price of chicken can be floated. With the end of subsidies, price controls should also end as well,” she said when contacted by Bernama yesterday.

Mazlina said if steps to end the subsidy are coupled with the floating of chicken prices, then supply and demand will determine the price of chicken.

She also agreed with the government’s decision to channel the subsidy directly to Malaysians in need of assistance and hoped that the assistance will be channelled back to chicken breeders through sales, adding that such a measure acted as a stimulus for those in need in terms of buying daily necessities.

Mazlina also clarified that statements about many breeders not claiming subsidies were not accurate.

“Breeders who are selling at a retail price of RM8.90, and live chickens at RM6.05, are selling below cost price. So, of course, breeders will claim and apply for the subsidy.

“Our partners throughout Malaysia, when asked, all of them have made their subsidy claims but the claims have been sent to the district office and then the state office before being forwarded to Putrajaya. So where’s the missing link? We do not know,” she said.

Meanwhile, Selangor Chicken Breeders Association (PPANS) chairperson Idrus Zainal Abidin said the rise in chicken coop materials, combined with the various taxes that need to be paid by breeders to produce quality chickens, are a challenge for him at a time when chicken supply is becoming a problem for Malaysians.

“Two years ago I made my coops with a capacity of 80,000 birds with only RM1.6 million, but just accounting for the rise in steel prices, it’s already RM2 million now. I am building two more large scale coops measuring 70 by 40 feet (21.33 metres by 12.19 metres), (and the price) goes up by RM2 million.

“So, we have to pay so much and it’s very exorbitant and not justifiable,” Idrus said.

It was almost impossible for him to build more coops as there were many conditions and taxes imposed on breeders, he added.

- Bernama