Harga Ayam - Kawalan Harga Is Back. RM9.40 Per Kg. Here Is What Will Happen.

 

• Cabinet agreed ceiling price RM9.40 per kilo in Peninsular
• eggs RM0.45 Grade A, RM0.43 Grade B, RM0.41 Grade C in Peninsular
• ceiling prices will come into effect on July 1
• chicken could soar up to RM12.50 per kg once prices floated
• Sabri on June 24 said govt would retain ceiling price for chickens

My Comments :

Ok this is what will happen. In fact these things happened already.

This is a flip flop. The other day they said there will be no more price controls on chicken come July 1st 2022.

Now they have flip flopped and the price of chicken is fixed again. It is still a price controlled item. From July 1st the new price for standard chicken will be RM9.40 per kg.

Strangely Sabah and Sarawak are not mentioned. According to Zaharin Abu Yassin's latest video (today) the price of chicken in Sabah already exceeds RM12 per kg.  

First of all even when the price of chicken was at RM8.90 per kg (today's price) this price was available usually at the large supermarkets and hypermarkets like Mydin. The hypermarkets usually toe the line on price controlled items.

In other places like the pasar and the smaller mini-markets and sundry shops selling chicken they were already selling above RM8.90 per kg. At more than RM10.00 per kg. The housewives will know this better.

The hypermarkets are maybe more afraid of being caught selling above the controlled price and suffer being fined.

But there is another price to pay. The hypermarkets always do not have enough supply of chicken. Because the chicken suppliers prefer to sell at a better price to the pasars and sundry shops which sell the chicken at a higher price. 

Why does all this happen? Obviously because the cost to produce one kilo of chicken has gone up. RM8.90 ceiling price was obviously not enough.

Now the government has increased the ceiling price to RM9.40 per kilo. Will this solve the problem? I dont think so because the Minister has already said that without price controls the price of chicken will be RM12.50 per kg.

In other words even the new price of RM9.50 per kg (starting July 1st) will not solve the problem.

The hypermarkets will still not get enough chicken from their suppliers. Because the chicken suppliers will prefer to sell to the pasars and other chicken retailers who sell above the ceiling price.

Of course the government can enforce a more serious crackdown and go after all the chicken sellers who sell above the ceiling price. I wish you good luck.

More chicken sellers will be forced to stick to the ceiling price. But what will happen is that the chicken suppliers will also reduce or stop supplying chicken to them.

Because the main critical factor is even at RM9.40 per kg, is this price enough to cover the cost to produce one kg of chicken?

According to the Minister the answer is NO. Because according to the Minister, without price controls, the price should hit RM12.50 per kg.

So there will be turmoil in the supply of chicken for some time to come.

And dont forget, this flip flop only applies for chicken prices. Chicken price is back to price control.

But price controls on cooking oil have also been lifted. And there is no flip flop on cooking oil prices. Come July 1st, the price of cooking oil will be according to the market.  Prices will go up.

Lets see what happens on July 1st.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.