Putrajaya risks crowding out small-scale chicken farmers by pushing for two government-linked cooperatives to go into poultry farming, in a bid to boost the country's food security.
When contacted, PKR's spokesperson for agriculture and commodities Sim Tze Tzin said the government may turn the chicken farming industry, which has achieved a self-sufficient level, into a red ocean.
A red ocean is a business term for a crowded marketplace with cut-throat, hence bloody, competition.
Sim, who is in contact with chicken breeders, said some of them raised concerns about losing out in the long run.
This came as Prime Minister Ismail Sabri Yaakob announced that the National Farmers Organisation (Nafas) and National Cooperative Movement of Malaysia Bhd (Angkasa) will respectively produce 144 million and 30 million chickens annually.
Nafas is targeted to supply about 20 percent of the overall country's chicken production.
Both Nafas and Angkasa will also be involved in the chicken industry ecosystem, namely broiler chicks, feeds, vaccines, coop, processing plants, cold rooms, logistics, distribution, and marketing.
Lower cost for govt-linked groups
Sim said both government-backed organisations will enjoy a lower production cost while private chicken breeders will continue to suffer from rising input costs.
"They enter into the business using public funds, getting government subsidies, and free land. Perhaps the development charges for the land are waived.
"The farmers need to pay for the quit rent and financial loan with an interest rate of eight percent which is squeezing their profit margin. They may think - why not give up as they cannot compete with the government," he added.
On another note, Sim also raised concern that the government-backed chicken farms may not be able to compete with other top players in the country.
"The industry is mature. The local farmers are very effective producers and they are not only able to meet local demand but also export about five percent of supply.
"The price of chickens has been stable and cheap in the past three decades.
"They have to be very competitive. So, Nafas and Angkasa, which (operates via) contributions from farmers and civil servants should conduct a feasibility study and understand the industry. They need proper business planning and analysis," said the Bayan Baru MP.
Take up agriculture, raise cattle
Sim advised them to raise cattle and goats as well as raise crops instead as Malaysians largely depend on imported supplies.
"Why not (get into) other agriculture industries, for instance planting vegetables as we import about 60 percent of our vegetables. This is a blue ocean with huge demands," he added.
A blue ocean is a business term referring to marketplaces untainted by competition where companies may develop an uncontested market rather than fighting over a shrinking pool.
Sim also called on politicians to stay away from Nafas, which is helmed by Zamri Yaakob, the older brother of the prime minister.
"While Zamri is technically qualified for the position, he has also secured several other government projects," he said.
This can avoid the perception of cronyism in Nafas, which received over a billion ringgit of contracts and subsidies from the government, Sim added. - Mkini
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.