RM1.30 profit margin for chicken wholesalers, retailers

 

The ceiling price for chicken is RM9.40 per kg.

PETALING JAYA: Wholesalers make a profit of RM1.30 per kg on the price of chicken, while retailers make RM1.25 per kg, according to the statistics department.

Chief statistician Uzir Mahidin said the average production cost of chicken and egg at poultry farms in Malaysia was RM6.53 per kg and 48 sen, respectively, for the month of September.

“Assuming a profit margin of 5% to 20% from the production cost of chicken, the farm price of chicken can be between RM6.86 to RM7.84 per kg,” he said in a statement.

“Meanwhile, the profit margin of chicken at the wholesale level was recorded at RM1.30 per kg, while the profit margin of chicken at the retail level was at RM1.25 per kg.”

For eggs, assuming a profit margin of 5% to 20% from the production cost, the farm price can be between RM0.50 and RM0.58 per egg, while the profit margin at the wholesale and retail levels was recorded at RM0.04 and RM0.02 per egg, he said.

Uzir said the Special Study on Production Cost of Chicken and Egg 2022 showed that the largest expenditure for farmers in chicken production was for poultry feed.

He said the chicken broilers incurred 98.6% of direct cost and 1.4% of indirect cost in chicken production.

Direct costs include feed, day-old chicks, utilities, salaries, vitamins or vaccine, and coop-related costs, while indirect cost refers to fees and taxes, insurance, and other costs.

“Among the largest components in production cost for chicken broilers were poultry feed (65.1%) and purchasing cost of day-old chick (16%),” he said.

“The composition of production cost for chicken eggs was 96.9% of direct cost and 3.1% of indirect cost. About 76.2% of the costs were for poultry feed while 15.8% to cover utilities and wages.”

Last month, former anti-inflation task force chairman Annuar Musa was reported to have said that the average cost of producing an egg stood at 51 sen.

No figure was given for the production cost of chicken broilers, but the statistics department said costs have gone up due to the prolonged effects of the pandemic as well as high demand and low supply of feed.

Since October, the ceiling price of chicken had been set at RM9.40 per kg, while super chicken is priced at RM10.40 per kg.

The ceiling price of retail chicken eggs for Grade A is set at 45 sen, Grade B (43 sen) and Grade C (41 sen) in Peninsular Malaysia. In Langkawi, Sabah, Sarawak and Labuan, the ceiling price of chicken and eggs differ according to zones and districts. - FMT