Make details public before floating chicken, egg prices

 

Cartels, power, and big money may sound sexy in action movies, but not in our eggs and poultry industry. Instead, they signal the control of production resources that take a whack at independent and contract farmers to artificially create shortages in order to increase prices.

While the prices of chicken and eggs are expected to be floated after June as part of the government’s efforts to overcome food shortage, this initiative must be transparent. 

Given that eight firms control 65 percent of production, how will the Agriculture and Food Security Ministry ensure chicken and egg prices remain affordable to the B60 while also meeting self-sufficiency needs?

As this dominance is alarming, the Malaysia Competition Commission should release its findings on cartel activities in the industry before the float is introduced, especially since the findings have been pending for too long now. 

Given these concerns, shouldn’t the ministry make public its cost-benefit analysis to justify a float system as the best alternative for the country and explain how it works?

Also, how would it protect the interests of independent and contract farmers who are vulnerable at this time given the control by the cartel? 

We welcome minister Mohamad Sabu’s idea of grain and corn cultivation, which the Selangor and Negeri Sembilan governments have started as 75 percent of chicken production cost is the feed. But the ministry must also explore other alternatives such as palm kernel cake or black soldier fly larvae as an alternative feed source to reduce the cost of production. 

As people say, the devil is in the details. The shortage of chicken and eggs plus erratic prices have been hard on people who are already burdened by job and income losses, especially following the Covid-19 pandemic. 

As such, transparency is key and the responsibility is on the government to make all information public. - Mkini

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CHARLES SANTIAGO is former Klang MP.

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.