The chicken-and-egg crisis nobody's solving

 

Mechanisation is the answer, but farmers baulk at high capital investments, complex farm structures and long maturity periods. -- BERNAMA FILEPIC (For illustration purposes only)

RISING chicken and egg prices, driven by closures of problematic poultry farms, are an upshot of the old chicken-and-egg paradox.

On one hand, chicken and egg production is going great guns. On the other hand, it's plagued by fly infestations, labour shortages, rising feed costs and regulatory pressure.

Despite the incongruity, farms do meet domestic demand, but national supply is tight.

Because of these problems, seven farms, mainly in Negri Sembilan, recently closed, affecting the production of 3.7 million live chickens.

According to the Federation of Livestock Farmers' Associations of Malaysia, the affected farms were suspended and fined, though some reopened after improving operations.

Still, the industry thinks 40 to 50 per cent of small and medium-sized farms nationwide have closed or stopped production due to structural and financial crises. If chicken and egg prices have suddenly jumped beyond RM9 to RM9.50 per kg and RM13.89 to RM14.79 per tray, respectively, you'll know why.

Farms face a cause-and-effect dilemma: higher feed costs, especially from volatile global imports, and labour shortages raise production costs and stifle operations.

Because the market cap on poultry prices was removed, supply and prices remain volatile. If supply shrinks, the result is over-reliance on costlier imports. While dependence on foreign labour is still being negotiated, it creates policy contradictions.

The government urges fewer foreign workers, but farms insist they cannot harvest without the migrants.

Mechanisation is the answer, but farmers baulk at high capital investments, complex farm structures and long maturity periods.

To set aside the chicken-and-egg paradox, the government should start with a better labour supply — unrealistic quotas can't handle manure management and cleaning.

Farm operators and workers are ageing: 460,000 are 60 and above, while 327,000 are aged 46-59. To improve farm costs and profitability, consolidate the land and farms.

Allow farmers to own and combine separate parcels under a single management — creating economies of scale without transferring ownership — through rental, management fee and profit-sharing models.

After all, this principle was set out under the National Agrofood Policy 2021–2030 2.0 to resolve chronic food import issues and improve livelihoods.

To cut imported feed and fertiliser, government agricultural companies can expand domestic production instead of relying on imported raw ingredients.

Enforcement should distinguish between deliberate violations and real struggles to meet standards.

Farmers lamented that a viable farm takes years and good money: estimates go as high as RM60 million to raise birds in a closed-house system, excluding land costs.

Rather than subsidise consumers, subsidise farmers. Despite a plausible route to viability, the chicken-and-egg contradiction will still persist in policy: will pushing for higher compliance and cleaner operations end up closing farms, reducing supply and pushing prices higher?

While regulation is necessary, enforcement must be practical enough not to drive legitimate farmers out of business and threaten food security. - NST