Chicken exports halted from June 1 to check supply, price issues

PUTRAJAYA: Four short-term measures will be taken to resolve the issue of chicken supply and prices, including to stop chicken exports from June 1.


The Cabinet, which met on Monday (May 23), also decided to lift the requirement for Approved Permits (AP) for chicken imports, including for whole birds and parts.

The process to claim subsidies by breeders will be facilitated and the Cabinet has also agreed to increase and recognise more abattoirs overseas in order to increase chicken supply.

Announcing these initiatives, Prime Minister Datuk Seri Ismail Sabri said the export of 3.6 million birds a month will stop from June 1 until the prices and supply of chicken stabilises.

“The government’s priority is to the people,” he said in a statement on Monday (May 23).

Ismail Sabri also said the government was disappointed over action by certain chicken producers that had affected the price and supply of chicken.

He said since Feb 5, the ceiling price for standard chicken had been fixed at RM8.90 per kilo and the government had allocated RM729.43mil in subsidies.

“However, it was found that several big companies were not interested to apply for the subsidy and wanted the government to allow the price of chicken to be determined by the market,” he said.

To date, RM50mil worth of subsidies had been paid out, mostly to small companies.

Ismail Sabri said the government is aware of claims of cartels controlling the price and supply of chicken among big companies.

“The Malaysia Competition Commission is investigating the claims and is expected to complete its probe by the end of June.

“If it is true that cartels are in cohort to control the price, we will take action against them,” he said.

The Prime Minister said the role of middlemen who manipulates price and supply was addressed by the “Jihad Memerangi Orang Tengah” (War Against Middlemen) programme that was introduced in 2014. ANN

Malaysia highly exposed to global shocks in food supply chain

KUALA LUMPUR: Malaysia’s food inflation is set to stay on an upward path in the coming months amid elevated global commodity prices, domestic supply chain disruptions and depreciation of the ringgit.

MIDF Research said Malaysia, as a net food-importing country, is highly exposed to global shocks in the food supply-chain.

‘’Global food inflation remained elevated, particularly the prices of corn, grain and vegetables.

‘’Nevertheless, we opine overall inflationary pressure will remain stable as fuel inflation continues to be on a downtrend,’’ it said in an economic brief today.

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Prices of chicken dishes may go up

The research house said the deceleration of fuel inflation will outweigh the rise in food inflation assuming the government maintains the current capped fuel prices of RON95 petrol and diesel.

‘’In our thematic report ‘Oil Exports Rebound & Inflation Concerns’, we forecast that Malaysia’s headline inflation to stay below 3.0 per cent even if food inflation averaged at 5.0 per cent, while fuel prices are capped at current levels.

‘’Unless average food inflation surged to 10.0 per cent, overall inflation (is expected) to average at 4.6 per cent,’’ it said.

MIDF Research added that, in the worst case scenario, average headline inflation would rise to 8.9 per cent if the government opted to float fuel prices and food inflation averaged at 10.0 per cent. – Bernama