POULTRY farmers will be further cutting down on the production of chicken to cut back on their losses, the group said.

On top of the increase in the prices of feed and shipping since August 2020, farmers now have to contend with the increase in the price of broiler chicks.

This is expected to cause further disruption to the supply of chicken in the country.

The Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) broiler unit chairman Kwei Yew Tong said the price of broiler chicks has gone up by 30 sen.

“The new pricing will put more pressure on farmers,” Kwei told The Malaysian Insight.

“We are not against the price hike, but it must be reasonable, especially now. This is akin to rubbing salt on our wounds.”

Many farmers are reluctant to purchase chicks due to the new price as they are worried about losses, he said.

“Consumers are complaining about chicken prices but no one understands a poultry farmer’s suffering.”

The price of feed has gone up by 70% compared with that of a year ago.

One bag of feed used to cost RM80 but now it is RM120, Kwei said.

To ease the burden of poultry farmers, the cabinet has agreed to provide a subsidy of 60 sen per kg to poultry farmers.

Farmers are, however, still waiting to see how the subsidy will work, Kwei said.

FLFAM president Terry Tan is of the view that once the subsidy kicks in, farmers will have enough financial resources to meet market demand.

“The supply should improve within one or two months. It takes 35 days to raise broilers, and as long as the cost doesn’t go up, the current situation can be resolved quickly,” Tan said.

Kwei is, however, of the view that it is still too early to tell if the subsidy will help farmers.

“If the subsidy is not proportional to the losses and farmers are not able to make ends meet, it is still a problem, especially in small and medium-sized farms who are facing cash flow problems.”

Tan added that the cost of raising chickens has gone up by 50%, so farmers are more conservative.

“Once farmers reduce production, it will lead to temporary shortages, especially in rural areas in the east coast.

“The impact in towns is low because we are still able to cater to the needs. In rural areas, it will take a few days for supply to reach them.”

Tan, however, said consumers need not worry as farmers are still producing chicken.

“As long as the funding problem is solved, farmers can start production. The supply disruption is only for the short term.” – February 16, 2022.