MALAYSIANS can expect a shortage of chicken in the next few days as poultry farmers stop work due to a delay in government subsidies.

Chicken prices have been soaring in recent months due to the increased prices of feed and broiler chicks.

Malay daily Utusan Malaysia reported that four poultry farms in Malacca stopped supplying chicken over the weekend on the grounds of a “problem in the livestock farm”.

This cut in output is largely driven by the delay in a promised 60 sen/kg subsidy promised by the government and is expected to cost the industry RM26 million.

However, the Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) has denied that some chicken breeders in Malacca were suspending operations in protest.

Last week, Bernama reported that a livestock farm in Merlimau, Jasin, had issued a notice that supplies would cease on May 21 and 22 on the grounds that chickens were not gaining weight at the proper rate.

The Selangor Agricultural Development Corporation also denied allegations that there will be no chicken stocks at Selayang wholesale market, insisting there would be limited stocks available.

Is there really a shortage?

A check by The Malaysian Insight at the Klang wet market on Jalan Meru and Chow Kit market in Kuala Lumpur showed that there was a shortage yesterday morning, with prices soaring to RM13/kg despite a government-mandated price control in place.

The Ministry of Domestic Trade and Consumer Affairs set the wholesale price of chicken at RM6.20/kg during Deepavali.

It was subsequently reduced to RM6.10/kg during Christmas and for Chinese New Year prices came down even further to RM5.60/kg.

A whole standard chicken currently retails at RM8.90/kg, 20 sen cheaper than the RM9.10 fixed ceiling price.

This price was set by the National Council of Cost of Living and will last until June 5.

Vendors said they are unable to get the supplies they need and it is not worth selling at RM8.90/kg.

The checks also showed that several chicken stalls had closed for the day due to the shortage.

Domestic Trade and Consumer Affairs Minister Alexander Nanta Linggi said the factory told him its chickens had not reached the desired weight of 1.8kg.

Disease has also been identified as another reason for the chicken shortage, according to Sinar Harian, which quoted chairman of the Selangor Poultry Breeders Association Zainal Abidin saying this had been reported by association members.

In grocery stores in Setia Alam and Meru, fresh chicken was being sold at RM10/kg. Owners said the prices will remain until supply similarly resumes.

Meanwhile, consumers are unhappy at the high prices, especially while Hari Raya open houses are still being held.

How did we get here?

Poultry farmers have been warning the government that the continued low ceiling prices for chicken and eggs will eventually hurt the industry, which has already suffered a heavy blow from the Covid-19 lockdowns.

Poultry farmers told The Malaysian Insight that with the current ceiling price of RM5.60/kg for wholesale chicken, farmers are losing RM1 for every kg sold.

This bill comes to almost RM200 million a month, leading many poultry farmers to pivot to other businesses to make ends meet.

The ceiling price left farmers bleeding as cost of feed reached an all-time high in March due to ongoing war between Ukraine and Russia, whose vast grain-growing regions are among the world’s main breadbaskets.

The United Nations Food and Agriculture Organisation (FAO) in a report last month said world food commodity prices reached their highest levels ever as the war sent shockwaves through markets for staple grains and vegetable oils.

The FAO Food Price Index averaged 159.3 points in March, up 12.6% from February when it had already reached its highest level since its inception in 1990.

Russian and Ukraine combined, accounted for around 30% and 20% of global wheat and maize exports, respectively, over the past three years.

World wheat prices soared by 19.7% in March while maize prices posted a 19.1% month-on-month increase, hitting a record high along with those of barley.

Jeffery Ng, former adviser for the FLFAM said a bag of 50kg feed used to cost RM100 but now costs RM130 and this is expected to continue to rise.

The FLFAM said the higher cost of feed may force producers of egg-laying chickens to reduce livestock and cut costs, which will ultimately lead to a further shortage.

The association represents 15 poultry and egg farmers nationwide.

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.

According to the FLFAM, the price of broiler chicks has gone up by 30 sen.

Many farmers are as such reluctant to purchase chicks.

The cabinet had agreed to provide a subsidy of 60 sen/kg to poultry farmers to offset spiralling prices but delays are forcing poultry farmers to revolt. – May 23, 2022.