THE continued ban on chicken exports will have an adverse effect on local farmers because this short-term measure will harm their ability to make money from lucrative overseas markets in the long term, Bangi MP Ong Kian Ming said.

He said the decision to ban the export of chickens, which may look like a workable short-term solution, will end up hurting local chicken producers and even chicken imports.

The DAP lawmaker said that this move will decrease the level of subsidies available to farmers since they can earn more from their export sales to countries like Singapore.

“Farmers may have to pay compensation because of possible breach of contract to their overseas customers.

“Many of the countries that did import from Malaysia will be forced to look elsewhere (to markets that) will be able to offer better prices,” Ong said in a statement.

He said, according to the Federation of Livestock Farmers Association of Malaysia, 21 chicken farms producing more than 2 million eggs have closed over the past three years due to the pandemic, the shortage of labour and the increase in the cost of operations.

Ong said strategic thinking, co-ordination and planning are needed on the part of the Ministry of Agriculture and Food Industries (Mafi) to prevent further closures, especially since the cost pressures on chicken farmers continue.

Starting June 1, Malaysia stopped exporting chicken-based products in an attempt to guarantee domestic supply and stave off concerns about food security.

However, Mafi said the government has agreed to grant special permission for the export of certain chicken-based commodities, effective immediately.

The special permission is only for coloured broilers, including kampung chicken and black chicken, all chicken-based products; and day-old-chicks (DOC) parent stock, he said.

Ong said that even though this ban was eased in the middle of June, the damage to the industry had already been done.

“This impact was felt most strongly in Singapore, which imports one-third of its chicken supplies from Malaysia including almost all of its live chickens.

“Singapore importers immediately announced alternative sources from Thailand.”

He said that on June 1, the Singapore Food Agency (SFA) announced a list of new farms from Australia, Brazil and Thailand that could export to the republic.

“On June 30, the SFA announced the approval of three establishments in Indonesia to export chicken meat and chicken meat products.”

This, he said, was followed by the Indonesian ambassador to Singapore announcing that chicken farms in Batam could be established to cater to the Singapore market.

Ong added that Mafi must understand that the path to food security is more than providing. for the domestic market, it is also the ability to export.

“Instead of harming local chicken farmers by short-term policies, Mafi should be putting in place plans to help our chicken farmers expand their domestic production and access to foreign markets,” he said.

“When our chicken farmers can earn more from exporting, they would be in a better position to manage the price of chicken and eggs domestically.”

He said that some policy recommendations that Mafi can pursue are working with the industry, including members of the Federation of Livestock Farmers Association of Malaysia (FLFAM).

This, he said, could include providing soft loans through Agrobank for long term investments and expansion in this sector.

Other measures Ong suggested were:

* Working with Malaysia External Trade Development Corporation, an agency under the Ministry of International Trade and Industry.

* Expanding export market access, including for the halal markets in the Middle East.”

* Working with state governments and land-owning government linked companies (GLCs) to identify areas for new chicken farms.

* Understanding the underlying cost structure of chicken farming and making subsidies easier to claim.

* Giving assurances that blanket export bans will cease and contractual sanctity will be respected.”

Ong added that Mafi should look into utilising its agencies on how to assist the industry to increase its productivity and reduce the reliance on migrant workers.

He said options included investments in automation and IR4.0 best practices. – July 29, 2022.