CHICKEN breeders want the government to allow them to export their stock as poultry supply has exceeded local demand.

They said since the export ban imposed on June 1 to meet local demand, domestic supply has stabilised or even exceeded the quota.

They said the price of chickens at farms is maintained at RM6 per kg but the local market demand has not increased, and the industry is looking forward to resuming exports.

Johor Small and Medium Poultry Farmers’ Association member Lau Ka Keng said the current farm price of chickens is between RM6 and RM6.50 per kg.

He said according to the current market demand, the domestic supply of chickens is sufficient and there is also a surplus, even if the export is to be resumed now.

“Now, although the feed cost is slightly lower, the supply of chickens is stable,” he said.

“But the output has not fully recovered because there is still a shortage of foreign workers.”

Lau said he used to produce 100,000 chickens per month, but now, he can only produce 40,000 – a 60% reduction in production.

He said the cost and sales price of chickens are transparent, so there is no possibility of huge profits, not to mention that chicken is a daily necessity for consumers. 

He said the current situation is that they are not making money in the domestic market.

“Government subsidy is coming, but I haven’t received it yet in August, and I don’t know in September,” he said.

He hopes the government can approve foreign workers for chicken farms as soon as possible to alleviate the shortage of manpower.

On June 1, Malaysia stopped exporting chicken-based products to ensure sufficient domestic supply and stave off concerns about food security.

However, the Agriculture and Food Industries Ministry said the government has agreed to grant special permission to export certain chicken-based commodities, effective immediately.

Another chicken wholesaler from Muar, Tey Geok Kai, said the supply of chicken in the market is stable and sufficient, and the demand is not particularly high.

He said the farm price now is RM6 per kg and the wholesale price is about RM6.50, which does not exceed the ceiling price set by the government.

“It’s not expensive to consume chicken now, and we supply enough to our customers, but the sales volume remains average,” he said.

When the cost of chicken skyrocketed and the farm price exceeded RM9 per kg, the government set a standard net chicken ceiling price of RM8.90 per kg.

This has caused the breeders to complain, claiming that they were losing money.

On July 1, the ceiling price was raised to RM9.40 per kg, an increase of 50 sen.

No more ‘chicken scare’

An integrator of the feed mill and livestock business who declined to be named said chicks that are growing in September could be expected for export in October.

He said breeders are still waiting for the government’s announcement on when they can export their stock.

“Currently, the government has not allowed chickens to be exported. Frankly, there is a surplus of chickens,” he said.

“Now, the supply of chickens is not as bad as before. There is stock, the chickens are of sufficient weight, and some are overweight.”

He said chickens raised on his farm currently cost between RM6.60 and RM6.70 per kg, depending on the size.

He hopes that exports can resume next month because there is no more “chicken scare” in the country.

“There was a shortage earlier when feed prices skyrocketed and demand soared,” he said.

“Now consumers’ purchasing power has declined, demand has stabilised and supply has gone up.”

Pudu Hawkers and Petty Traders Association chairman Lim Kin He said chicken supply in the market has returned to normal.

He said hawkers are operating as usual and consumers can buy as much as they want.

Lim believes that even if the chickens are to be exported now, it will not affect the domestic supply.

“The wholesalers have enough chickens,” he said.

Special Task Force on Jihad Against Inflation chairman Annuar Musa has announced that the current chicken price will be maintained and the three-sen subsidy for eggs will also remain unchanged. – September 13, 2022.