FARMERS have pledged not to sharply raise the prices of chicken and eggs once the prices are allowed to float. 

This follows Prime Minister Anwar Ibrahim’s announcement that, in response to the affordable prices, the government will lift price controls on these staple items to ensure adequate supply. Chicken and egg prices are currently sold below the ceiling rate, with subsidies for both items in place since last year.

Federation of Livestock Farmers’ Associations of Malaysia adviser Jeffrey Ng was supportive of the government’s decision. 

“At the time the price controls were introduced, the prices of the two items were below the costs of production, which put the industry in a quandary,” Ng said.

“Yes, the government provided subsidies but they were disbursed too slowly.”

At the same time, however, Ng and other producers are concerned about how consumers will react to the move.

Price controls have been in place for a considerable period, creating the skewed perception that the prices are the “right” prices, he said.

Ng said he anticipates a backlash and has advised his members to prepare for a dip in demand.

“We are genuinely concerned that consumption might drop. So while we might be elated over the move, we could also be facing losses.”

Because of this possibility, Ng said he believes prices will not immediately skyrocket when they are floated.

“We hope to strike a balance where producers do not incur losses and consumers are not burdened,” he said.

Federation of Sundry Goods Merchants Associations of Malaysia president Hong Chee Meng fear consumers will find the two items “more expensive” when the prices are floated

“I hope the producers will not hike the price sharply for exorbitant profits,” he said.

He said the debate on whether the prices of chicken and egg should be floated has been ongoing for a long time.

“Prime Minister Anwar has finally proposed a solution. I hope it will address the frequent chicken and egg shortages in the country because eggs are an essential daily item for most people; many industries rely on eggs.”

He said it is unreasonable for businesses to keep making losses and that balanced prices could be achieved to benefit both the seller and the buyer.

Anwar told Parliament yesterday that the prices of chicken and egg would be floated. He urged people not to worry about supply as the Agriculture and Food Security Ministry had enough stock to see them through a shortage.

In February last year, the government set aside RM3.8 billion to subsidise eggs and chicken in a bid to address the soaring prices. – October 17, 2023.