Logistics hurdle for food suppliers under MCO


Ragananthini Vethasalam Bernard Saw

Shoppers buying groceries at the Chow Kit market in Kuala Lumpur this morning. Under the MCO, food providers are considered essential and allowed to operate. – The Malaysian Insight pic by Hasnoor Hussain, March 27, 2020.

DESPITE assurances from ministries that the food-supply chain will not be broken during the movement-control order (MCO), suppliers are facing problems getting goods delivered in a timely manner.

Based on accounts related to The Malaysian Insight, one problem appears to be a lack of coordination between ministries and those enforcing the MCO, aimed at stopping the spread of Covid-19, on the ground.

Another is a lack of clarity and consistency on what documents are required, and from which ministry, for food suppliers and transporters to move their goods.

Given the runaround

Federation of Livestock Farmers’ Association adviser Jeffrey Ng said there have been instances of lorries transporting livestock being stopped by enforcement personnel despite officers being shown letters from the Agriculture and Food Industries Ministry (Mafi).

“Our chicken truck was stopped because they said our document wasn’t verified by the proper authorities. We were told that we had to work with the relevant departments and come up with a certification or letter.”

The officers said farmers must get approval from the International Trade and Industry Ministry (Miti), which, in turn, asked for their manufacturing licence, he added.

“We do not have a manufacturing licence, we only have a farm permit.

“The second problem we faced was that Miti asked us to reduce our employees by half.”

This requirement left livestock rearers in a dilemma, as farms are already short-handed as it is, he said.

Unlike manufacturing, said Ng, farm workers live on farms, which are located in isolated places.

“Nobody moves around (outside) except for managers and supervisors.”

People getting their temperature checked before they are allowed to enter the Chow Kit market in Kuala Lumpur today. – The Malaysian Insight pic by Hasnoor Hussain, March 27, 2020.

Ng’s red-tape nightmare continued when his application to Miti was rejected. He then turned to Mafi.

“I told them that if you ask me to stop (producing), I will stop, but you’ve asked us to ensure a continuous supply of essential items.

“Only then did Mafi issue a letter asking all of us to operate as usual.”

He said livestock farmers are engaging the Veterinary Services Department to get documents verified and convince enforcement personnel that they are genuine businesses.

He reiterated that halving the workforce in the food industry is difficult, and not to mention inconsistent with the instruction to ensure sufficient supply.

“How can you halve manpower at farms or slaughterhouses? If on a normal day, you slaughter 10,000 chickens, it would become 5,000 if halved.”

Wasted seafood

Malaysia Fish Industry General Association chairman Chia Tian Hee said fishermen have problems transporting their catch to markets as ice factories are not operating.

Also, seafood-processing companies running on limited manpower are unable to go through all the stock they receive. This has caused some firms to throw away excess stock.

Up to 70% of fishermen are still going out to sea, but some have been unable to find buyers for their catch, said Chia.

A baker, who declined to be named, said he now delivers his baked goods himself as trucks from the restaurants and cafeterias he usually supplies have stopped picking up the items.

Hospitals are also among his clients, he said, adding that he had a list of 10 places to deliver to daily before the MCO came into force.

Now, he is supplying only two or three clients a day.

Federation of Sundry Goods Merchants’ Associations of Malaysia president Hong Chee Meng said logistics companies have slashed their manpower by 50%, forcing sundry shops to wait longer to replenish their stock.

He said there have been no issues on the manufacturing side, but the gap between high consumer demand and the deliveries that can be carried out has caused a longer wait time. – March 27, 2020.


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