CHICKEN breeders have said they hope the government will allow a free float of chicken prices from the previous set ceiling of RM8.90, following its decision to end the subsidy of RM0.60/kg, which started on February 5.

Ayam Bismi Empire Sdn Bhd (Ayam Bismi) director Mazlina Kamaruddin said the termination of subsidies was expected, as it was supposed to be provided until this month according to the initial announcement by the Agriculture and Food Industry Ministry.

“We as breeders do not hope that the government will provide subsidies throughout our entire business.

“I hope that when subsidies are no longer provided, the price of chicken can be floated. With the end of subsidies, price controls should also end as well,” she said, adding that if steps to end the subsidy are coupled with the floating of chicken prices, then supply and demand will determine prices.

She also agreed with the government’s decision to channel the subsidy directly to Malaysians in need of assistance and hoped that it will be channelled back to chicken breeders through sales, adding that such a measure acted as a stimulus for those in need in terms of buying daily necessities.

Mazlina also said that statements about many breeders not claiming subsidies were not accurate.

“Breeders who are selling at a retail price of RM8.90, and live chickens at RM6.05, are selling below cost price. Naturally, breeders will claim and apply for the subsidy.

“Our partners throughout Malaysia have made their subsidy claims but these have been sent to the district office and then the state office before being forwarded to Putrajaya. We do not know where’s the missing link,” she said.

Meanwhile, the Selangor Chicken Breeders Association chairman Idrus Zainal Abidin said the rise in chicken coop materials, combined with various taxes are a challenge for him at a time when supply is an issue.

“Two years ago, I made my coops with a capacity of 80,000 birds with only RM1.6 million, but just accounting for the rise in steel prices, it’s already RM2 million now.

“I am building two more coops measuring (21.3 x 12.2m), and the price goes up by RM2 million.

“We have to pay so much, and it’s exorbitant and not justifiable,” he said.

It was almost impossible for him to build more coops as there were many conditions and taxes imposed on breeders, he added. – Bernama, June 3, 2022.