THE recent fresh chicken supply shortages have caused panic among consumers, prompting the government to stop the export of fresh chicken overseas.

Industry players said the reasons for the shortfall included the role played by the middlemen and the manipulation of poultry farmers.

However, the key problems are a shortage of manpower and skyrocketing prices of feed, they added.

Johor Small and Medium Poultry Farmers’ Association member Lau Ka Keng said that the shortage was caused by a serious shortage of workers at the farms and the price of feed, due to the war in Russia.

“Farmers can’t keep up with the demand because we don’t have the workers and the price of feed has gone up 100%.

“The ceiling price for 1kg of whole chicken is RM8.90, this means farmers are losing money.”

Lau said before the Covid-19 pandemic, he was able to raise 200,000 chickens on his farm.

As the government sent migrant labour home during the movement control order, he was left with 10 employees who were able to handle 100,000 chickens, cutting his output by 50%.

This, coupled with feed prices, has put immense pressure on farmers, Lau said.

While the government promised subsidies to farmers, the ongoing price cap means farmers are bleeding money.

Lau said Malaysia’s chicken and egg production has always been above market demand at 116% and 104% respectively, but this changed in October last year when production reached 52 million, lower than market demand.

It fell again to 51.4 million before rising to 61.1 million in December last year, but this was still lower than market demand, Lau added.

Another farmer in Malacca, who wished to remain anonymous, said he has not reduced production but feed has increased in price, costing RM3 more per pack.

He said, while feed price continues to go up, the government has insisted on maintaining such a low ceiling price for chicken.

This, he said, led to many farmers to cut back on feeding so the weight of their chickens has dropped.

The depreciating ringgit against the US dollar has further exacerbated matters, he said.

“Unless suppliers are willing to owe money to the farms, we can barely stay afloat. Many farms have also chosen to close as they don’t agree with this whole situation.”

The Ministry of Domestic Trade and Consumer Affairs announced on Thursday that the ceiling price of RM8.90 for chicken would remain in place until June 30.

Subsidies not covering shortfall

Managing director of Mydin supermarket Ameer Ali Mydin said the 60 sen chicken subsidy was barely enough as it meant farmers were only making RM1 in profit for every bird they sell.

“This doesn’t include the cost of feed, labour and production, it’s not enough.

He also said supply of fresh chicken was down 30-40% but chicken nuggets were still available.

“There is still a shortage of whole chicken, but people can still buy parts,” he told The Malaysian Insight.

Lau said red tape involved in applying for the subsidy meant many farmers are still waiting to hear or have had their application rejected.

“We applied in February and still haven’t received anything,” he said.

Prime Minister Ismail Sabri Yaakob had previously said the 60 sen subsidy was costing the government RM729 million in total and that to date RM50 million had been paid out.

However, he did not elaborate on why this figure was so low.

This is the first time in 10 years poultry farmers have applied for subsidies due to the prolonged price control.

“The price control has been in place since February, at the same time we have a labour shortage and feed costs have increased, how are we supposed to carry on?”

Many have also had their subsidy request rejected over incomplete paperwork or their inability to fulfil certain requirements.

Lau said this has mainly affected smallholders and elderly farmers.

Amid complaints about subsidy delays, the Ministry Agriculture and Food Industry said in a statement that it would expedite payments to farmers and also simplify the application process.

The ministry extended the deadline for the application to June 5.

However, last week, Ismail Sabri announced that the government would be denying subsidies to poultry farmers from July 1 due to the lack of interest.

“We will not give subsidies to farmers anymore. Instead, the amount will go directly to the rakyat, who we feel need it more,” he had said. – June 7, 2022.