DESPITE the removal of approved permits to import whole chickens, retailers are undecided about doing so and want to wait to see what happens once the ceiling price for chicken is removed on July 1.

Though it is less than two weeks away, Putrajaya has not provided much clarity as to how freely the price of chicken will be floated. The current price for standard chicken is RM8.90 per kg with the government subsidising 60 sen per kg for chicken farmers. The current maximum retail price for super chicken is RM9.90. The government has only said the subsidy will be removed. 

Retail giant Ameer Ali Mydin, who runs the chain of Mydin stores, said retailers are waiting to see what happens after July 1 instead of rushing to import whole chickens.

Retailers fear losses if the price of imported chicken ends up being higher than what they can sell for, said the Mydin managing director.

“I went to Thailand recently to check on prices and chicken supply there, and their price is more than RM10 per kg. If that is the price there, the imported price for Malaysian retailers may be RM12 or RM12.90 per kg.

“If Malaysian retailers import now, without further clarity from the government on the removal of the ceiling price after June 30, they fear making losses. Although the government said there will be no more subsidy after the end of June, it has not clarified whether this means there will also be no price control. So retailers will not dare take the risk.”

All the government has said so far about the end of the price control scheme for chickens come July 1 is to warn farmers and breeders not to raise prices “unreasonably”.

Ameer said the lack of clarity is making it difficult for businessmen to make decisions. He is also allowing for the possibility that the government may announce a new ceiling price at the last minute. 

Ameer said the reluctance to import chicken mostly pertains to whole birds, which are also in demand and facing production issues in source countries. There are less problems with chicken parts.

“Imported chicken parts are lower in price than costs for the same items as quoted by local suppliers,” he said.

While local supply of whole chickens is low, at about 30% currently, Ameer said processed items, such as chicken nuggets, are plentiful.

Popular supermarket chain NSK is also facing problems with its supply of whole chickens.

NSK Group senior advisor Lim Choon Se said it is only receiving about 40% of its usual whole chicken supply, which sells out in one morning. Chicken nuggets also sell out quickly.

As for importing whole chickens from abroad, Lim said: “Which country can we look to? News of a chicken shortage is everywhere, (including) markets in the Philippines, and supply is also tight in Thailand and Indonesia.”

Like Ameer, Lim said imported chicken will cost more than RM11 per kg. 

Lim said he will also wait until June 30 to see if there is any more clarity from the government on how the price of chicken will be affected once the subsidy is removed.

An entrepreneur in an integrated chicken farm business who requested anonymity also said the same, stressing that the lack of clear instructions from the government is keeping many in the business waiting.

Malaysia has undertaken several measures to ensure domestic chicken supply. This includes suspending the exports of live and whole chickens from June 1, abolishing approved permits for chicken imports, and pushing government-linked companies to enter chicken farming and feed production by planting grains locally. – June 20, 2022.