Chicken prices to stabilise soon
31 October 2023
By Nabalu News Journalist
KUALA LUMPUR: The government will utilise the savings of RM100 million per month obtained from the termination of chicken subsidies and price controls to enhance various socio-economic initiatives and welfare programs for the people, including cash assistance
This was explained by the Ministry of Agriculture and Food Security (KPKM) through a press release addressing frequently asked questions about the termination of chicken subsidies.
According to KPKM, the savings can also be used to strengthen the poultry farming industry through incentives such as revolving funds for small and medium-sized farmers, micro-credit schemes as working capital assistance for community farmers, and the transformation program from open chicken farms to closed chicken farms.
KPKM stated that the bulk termination of chicken subsidies is aimed at reducing subsidy leakage that is also enjoyed by foreigners and high-income groups.
Meanwhile, KPKM mentioned that for now, the government has decided to continue subsidising and controlling egg prices to avoid burdening the people, and this policy will be reviewed when egg supplies and production costs stabilise completely.
Regarding chicken prices after the subsidy termination on November 1, KPKM mentioned that the retail price per kilogramme of chicken in rural areas is expected to be around RM10.40, while the price in hypermarkets or large supermarkets is not expected to exceed RM9.40 per kilogram.
"Although the government has previously set the maximum selling price of chicken at RM9.40 per kilogramme, retailers at the retail level have imposed cutting charges ranging from RM1 to RM2 per kilogramme, resulting in a purchase price of RM10.40 per kilogram," according to KPKM.
To assist consumers in rural areas, KPKM stated that the government will organise Agro Madani and Rahmah Sales nationwide, where the selling price of chicken will remain competitive and not burden the people.
KPKM also explained that if there is a sudden increase due to supply shortages, the government is prepared to import chicken from foreign sources to meet domestic demand.
"However, if there is a sudden increase, the government can impose price controls with or without subsidies," according to KPKM.
Additionally, KPKM also provided information on the price difference between standard and premium chicken after the floating price mechanism, as well as the price of chicken in Sabah, Sarawak, and Labuan after the floating mechanism.
"When the floating mechanism is implemented, prices in these regions are expected to experience some alignment at the producer, wholesale, and retail levels. However, the prices are expected to remain stable if the supply of this commodity is sufficient and there are no disruptions at the production level," the ministry stated.