Thinking out of the box beyond price control measures — Amanda Yeo and Rosihan Addin Diagram 1: Domestic Market of Chicken

JUNE 8 — The rising costs of imported chicken feed ingredients such as grain corn, soybean and crude palm oil have led to rising broiler chicken prices in Malaysia during the past few months. With prices seemingly close to spiralling out of control, the government introduced numerous measures early this year to balance the expectations between chicken breeders, chicken sellers and consumers.

Therefore, the recent decision from the current administration to extend the maximum price scheme till June 30 means that chicken sellers have to sell chickens at the fixed price set by the government for around five months. If government extends the price control mechanism beyond June, more chicken breeders will either close their farms forever or breed fewer chickens to break even or avoid accumulated losses.

With the increasing costs of chicken feed, among other things, some sellers are buying chicken from breeders at RM9.40 per kg. With the price ceiling set below the cost , most chicken sellers are in danger of losing out.A chicken seller at Pasar Seri Setia, Robaiyah Amir, revealed tothat she had to sell chicken higher than the pre-determined ceiling price — at RM11.50 per kg. Nevertheless, she could not earn extra profit due to high operational costs.

As of February 2021, the price ceilings for pork kasim, pork liempo and whole dressed chicken were at P270 per kg, P300 per kg and P160 per kg, respectively. Although Malaysia lifted the pork export ban measure in 2015, it took another two years for Singapore to accept the import of live pigs from Sarawak in 2017.

1. Explore alternatives to producing chicken feed ingredients locally by applying less fibrous de-shelled palm kernel cake and black soldier fly larvae. According to UPM, the 62 x 12-meter closed poultry house that can hold about 7,500 broiler chickens could cost RM750,000 to construct. The structure consists of four air filters and six large fans that control air flow, temperature and odour as well as netting to prevent flies from entering the house.

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