Higher ceiling price provide only 'slight relief' for Malaysia's poultry industry, analysts say

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may only provide"slight relief" to Malaysian poultry players, who have been battling margin compression for the past several months.

may only provide"slight relief" to Malaysian poultry players, who have been battling margin compression for the past several months.

"We believe the leeway for increase in average selling price will slightly improve the earnings for both Leong Hup International Bhd and QL Resources Bhd as the input cost seems to have moderated recently. The Cabinet decided not to float the price of chicken, a move that has brought relief to many quarters, especially consumers who are facing the brunt of inflation.

He noted that prices have been surging across the board for livestock, mainly due to increased feed price and demand recovery from the reopening of the economy. "We remain optimistic on Leong Hup and QL as the increase in poultry's ASP would provide a boost to profitability of their poultry segment. It also pointed out that the new ceiling price for chicken at RM9.40 per kg for Peninsular Malaysia is only an increase of 5.6 per cent from the previous ceiling.

 

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