KUALA LUMPUR – A farmers’ association has lauded the government’s move to reinstate chicken prices on float as it would foster healthy competition among traders.
Datuk Jeffrey Ng, Advisor to the Federal Livestock Farmers Association of Malaysia (FLFAM), said public concerns over increased prices were also unfounded – adding that most supermarkets are selling chicken for less than RM8 per kg after subsidies and price controls were discontinued starting today.
“Let’s not spread the perception that floating prices will lead to chicken price hikes.
“Today, we see that prices have not surged suddenly. In fact, some supermarkets are competing on prices, creating even fiercer competition. Who benefits (from this)?
“Consumers benefit from affordable and reasonable chicken prices. The government benefits as subsidies can be utilised elsewhere, and traders and businesses also profit,” he told Scoop.
Checks by Scoop earlier today revealed that chicken prices have generally decreased in supermarkets nationwide following the removal of subsidies and price control mechanisms.
Supermarket chains such as Mydin, NSK, and Lotus Malaysia have significantly lowered their prices for poultry items per kg, which were priced at RM9.40 under the subsidised rate yesterday.
On Monday, the government announced the discontinuation of chicken subsidies and price controls for meat, starting November 1, when poultry prices will be determined by market forces. The current ceiling price for chicken is RM9.40 per kg.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said that retailers would be monitored by the Domestic Trade and Cost of Living Ministry to prevent profiteering.
Subsidies for local eggs, however, will continue. He also mentioned that the government is ready to explore foreign sources for additional chicken supplies if prices surge.
Ng explained that the current market prices, after the return to the float pricing system, were an offering by farmers to appease the customers.
“While the actual costs for farmers may be higher due to price floating, farmers can offer reasonable or lower prices to consumers.
“This is a free market, and if prices were controlled, consumers wouldn’t enjoy these low prices.
“In the past, the price ceiling was set at RM9.40, with farmers receiving an RM0.80 subsidy from the government.
“Now, after floating, chicken prices are even lower than the previous ceiling. Therefore, because subsidies are no longer in place, the 80 cents and other additional costs such as high feed prices, are borne by farmers.
“So, that’s why we want all consumers to understand the current situation. They get reasonable prices, can enjoy more chicken, (and also) support farmers in making a profit and boost production,” he said.
He added that the association has consistently emphasised that when chicken prices are allowed to fluctuate, raw food prices do not necessarily experience abrupt surges.
“In early 2022, the government put chicken prices on float, and it was only controlled during festivities without any issues in that mechanism. So, why has it become an issue now?
“If there are individuals or traders who are selling at exorbitant prices or violating anti-profiteering regulations, the government should take enforcement action,” he said. – November 1, 2023