Country’s requirement of two million chickens daily not met

Reports by MARTIN CARVALHO, ASHLEY TANG and FATIMAH ZAINAL

DESPITE companies being allowed by the government to import 10,000 metric tonnes of frozen whole chicken, only 4,500 metric tonnes were imported due to a supply shortage, says Deputy Agriculture and Food Industries Minister I Datuk Seri Ahmad Hamzah.

He said the high demand for chicken following the reopening of economic sectors such as hotels, restaurants and catering services has outstripped the supply.

Malaysia requires 2.09 million chickens per day, equivalent to 3,762 metric tonnes, or 62.9 million birds monthly, equivalent to 113,220 metric tonnes, he added.

However, according to Veterinary Services Department data, chicken production in December 2021 stood at 61.1 million compared to the 62.9 million birds that are needed, said Ahmad.

"This indicates that there is a shortage of supply in the market.

"The demand for chicken skyrocketed after the movement control order was lifted and to meet demand, producers would need more time.

For Ramadan, we expect the supply to be sufficient," said Ahmad during the question-and-answer session in the Dewan Rakyat yesterday.

The shortage of chicken is due to multiple reasons, including poultry industry players reducing their production to avoid losses incurred by increased operating costs from the rise of chicken feed prices, he said.

"The cost of animal feed accounts for 70% of the cost of production," he added.

Other factors are the rise in operating costs along the chain such as logistics and labour costs and foreign exchange rates, said Ahmad.

He also said that the flood disaster at the end of 2021 had affected the poultry industry and so had the rainy season.

To meet local demand and alleviate the burden of farmers, he said the government has implemented measures such as opening up approved permits for 36 companies to import 36,030 metric tonnes of chicken from December 2021 to May 2022.

The government also gives subsidies of 60sen per kg for chicken and five sen for an egg, benefiting 2,061 poultry industry players and 194 laying hen breeders, he said.