Lifting of price controls set to boost poultry farming sector, says association

KUALA LUMPUR: The government’s move to lift the subsidies and price controls on chicken effective this Wednesday (Nov 1) is set to boost the poultry farming sector and attract foreign investors.

Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) advisor Datuk Jeffrey Ng said this move would also indirectly strengthen the broiler chicken supply chain and contribute positively to the country’s food security.

"The floating of chicken prices will have a positive impact on the industry, including by attracting more investments.

"Previously, price controls resulted in reduced profit. (So) when more people invest, it means that the supply (of chicken) will be sufficient,” he told Bernama.

He also assured that the supply of chicken will be sufficient, especially following the announcement made by the Agriculture and Food Security Minister Datuk Seri Mohamad Sabu on Monday (Oct 30).

"FLFAM will continue to support the government’s efforts to ensure an adequate supply of chicken and eggs at reasonable prices for Malaysians,” he said.

In a press conference earlier today, Mohamad said the government also agreed to continue the subsidies for grade A, B and C eggs according to the existing mechanism.

He said the termination of chicken subsidies was in line with the approach of retargeting subsidies in phases implemented by the government.

Meanwhile, Mydin managing director Datuk Dr Ameer Ali Mydin said the announcement serves as a challenge for industry players not to increase chicken prices after the government fulfils their requests.

"I am confident that the industry will behave, and the government no longer needs to impose price controls,” he said.

To show appreciation and support for the Madani government’s efforts, Ameer said that Mydin’s supermarket chain will sell chicken for RM7.99 per kilogramme starting Nov 1.

"Mydin hopes that other industry players will follow suit and sell at the same price or even cheaper than us,” he said, while not ruling out the possibility that the price would remain in effect for a week, depending on the current market price.- Bernama