Stable supply, stable prices to last through December

PETALING JAYA: The country’s chicken supply is projected to surpass demand this month with excess production extending to December.

According to the Veterinary Services Department (DVS), the industry is gearing up for a market adjustment to maintain price stability.

But in the likelihood of temporary and localised supply disruptions, the Agriculture and Food Security Ministry, through the Farmers’ Organisation Board (LPP), has taken measures by stockpiling imported chicken.

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Replying to queries from The Star, the DVS said this strategic reserve is intended to address any unforeseen shortages, especially during the high-demand holiday season at the end of the year.

Last year, Malaysia imported a substantial 146.4 million kg of chicken meat (cuts) from countries such as Brazil, China, Denmark, the Netherlands, and Thailand. This amounted to a total value of RM8.6bil.

Additionally, 6.77 million kg of whole chicken were imported from Brazil and Thailand, valued at RM60.3mil.

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Farms in Malaysia have produced 629.7 million chickens between January and October this year.

On Nov 1, the government lifted price controls and subsidies for chicken. Prior to this, whole chickens were priced at RM9.40 per kg.

Pudu Hawkers and Petty Traders Association chairman Lim Kin He affirmed that chicken supply had been stable this month.

“The local chicken supply is currently stable, with no shortages,” he said.

“But market demand is sluggish, leading to an average business turnover decrease of 5% to 8%,” he said.

“We anticipate that with the onset of the festive season and school holidays, there will be an upswing in the demand for chicken next month. But the price will stay the same,” he added.

Mydin managing director Datuk Ameer Ali Mydin anticipated that chicken prices would remain stable from now through December.

He said that the removal of price controls by the government, which stimulated increased production, reduced chicken prices from RM8.80 to approximately RM7.20 to RM7.50.

“Chicken prices in hypermarkets now range from RM7.40 to RM7.90, a significant decrease from the previous prices of RM10, RM10.50, or RM11,” he said.

While acknowledging the significance of lifting price controls to promote investment in the poultry industry, he suggested the government manage a “hybrid” float system in which the prices could range between RM8 and RM11.

Ameer said he believes this approach would strike a balance between industry sustainability and affordability to consumers.

In Penang, Sunshine Whole Mart Sdn Bhd marketing and communication manager Bryan Wong said with the coming festivities, the price of whole chickens may not necessarily go up.

Earlier this month, Supermarket Sunshine Square drew crowds when it sold whole chickens at just RM6.99 per kg to mark its 63rd anniversary.

Its current selling price is RM8.20 each kg.

Malaysians eat about 70.43 million chickens per month or 845.16 million birds yearly. On average, each person in the country consumes about 48kg of chicken per year.