Livestock farmers expect chicken prices to exceed RM10 per kg next month

Livestock farmers expect chicken prices to exceed RM10 per kg next month
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MELAKA (June 17): The Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) is expecting chicken prices to exceed RM10 per kilogramme (kg) following the end of the maximum retail price scheme for chicken and the termination of subsidies to chicken breeders on June 30.

FLFAM advisor Datuk Jeffery Ng Choon Ngee said the termination of both government incentives would result in the entire cost borne by chicken breeders to reach over RM7 per kg in line with rising prices of chicken feed. Currently, the price of chicken is RM8.90 per kg and the price of fresh chicken from the farm is RM5.60 per kg but now there are still subsidies of RM1.40 per kg.

"The price of feed today is around RM130 per bag...cheapest. One kg of feed is around RM2.60. This is only feed and for around 1.7 kg of chicken, the feed cost already exceeds RM4 while chicks we buy are between RM2.30 to RM2.40,” he told reporters here today.

He added that breeders not only need to bear the cost of buying the chicks and feed, but also need to assume other costs including salary, vaccinations and electricity.

He said the federation hopes to discuss with the government, especially the Domestic Trade and Consumer Affairs Ministry (KPDNHEP) to determine the new price of chicken that would be reasonable and take into consideration the interests of Malaysians and chicken breeders in the country.

Jeffery Ng said such a discussion is important to ensure no party would take advantage of the end of both incentives by simply raising prices.

Media outlets reported on Thursday that chicken prices are expected to rise next month after the maximum retail price scheme ends this June 30.

Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi had reportedly said that the Finance Ministry was drafting the provision of assistance to those in need, which would be finalised at the end of this month.