KUALA LUMPUR (Aug 4): The government has not yet decided on whether to lift the export ban on chicken, in order to ensure sufficient chicken supply locally and that prices remain below the ceiling price, said Special Task Force on Jihad Against Inflation Chairman Tan Sri Annuar Musa on Thursday.
“Currently, the export of chicken is still not allowed. And we have received feedback that there is currently an excess supply of chicken and thus, the price has started to stabilise and has even fallen below the ceiling price.
“However, the government has not made any decision to change the (existing) policy that has been set, because we want to ensure that the supply of chicken is in a stable condition and [that] the price is also at a level that remains below the ceiling price.
“Nevertheless, the Domestic Trade and Consumer Affairs Ministry will monitor the import volume, local production stock, and whether there is a need to allow for export. These will be followed up by the ministry from time to time,” he said at a press conference in Parliament on Thursday (Aug 4).
Annuar noted that the ministry also needs to ensure that the current export ban does not cause severe oversupply.
He added that the committee is of the view that chicken prices must first be stabilised, besides having the need to understand the entire chicken supply chain, including from the supply point of view.
“We mentioned earlier in the meeting that we want to determine how much the production cost is, of a chicken. The committee was informed that live chicken could be bought at a price of approximately RM4.50 per kilogramme. So, in this case, it means that the cost of chicken production is now below the subsidised price level.
“It [also] means that there is a sign that without subsidy, chicken can still be sold below the set price, if we float it. But this whole thing needs to be studied further. We don't want a flip-flop decision,” said Annuar.
He also stressed the importance of retailers being able to continue enjoying controlled chicken prices.
Earlier in the same day, Minister of Agriculture and Food Industries Datuk Seri Dr Ronald Kiandee, in a question and answer session at the Dewan Rakyat said that the move to ban chicken exports is a temporary measure to stabilise chicken prices.
“What is scheduled to end on Aug 31 is the subsidy for chicken and eggs producers that is being implemented throughout the period of the 'Skim Harga Maksimum Keluarga Malaysia' (SHMKM), starting from Feb 5 to Aug 31.
“The government will continue to monitor and hold engagement sessions with all stakeholders in the chicken supply chain, including farmers, to ensure the supply and continuity of the country's chicken production is at an optimal and stable level.
“For now, the export ban of live chickens (commercial broilers) remains. Any decision to lift the live chicken (commercial broilers) export ban will be decided by the government, based on the supply status and farm-level production,” Ronald said.
Meanwhile, Annuar said the Farmers Organisation Authority Malaysia has been given the responsibility of creating a stock buffer. The Authority aims to create a stock of approximately 4,536 metric tonnes of chicken by year-end.
“The amount is calculated at the level of approximate sufficient needs for seven days, based on the daily use of 1.8 million chickens per day.
“This is a new attempt to create a buffer stock supply, [but it] does not mean that the chicken is only kept for the purpose of being released at a specific time only
“Part of the stock will be released to the market in stages, to ensure sufficient chicken supply and no sudden spike in chicken prices,” he said.
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