ISSUE IN MALAYSIA regarding proposal to remove price controls on chicken and eggs to bolster food security are implemented successfully. The price controls on chicken and eggs in Malaysia are being lifted with the aim of ensuring sufficient supplies. Recently in Kuala Lumpur Prime Minister on Friday announced the lifting of price controls on chicken and eggs, and increased funding for the agricultural industry in an effort to boost food security. Reported that since February 2022, the government has spent RM3.8 billion (USD$1.1 billion) on chicken and egg subsidies. The original intent of the temporary subsidies was to control the prices of chicken and eggs that surged, as well as to overcome shortages. Current trends show that the prices of chicken and eggs are starting to stabilise and are below ceiling prices. Thus, prices will be floated so that the local market can function freely in ensuring a sufficient supply of chicken and eggs in the market. Actully Malaysia was hit by supply shortages and price hikes for key food items such as chicken, eggs, rice and cooking oil that started in early 2022, partly due to the Ukraine war that interrupted global shipments of wheat and corn both ingredients of chicken feed. Economists and industry players had urged the Malaysian government to remove the subsidies for chicken and eggs and allow market forces to determine prices, which will ensure sufficient supply. If the price is fixed and is below production costs, production will be reduced, leading to a shortage as reported by NST and Bernama. But still, some are worried that removing price controls could lift prices beyond what a normal household can afford, with chicken and eggs typically being the cheapest protein available. In this blog "Anim Agriculture Technology" I rewrite a current issue about chicken and egg situation in Malaysia as reported by local media.
Accordint to a 53-year-old housewife who wanted to be known only as Lena said and then what are we supposed to eat? Fish and beef are already expensive in Malaysia. Goverment spokesman said the details of the scrapping of price controls on poultry and eggs will be announced by the Agriculture and Food Security Ministry in two weeks. In other moves to bolster food security, Mr Anwar said the government is set to spend RM2.6 billion on subsidies and incentives to support farmers and fishermen, an increase of RM600 million from 2023. The government will dish out RM3 billion to modernise the irrigation infrastructure and improve padi production to be less reliant on rice imports. The authorities are also looking into increasing rice production to five seasons within two years in several states, including Perak, Perlis and Kedah. Malaysia’s current padi output is based on two seasons a year or four times within two years meeting just 70 per cent of domestic consumption. The government spends more than RM1 billion a year to import over one million tonnes of rice to make up for the shortfall. A total of RM50 million will also be allocated to supply 50,000 rice farmers with bio- and organic fertiliser to enhance soil fertility. Another RM400 million will be allocated for a food security programme that will focus on increasing the production of local food crops. It remains to be seen if the measures announced by the Premier will prove to be effective. Talking about technology is also crucial and will be the barrier that needs to be overcome if the agenda is to be more successful. The technology needed includes research on soil, seeds and agro-engineering. It also requires skilled people, he pointed out.
In other report stated that 'Egg-ache and other pains' that was reported in Vovember 2002. A words 'Now you see them, now you don't' that occur in Malaysia appears to be facing a food crisis of sorts. It is a story of dwindling supply of eggs, chicken and cooking oil. The situation is bad enough for empty egg crates to be turned into backdrops for politicians on the campaign trail. We won't be surprised if chicken and cooking oil join the list. But the threat of the list growing to include other foods can't be ruled out. Start with the shortage of eggs. Like many in Malaysia, egg-ache is a pain that has been searching for a cure for the longest time. Our point is this: the people who are supposed to cure this have had all the time to look for a long-term solution. But they are more than happy to be on a moment-to-moment mode. So we have an inflation task force, but not a food security task force. Anyway, what can a task force do?. Start with eggs. It has an old backstory. A dozen years ago, there were 374 layer farms that produced about eight million eggs per day. In the last three years, increasing cost of production due to Covid-19 and other factors have left us with approximately 300 layer farms. Farmers were telling the government that their business wasn't sustainable without subsidies. Early this year in 2002 the layer farms told the government that it cost them 43 sen to produce an egg. Yet the government imposed a ceiling price of 37 sen, with 3 sen per egg as subsidy. Not wanting to lose 3 sen for every egg they produced, the farmers began slaughtering the chicken early. Early this month, the caretaker government relented and upped the subsidy to 10 sen. But subsidies aren't going to make the problem go away. We need a long-term solution. The farmers are pressing for the government to deregulate the egg prices. This has its own danger. Consumers will be at the mercy of profiteering producers. Expect eggs to no longer be the cheapest protein should the government agree to float the prices of eggs. Layer farms, too, may have to seriously think about their current business model and perhaps there is a solution there. For the government, there is one long-term solution to consider. Chicken feed maize and soya bean meal is costly because much of it is imported. The government should step in to help grow an alternative chicken feed industry. Oil palm kernel waste meal is a good start. At the moment, palm kernel cakes are being exported to European cattle farmers. In May 2002 reported that the Plantation Industries and Commodities Ministry said it would urgently consider making them available to the local poultry industry. It has been almost six months now and the industry is still waiting for the palm kernel cakes to head its way. Perhaps "urgently" means different things to different people. The price of chicken, too, is becoming unaffordable to many even at a ceiling price of RM9.40 a kg. The backstory is the same as the one for eggs: chicken feed. Solve this and you solve the chicken and egg problem. But that still leaves us with the here-today-gone-tomorrow cooking oil problem. Thanks... M Anem,
Seenior Agronmomist Expert,
Putrajaya,
Malaysia.
(July, 2004).
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