Domestic shortage of chicken in Malaysia eases but prices still rising

The Malaysian government's move to stabilise the supply of chicken has eased the domestic shortage, but has not spelt an end to consumers' woes as prices continue their spike.

Chicken rice seller Nasruna Rahmat, 47, said she is paying RM2 (63 Singapore cents) more per kg now than in April when she paid RM8.10 per kg.

"Yes, supply is back to normal, but the bulk price has gone up to RM10.10 per kg now," she told The Straits Times. "We have no choice but to readjust our price to RM6.50 per serving. It was previously RM6. We received so much flak for this but we don't have a choice."

Earlier this month, the government announced it would stockpile whole chickens as a short-term measure to tackle food supply shortages and price hikes.

The first shipment of 21 tonnes of chicken arrived on Saturday, while the next batch is set to arrive today.

Malaysia requires a daily supply of almost 3,800 tonnes of chicken.

Imported livestock feed - whose prices have increased by some 70 per cent since the war in Ukraine started - is the main factor driving up local chicken production costs, especially with the heavily weakened ringgit. This led to some farmers stopping production in the past months, impacting supply which, in turn, drove chicken prices up.

The government said it will simplify import procedures on four commodities - soya bean, wheat, corn and livestock feed - by deferring permit fees and creating a priority lane for these goods until the supply and price of chicken return to normal.

The authorities will expedite the processing of applications for import licences for livestock feed, by providing interim approvals from July 1 - cutting down a 30-to 90-day process to seven days. This move is expected to benefit 380 importers of livestock feed.

The chicken-breeding industry will also be given a special exemption to hire foreign workers amid a labour shortage, to help them scale up production.

While creating a stockpile may help ensure a steady supply of chicken, some hawkers believe they would still have to pay a "ridiculous amount" for chicken.

Ms Nasruna, who runs a stall at a highway rest stop in Seremban selling cooked dishes served with rice and chicken rice, said she has been warned by her supplier that chicken prices will continue to increase due to import costs.

"A lot of businesses had to close down when the price hiked up too much, so suppliers lost out, too. This creates a great impact on small business operators like me who rely on these suppliers," she said.

Malaysia's chicken supply first started shrinking in February, forcing the government to impose an export ban on whole chickens this month, until production and prices stabilise. As domestic supply showed signs of improvement, the ban was partially lifted on June 14, with Singapore poultry producers and importers allowed to bring in live kampung chickens from across the Causeway.

However, the fluctuation in prices has left many industry players out of business and consumers in a dilemma.

Hawker Asmidar Ilyas said: "I'm very glad that we (sellers) no longer have to deal with shortages; we no longer have to close our shops because we have no chicken to serve to our customers.

"But the import costs borne by our suppliers have resulted in the prices being very unstable. I don't know if I should feel glad because either way, it seems like we're still losing."

Housewife Jocelin Lim said: "These days, I don't really buy chicken since it's too expensive, so my family is adding more protein into our diet from other sources like tempeh, tofu and chickpeas.

"Still not cheap, but it helps with our grocery budget."