Malaysia to stop exporting 3.6 million chickens a month

Malaysia will stop the export of 3.6 million whole chickens a month until production and prices stabilise, Prime Minister Ismail Sabri Yaakob said yesterday.

This will start on June 1.

More overseas abattoirs will also be recognised to boost the country's chicken supply, and the need for import permits for poultry will be scrapped.

"The government views seriously the issue of the chicken supply and rising prices that are affecting the people," Datuk Seri Ismail said in a statement.

The moves come as the country faces a shortage of chickens along with soaring prices.

Malaysia exported more than 49 million live chickens in 2020, and 42.3 tonnes of chicken and duck meat, the Ministry of Agriculture and Food Industries' Department of Veterinary Services data showed.

Singapore imported almost 73,000 tonnes of chicken last year - more than a third of its chicken supply - from Malaysia. Chicken is the most widely consumed meat in Singapore, with a per capita consumption of 36kg in 2020, according to Singapore Food Agency data.

Mr Ismail said buffer stocks will be kept in cold storage facilities while the process to claim subsidies by breeders will be simplified.

The government is aware of reports that cartels are controlling the prices and production of chicken, he said.

The Malaysia Competition Commission is investigating the matter and the probe is expected to be completed by next month.

The government has fixed a retail ceiling price for chicken of RM8.90 (S$2.80) a kg, and is giving poultry farmers a subsidy of 60 sen a kg from Feb 5 to June 4. However, only RM50 million of subsidies out of the RM729.43 million due have been paid out to breeders so far.

Mr Ismail said: "Several large companies are not interested in applying for the subsidies and want the government to allow the price of chicken to be determined by the market."

The government's weekly Cabinet meeting, which usually takes place on Wednesday, was pushed forward to yesterday to discuss the poultry shortage that has caused chicken prices to soar.

Wholesale prices have reportedly risen to about RM13 a kg at markets in the Klang Valley, while some stalls are said to have closed owing to of a lack of supply.

According to reports, poultry farmers have halted output because of a delay in government subsidy payouts.

The Federation of Livestock Farmers' Associations of Malaysia has denied that breeders are deliberately holding back supply.

A livestock farm in Melaka was said to have issued a notice that supplies would cease this past weekend because the chickens were not gaining weight.

Poultry farmers have warned the government that sustained low ceiling prices for chicken and eggs would hurt the industry in the long run. They also said they are struggling amid the skyrocketing cost of feed due to the ongoing war between Ukraine and Russia, which has throttled grain supplies from both countries.

Russia is also a major producer of fertiliser needed to grow the grain.

Meanwhile, a targeted oil subsidy for lower-income groups is being considered as rising crude oil prices push the subsidy bill higher. International Trade and Industry Minister Azmin Ali said this was necessary after an increase in the fuel subsidy projection for this year to RM28 billion, from RM11 billion last year.