Exports of up to 3.6 million chickens will be stopped from June 1 until chicken prices and production stabilise said Prime Minister Datuk Seri Ismail Sabri Yaakob during the emergency Cabinet meeting held to discuss issues relating to rising food prices in the country.
The approach was agreed upon by the Cabinet as a short-term measure for the ongoing chicken shortage issue.
To mitigate the shortage, the government had also agreed to create a national chicken buffer stock and to optimise cold room storage facilities currently owned by the Ministry of Agriculture and Food Industry (MAFI) and its agencies. Additionally, all Approved Permit (AP) for chicken, including whole chicken and chicken parts will be abolished said the Prime Minister. This was to allow importers to provide more sources of supply and simplify the subsidy claim process by poultry producers.
On reports of cartels controlling chicken stock and prices, the government will leave it to the Malaysian Competition Commission to investigate and expects the probe to be completed in June.
The prime minister said the government, at the same time, will reduce the role middlemen who manipulate supply and prices, adding that it will also re-introduce ‘the war against middlemen’ campaign that was initially carried out in 2014 with the National Farmers Organisation (NAFAS) to take the lead role.
On views by the Cabihet for the cultivation of corn and the use of palm kernel cake (PKC) as chicken feed alternatives, Ismail Sabri said MAFI and the Domestic Trade and Consumer Affairs Ministry have been asked to present plans on the proposal. He said government-linked companies (GLCs), government agencies, farmers’ organisations and cooperatives were also encouraged to be involved in poultry farming, adding that the government would study the types of assistance that can be provided.
The prime minister said the government regrets and was disappointed with the actions of some companies who halted chicken production, which in turn resulted in a shortage of supply and price hikes.
He said currently, the ceiling price of standard chicken was set at RM8.90 per kilogramme with a subsidy of RM729.43 million provided under the Keluarga Malaysia Price Control Scheme (SKHKM) and implemented since Feb 5.
“However, the government found that there are several large companies who are not interested in applying for the subsidies and want the government to allow chicken prices to be determined by the market. So far, only RM50 million in subsidies have been paid to breeders, most of whom own small companies,” he said.
Ismail Sabri said legal action can be taken on this, and Attorney-General Tan Sri Idrus Harun was also part of the Cabinet meeting today where he advised the government to apply the Control of Supplies Act 1961 (Act 122) if there were elements of hoarding, storing or sabotage on chicken supplies, adding that their licence can also be revoked immediately.
