What is driving the 80 per cent rise in whole chicken imports?

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Government Policy Changes Facilitated Increased Whole Chicken Imports

The 80 per cent surge in whole chicken imports during June, reaching 471 metric tonnes compared to 258 metric tonnes in May, was primarily driven by the abolishment of approved permits (AP) and the suspension of permit fees for various food items. These policy shifts, implemented in June, significantly streamlined the import process, allowing for a greater volume of whole chickens to enter the country.
Abolishment of Approved Permits and Suspension of Fees

A key factor contributing to the increase in whole chicken imports was the government's decision to abolish approved permits (APs) for chicken. This move, announced by the Prime Minister, removed a previous requirement that likely constrained import volumes. Subsequently, on June 21, the suspension of permit fees for whole chicken, alongside other essential feed ingredients like corn, soy, and wheat, further reduced the financial and administrative barriers for importers.
Simplified Importation Procedures by MAQIS

The Malaysian Quarantine and Inspection Services (MAQIS) played a crucial role in expediting the inflow of whole chickens by simplifying the overall food importation procedure. This simplification, coupled with a 24-hour quick entry process at all entry points, has demonstrably reduced logistical costs and processing times for importers, making it more efficient to bring in larger quantities of the commodity.
Cessation of Domestic Chicken Exports

The government's decision to cease domestic chicken exports, which amounted to approximately 3.6 million birds monthly, also began on June 1. This measure aimed to secure local supply and, in conjunction with the eased import regulations, created an environment conducive to increased imports to meet domestic demand.
Stable Domestic Supply and Market Forces

The Minister of Agriculture and Food Industry indicated that the domestic chicken supply is stable. While the ceiling price of RM9.40 per kilogramme in Peninsular Malaysia is influenced by market forces and input costs, particularly for livestock feed which is heavily reliant on international grain prices, the policy changes have evidently supported an influx of imported whole chickens. The government's initiatives, including the expedited import process for 490 grain and livestock feed consignments totalling 173,000 metric tonnes, underscore a strategy to manage and stabilise the availability of essential food items.

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What is driving the 80 per cent rise in whole chicken imports?

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