Why did Malaysia face critical egg shortages in October and November?

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Malaysia's Egg Shortage Significantly Reduced in December 2022 Due to Imports

Malaysia's critical egg supply shortfall was drastically reduced to one million in December 2022, a significant improvement from the 157 million egg deficit in November and 118 million in October of the same year. This reduction was primarily facilitated by the government's temporary measure to allow egg imports, including a trial phase of air freighted eggs from India, to bolster domestic supply. Local egg producers faced considerable pressure due to rising imported chicken feed costs and extended price controls, which impacted their ability to operate profitably.
Reduction in Egg Shortfall Achieved Through Imports

The deficit in egg supply experienced a sharp decline by December 2022, falling to approximately one million eggs. This contrasts starkly with the figures from the preceding months, where shortages reached 118 million in October and a peak of 157 million in November. The government's strategic decision to permit the import of eggs, specifically from India, served as a crucial temporary solution to bridge this gap. A trial phase involving air cargo imports from India was also implemented in December to ensure the imported eggs met necessary standards.
Pressures on Local Egg Producers

Local egg producers faced substantial operational challenges that contributed to the supply issues. A significant factor was the sharp increase in the cost of imported chicken feed, a vital component in poultry farming. Compounding this was the prolonged implementation of price controls on eggs. These controls, which extended for an extended period, put considerable financial strain on producers, making it difficult to cover their operational expenses.
Reliance on Export Revenue to Offset Local Losses

The financial viability of local egg producers was heavily reliant on revenue generated from egg exports. The extended price controls in the domestic market led to losses for these producers. Consequently, the income from exporting eggs became essential for them to offset these domestic shortfalls. Without this export revenue, many companies risked ceasing operations due to the unsustainable financial burden imposed by the price controls.
Government Measures to Address the Situation

In response to the crisis, the Ministry of Agriculture and Food Security (MAFS) engaged in discussions with relevant ministries, including the Ministry of Domestic Trade and Cost of Living and the Ministry of Finance. These dialogues aimed to find sustainable solutions to the egg supply problem. A proposal was put forth to implement targeted subsidies for vulnerable groups before considering a complete deregulation of egg prices.

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Why did Malaysia face critical egg shortages in October and November?

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