Will chicken prices exceed RM10 per kg after June 30?

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Chicken Prices Expected to Surpass RM10 per Kilogramme After June 30

The Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) anticipates that chicken prices will likely exceed RM10 per kilogramme following the conclusion of the maximum retail price scheme and the termination of subsidies for chicken breeders on June 30. This projected increase is attributed to the full cost of production being borne by breeders, which is estimated to reach over RM7 per kilogramme.
Increased Breeder Costs Due to Subsidy Termination

The cessation of government incentives, specifically the termination of subsidies to chicken breeders on June 30, will shift the entire cost burden onto the breeders. Previously, breeders received subsidies amounting to RM1.40 per kilogramme, which helped to mitigate their expenses. Without these subsidies, the total cost for breeders is projected to climb to over RM7 per kilogramme.
Rising Feed and Chick Costs

A significant factor contributing to the increased production cost is the escalating price of chicken feed. Currently, a bag of chicken feed costs approximately RM130, translating to about RM2.60 per kilogramme of feed. Given that approximately 1.7 kilogrammes of feed are required to raise one kilogramme of chicken, the feed cost alone exceeds RM4 per kilogramme of chicken. Furthermore, the cost of chicks has also risen, ranging between RM2.30 and RM2.40 per chick.
Additional Production Expenses

Beyond feed and chick costs, chicken breeders incur other substantial expenses. These include salaries for workers, the cost of vaccinations to maintain flock health, and electricity charges for farm operations. These cumulative costs contribute to the overall production expense that breeders must absorb.
Discussions for a New Pricing Structure

In light of these financial pressures, FLFAM intends to engage in discussions with the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP). The objective of these talks is to establish a new, reasonable price for chicken that takes into account the interests of both consumers and breeders. This dialogue is considered crucial to prevent opportunistic price hikes once the government support mechanisms are removed.

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Will chicken prices exceed RM10 per kg after June 30?

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