Will chicken prices be floated now that subsidies have ended?

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Chicken Prices May Be Allowed to Float Following Subsidy Expiry

Chicken breeders are hoping for the government to permit a free float of chicken prices now that the subsidy of RM8.90 per kilogramme has concluded. This subsidy was provided to breeders from February 5 and was originally slated to end this month, as indicated by the Ministry of Agriculture and Food Industries.
Breeders Seek End to Price Controls

The termination of government subsidies is seen as an expected development by breeders, with the Agriculture and Food Industries Ministry having initially announced its provision until the current month. Ayam Bismi Empire Sdn Bhd director Mazlina Kamaruddin articulated that breeders do not anticipate perpetual subsidies and instead hope for the price of chicken to be floated once subsidies are removed. She suggested that the end of subsidies should coincide with the end of price controls, allowing market forces of supply and demand to dictate chicken prices.
Subsidy Claims and Below-Cost Sales

Mazlina Kamaruddin clarified that claims of breeders not applying for subsidies are inaccurate. She explained that breeders selling at the retail price of RM8.90 and live chickens at RM6.05 were operating below their cost price, necessitating subsidy claims. She added that their partners across Malaysia had submitted subsidy claims, which were processed through district and state offices before reaching Putrajaya, indicating that the claims were indeed being made.
Rising Costs Pose Challenges for Breeders

Challenges for chicken breeders have been exacerbated by increased expenses, as highlighted by Selangor Chicken Breeders Association chairman Idrus Zainal Abidin. He pointed to the rising costs of chicken coop materials and various taxes as significant hurdles. For instance, the cost of constructing chicken coops has escalated substantially, with the price of steel alone significantly increasing the overall expense for building facilities.

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Will chicken prices be floated now that subsidies have ended?

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