APPRECIATION FOR BROILER PRICE ADJUSTMENT FOR THE FESTIVAL SEASON BY THE GOVERNMENT

The Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) would like to express its appreciation to the Government of Malaysia through the Ministry of Domestic Trade and Consumer Affairs for reverting to the year round retail ceiling price of RM6.00 per kilogram for standard chicken during the coming festival season. Chicken has been a price controlled item since 1998 and the present ceiling price of RM6.00 per kilogram has been in force since October 2004.

The poultry producers has not been able to agree to the ceiling price being lowered to RM5.60 per kilogram for the festival season as the industry has been suffering an escalation of cost of production since the beginning of 2006. The increase in cost of production is a global phenomena caused by the historical high prices of corn, soybean, wheat and other ingredients that has caused the increase in the local compound feed price.

Despite the fact that our production cost is higher than the current ceiling price and as a response to the government’s urges, the FLFAM would like to assure consumers, especially the general public that there will be sufficient chicken supply for the current festival season at the present ceiling price, but as the cost of production has already exceeded present ceiling price and may further increase in the near future, it will be forced to seek the approval for an increase in the ceiling price from the government after the festive season. The FLFAM had in July this year submitted its memorandum to the government making request for the review of ceiling price of chicken and would like to urge the government to seriously look into it.

The industry is thankful to the Government for their understanding of our situation and we hope it will allow us to continue to play our role as a supplier of protein food at reasonable prices to the consumers by making sure of its continued viability and sustainability.