Friday, December 9, 2022

Price Control Is Great For Consumers, But Poultry Farmers Now Risks Shutting Down

Social NewsPrice Control Is Great For Consumers, But Poultry Farmers Now Risks Shutting...

The government has recently announced an extension of the Malaysian Family Price Control Scheme to 4 February 2022 beyond 31 Dec 2021 as originally planned.

While this is a great news for consumers in Malaysia, poultry farmers had expressed their disappointment over the extension.

In a statement yesterday (3 January), the Federation of Livestock Farmers’ Associations of Malaysia said the farmers had been heavily impacted by the previous farm price controls on the broiler and egg, to the extent where small and medium farms which have suffered huge losses.

Some even indicated that they would stop operating in the coming months as the production costs remained high.

“The rising cost of chicken and egg production is real and the industry is still suffering losses.”

“In addition, the industry is still waiting for financial assistance such as soft loans or feed cost subsidies from the government.”

“The continued loss of farmers’ income will affect the production of the cheapest source of protein in our country.” the federation said.

The federation then called for the authorities to be concerned about the country’s food security.

The Keluarga Malaysia Maximum Price Control Scheme was part of the government’s initiative to stabilise the price of necessities and ensure adequate supply in the market and it took effect on 7 December 2021 throughout the country.

The items listed under the scheme included live chicken, standard chicken, super chicken, Grade A, B and C eggs, long beans, red chilli, tomato, choy sum, imported round cabbage (from Indonesia and China) as well as cucumber.

“The federation hopes that the government will take action as soon as possible so that the industry will recover and continue the supply of chickens and eggs according to demand.”

“Provision of subsidies as compensation to producers will help cover the losses experienced by the farmers.”

“The government has to activate soft loans immediately to maintain the sustainability of the industry.”

“Shorten and do not extend maximum price control periods so that the industry is released from economic constraints and continues to operate according to the economic forces of supply and demand,” the federation said.

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