Tuesday, January 31, 2023

Chickens are not selling well despite oversupply and reduction in price

NewsChickens are not selling well despite oversupply and reduction in price

After few months of shortage, Malaysia now faces an oversupply of chicken.

Speaking in the Parliament on Monday (1 August), Agriculture and Food Industries (Mafi) Minister Datuk Seri Ronald Kiandee said that the chicken industry has now stabilised thanks to several steps taken by the government.

Ronald said that as the Malaysian chicken industry is recovering and the country now has an oversupply of chicken, which cause the price of chicken locally to plummet lower than the ceiling price of chicken set by the government.

Source: Berita Harian

“In fact, at this point, we can produce 106% of our needs. That means we have the capacity to export chicken from our country to other countries.”

“We currently have an oversupply of chicken, which has now caused the prices of chicken in the market to be lower than that of the ceiling price,” he said.

However, it appears that we are facing another issue where there is less demand for chickens in certain states.

According to Kosmo, chicken sellers in Kuala Nerus and Kuala Terengganu reported a 40% drop in sales despite the prices of chicken being reduced to RM7.30 per kg, as compared to the ceiling price of RM9.40.

Source: FMT

Speaking to the press, Ahmad Ibni Hasan, a chicken trader, said that he only managed to sell 100 chickens daily now compared to 180 chickens previously.

He believes there are lesser customers because there are cheaper chickens sold elsewhere.

“I sold raw chickens for RM7.50 per kg and that’s the lowest since 2021. Before this, it cost RM11.50 before the prices dropped to RM8.50 per kg last week,” he said.

Another trader, Abdullah Endot said prices of chicken have gone down because it has become cheaper at all levels including suppliers.

He said that he could sell 200 chickens in a day previously but now he could only sell less than 100 chickens and had to keep the extras for the next day.

Kosmo reported that the price range of chicken sold is between RM7.30 and RM7.50 per kg now.

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