Eggs in Malaysia may cost more as poultry farms cut output

The cheapest source of protein may cost more as a shortage is looming after poultry farms in Malaysia slash production due to increasing costs, limited subsidies and a ceiling price to adhere to.

The closure of about 40 per cent of poultry farms – which have fallen from more than 300 to just 170 – is not helping.

Those still operating say they need better subsidies to keep prices low, especially with the doubling of chicken feed prices. Many of them say they are also on the brink of folding.

The farmers say they lose five sen per egg despite the government subsidy of five sen each.

Mr Lee Yoon Yeau, deputy president of the Federation of Livestock Farmers Associations of Malaysia, said the war in Ukraine had pushed maize and soya bean meal prices up by another 50 per cent between April and June.

“Maize and soya bean meal make up over 80 per cent of chicken feed. Since the pandemic two years ago, farmers have been struggling due to the increasing feed cost.

“Maize used to cost RM800 (S$252) per tonne before the pandemic. During Covid-19, it went up to RM1,300 per tonne. Now, it is more than RM1,800 per tonne,” he said on Friday (July 15).

Soya bean meal, he added, now costs more than RM2,650 a tonne, up from RM1,650 in January 2020.

Mr Lee said although the government had set the ceiling price at RM0.35 per egg (Grade C) from Feb 5 to June 30, the cost of production had risen to RM0.45 per egg.

“So, with a five sen per egg subsidy, we lose five sen. With the current daily production of 28 million tonnes, the loss is RM1.04 million daily and RM42 million monthly for farmers,” he said.

For July and August, the government has announced an increase of two sen in ceiling price per egg, with nothing said about the subsidy.

SOURCE: NEWS AGENCIES