Recent headlines in the local newspaper have been talking about Malaysia's chicken crisis. According to the latest updates, Malaysia has now decided to stop exporting the birds at the end of the month due to a severe chicken shortage.
Locals were forced to endure the continuous chicken price hikes for months, the government finally decided that in order to have more available for the domestic market, Malaysia will have to stop importing chickens to other countries. This will help stabilize the price of the chicken and presumably help calm down locals who have been complaining about the price hikes for months.
While we appreciate the efforts that are being done to stabilize the price of the chicken, curiosity someones get the best of us. Many locals are wondering with the capacity to produce chickens and eggs to almost self-sufficiency levels, how are we facing a severe chicken shortage?
Recently, a Twitter user, @OkinaFitto shared a Tweet quoting Yani Hardinata Hairuddin or Yani who is a chicken business owner. Yani has 10 years' worth of experience in the chicken industry and he decided to share the real reason why there is a chicken shortage in Malaysia.
Prices Depend On The Cost
According to Yani, the price of the chickens actually depend on the cost of rearing the chicken. If the cost of rearing the chicken increases, the price it is being sold at would increase too and vice versa.
Unfortunately last year, the price of imported raw materials rose due to the weak Ringgit, an increase in international delivery costs and supply factors.
This caused an increase in corn prices up to 100% more in 2021, soybean prices up to 30% more in 2021 and wheat prices as well. All of these are the main imported components of bran/chicken feed.
Every year, more than 3.9 million metric tonnes of corn grains and more than 1.4 million metric tonnes of soybeans are imported.
Why Import Chicken Feed?
According to Yani, for chicken that will be sold as meat, its feed has to be prepared meticulously so that the chicken has enough nutrients and can grow to its maximum size efficiently in the allocated time.
Also, most importantly, the chickens have to like to eat the food given to them.
Since most chicken breeds are imported breeds like COBB, ROSS and Indian River, Yani says that they don't eat sweet corn from Cameron Highlands. They need corn grains that are not widely grown in Malaysia.
Higher Raw Materials Cost, Higher Chicken Feed Cost
So, Yani explains that the higher the cost of these raw materials which are used to make chicken feed, the higher the cost of chicken feed, from RM80 for 50kg to RM120 for 50kg.
When the price of chicken feed increases, so does the cost of rearing the chickens and logically this causes a rise in the price of chickens too.
The Reality
According to Yani, the price control on chickens are RM9.30, however, that is without any price control or subsidies for chicken feed.
So, the chicken feed manufacturers are forced to absorb the cost of the price increase so that the consumers won't be burdened by it.
In reality, chicken business owners face a loss when there are price controls.
In order to bear the loss, they lower the number of chickens entering the farms which cause the chicken shortage.
Moreover, with the price controls getting lower, from RM9.30 to RM8, more chicken rearers find it difficult to continue doing business and are forced to close down.
Yani explains that there is no corruption or hidden agendas, just chicken rearers trying to make life easier.
So, what do you think about the chicken shortage that we are currently facing? Share your thoughts and opinions in the comments section, maybe one of you can come up with a good solution to the problem and save us all!
