SINGAPORE: Malaysia announced on May 23 that it will limit the export of chickens from June 1 to ensure there is sufficient supply in the domestic market.
“The government’s priority is our own people,” Prime Minister Ismail Sabri Yaakob said in a statement, adding that authorities would also investigate allegations of cartel pricing.
Here’s what you need to know about Malaysia’s export restrictions and the potential impact of this decision:
Q: Why is Malaysia imposing a ban?
Malaysian customers have complained of rising chicken prices amid supply shortages, with some retailers resorting to rationing their sales.
According to major players in the chicken industry, factors that have affected supply include rising chicken production costs, infectious diseases and weather conditions.
These issues were raised during a meeting with the Malaysian Minister of Agriculture and Food Industries on May 23.
A farmer in Johor told CNA that one of the issues affecting supply is the rising cost of chicken feed, which has reportedly increased twice in the last month.
Q: What else is Malaysia doing to address the issue?
Besides halting the export of up to 3.6 million chickens per month from June, Malaysia said it would create a chicken buffer stock and optimize existing cold storage facilities under the ministry. Agriculture and Food Industries and Agencies.
The authorities will also simplify the subsidy application process for chicken farmers and recognize foreign slaughterhouses to increase production of the country’s chicken supply.
The approved permit for importing whole and cut chicken has been abolished, a move aimed at increasing food supply.
The prime minister said the government was aware of allegations that cartels control price and supply, adding that authorities would investigate the allegations.
Q: How long will the export ban last?
No date has been set for the resumption of exports, with Malaysia saying only that the ban will last until domestic prices and production stabilize.
The supply situation has actually been going on since the beginning of the year, said Mr. Ameer Ali Mydin, managing director of hypermarket and retail outlet chain Mydin in Malaysia.
He told CNA that the chain’s weekly orders – usually around 100 tons for all outlets – have fallen to 40 tons.
Smaller retailers also reported receiving fewer supplies.
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