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Fomca: Chicken and egg ceiling prices are a mutually beneficial solution

A worker arranged for the sale of eggs at a store in Kuala Lumpur on February 15, 2022. — Photo: Yus of Mat Isa

Friday, July 1, 2022 12:01 AMMYT

Kuala Lumpur, June 30 — The new government cap price for chicken and eggs is still beneficial to all parties, especially farmers and consumers, given the volatile market conditions.

Mohd Yusof Abdul Rahman, Vice President of the Malaysian Consumers Association (Fomca), said that raising the cap price for chicken and eggs helps farmers cover the cost of poultry and puts buyers at overly high prices. He said it was to ensure that it wasn’t there.

He said that even if the upper limits on the two raw materials went up, they wouldn’t have a significant impact on consumers compared to when prices fluctuated.

“If prices fluctuate, for example chicken prices can reach RM15 per kg, but this (new cap price) is not high enough to cost consumers too much.

“For suppliers (breeders) and traders, the (new) cap may be acceptable as it can cover the cost of livestock production, so we (Fomca) thus (set the cap), We hope there are no price cuts. Chicken production. Instead, it should return to normal prices, “he told Bernama.

Yesterday, the government decided not to fluctuate the price of chicken, but set the standard retail price of chicken in Peninsula Malaysia starting tomorrow at RM9.40 per kg and set the retail price of grade A eggs. The subsidy continued at 45 sen; Grade B (43 cents) and Grade C (41 sen).

Previously, Peninsular Malaysia’s standard whole chicken chicken and egg retail price was RM8.90 kg, and ultra-whole chicken (slaughtered and washed without legs, head, liver, gizzards) was RM9.90 / kg. did. The highest price for Grade A eggs was set at 43 sen each for Grade B (41 sen) and Grade C (39 sen).

Meanwhile, Mohammad Taufik Yaakub, a senior lecturer at the University of Malaya’s Faculty of Economics and Administration, said raising the cap price was temporary until community supply and economic stability.

“On the breeder’s side, some people may be a little disappointed because the profits they get aren’t that high, but that (the new cap) won’t last forever.

“I am convinced that the government will review the maximum price because farmers are also contributing to the national economy, but at present it is a problem related to the lives of the people, so the government needs to consider a situation that is beneficial to both sides. “. ..

Mohammad Tawfik says that Malaysians consume an estimated 2 million chickens per day and 60 million chickens per month, so the government will use existing human resources to increase farm production. He said it was necessary to stabilize the chicken and egg supply by considering other alternatives.

At the same time, he hopes to be able to increase the value of compounds under the 2011 Price Control and Fraud Prevention Act imposed on traders with cap price defaults to thwart other fraudulent traders. I was there.

“Apart from the compound, there must also be amendments to the rules (laws) for stricter punishment. The enforcement is not strict, the rules are not sufficient (for deterrence), the value of the compound is low, If the trader can’t afford to pay, we won’t go anywhere, “he said.

For economist Barjoyai Bardai, the government needs to put in place a court audit mechanism for chicken trading as part of its enforcement measures so that it can thoroughly investigate the supply chain in the event of supply disruptions or cap price breaches. I have.

This is important because retailers are not as big as the profit margins that breeders enjoy and are largely affected by enforcement measures for non-compliance with cap prices, he said.

“Retailers may buy chicken from suppliers for RM8.80, but if you sell it for RM8.90, other costs are not covered, so retailers need to sell at a higher price. However, some charge labor costs for cutting chicken, and the final price will be RM9.40 or higher.

“This is, of course, illegal, and if caught, it is the retailers who are accused of dealing directly with consumers, and the profitable suppliers are not fined, so who is higher. We need a thorough investigation to find out if we are profitable, “he said. — Bernama

https://www.malaymail.com/news/malaysia/2022/06/30/fomca-ceiling-price-for-chicken-eggs-a-win-win-solution/15128 Fomca: Chicken and egg ceiling prices are a mutually beneficial solution

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