Exports of up to 3.6 million chickens will be stopped from June 1 in Malaysia until chicken prices and production stabilize, Prime Minister Datuk Seri Ismail Sabri Yaakob said.
The Cabinet agreed on this on Monday (May 23) as a short-term measure for the ongoing chicken shortage issue, he said.
In addition, the government also agreed to create a national chicken buffer stock and to optimize cold room storage facilities currently owned by the Ministry of Agriculture and Food Industry (MAFI) and its agencies.
It has also abolished Approved Permit (AP) for chicken, including whole chicken and chicken parts, Ismail Sabri said, adding that this is aimed at allowing importers to provide more sources of supply and simplify the subsidy claim process by poultry producers.
Also, as a short-term measure, the Cabinet meeting on Monday also decided on adding and recognizing slaughterhouses abroad to increase production of poultry supply.
“The government is aware of reports on the existence of cartels controlling chicken prices and production among the larger companies”.
The Malaysian Competition Commission (MyCC) is investigating this, and we expect the probe to be completed in June.
“If it is found that there is such an agreement between cartels, the government will take legal action against them,” he said.
said government-linked companies (GLCs), government agencies, farmers’ organisations and cooperatives were also encouraged to be involved in poultry farming, adding that the government would study the types of assistance that can be provided.
The prime minister said the government regrets and was disappointed with the actions of some companies who halted chicken production, which in turn resulted in a shortage of supply and price hikes.
Source: The Edge Markets
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