Malaysia will stop the exports of up to 3.6 million chickens from June 1

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 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. 

• The prime minister said the government, at the same time, will reduce the role of middlemen who manipulate supply and prices, adding that it will also re-introduce “the war against middlemen” campaign that was initially carried out in 2014 with the National Farmers Organisation (NAFAS) to take the lead role.
• On views by the Cabinet for the cultivation of corn and the use of palm kernel cake (PKC) as chicken feed alternatives, Ismail Sabri said MAFI and the Domestic Trade and Consumer Affairs Ministry had been asked to present plans on the proposal.
• He
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  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

Read the full report here