By Reza A Hamid
MELAKA – The chicken eggs supply crisis will peak as the supply nationwide is projected to reduce by 4.5 million units per day or more if the government continues to maintain the existing price without allowing price increment or issuing subsidies.
The figure is based on approximately 1,500 chicken eggs producers who supply between 27 million to 30 million eggs per day when they are forced to reduce their production up to 15 percent as they can no longer afford to support the increasing operational cost.
According to a source from the industry, the situation was made worse after the government announced the Keluarga Malaysia Maximum Price Scheme (SHMKM) that was supposed to end today. With the announcement, the price of the chicken eggs will remain unchanged until 5 June.
Under the SHMKM, the government fixed the maximum chicken eggs retail price at 43 sen per unit (Grade A), 41 sen (Grade B) and 39 sen (Grade C). Meanwhile, the prices of the eggs would depend on the location in Sabah, Sarawak and Labuan.
The source said, for the past two weeks, the cost of chicken feed such as soy has leaped from RM2,100 to RM2,500 per tonne while the price of corn of up to RM1,500 per tonne also gave a huge impact to the producers.
“To cost to produce an egg is between 36 to 38 sen, thus, the suppliers questioned if it is appropriate for them to sell them below cost price to the traders who then had to sell them at a controlled price of 39 sen per unit at the market?
“If such price is maintained, the chicken eggs farmers said that they have no choice but to reduce their production. If this happens, the egg supply crisis will prolong and it would be difficult for the consumers.
“The country may lose more than 4.5 million eggs per day if the production is reduced by 15 percent,” the source told MalaysiaGazette today.
According to the source, there were proposals from chicken egg farmers to increase the price of eggs to up to five sen per unit as the cost of chicken feed including soy and corn have increased up to 15 percent.
The decision by the National Action Council on Cost of Living (NACCOL) on the Food Producers Industry on 31 January to maintain the pieces of eggs under the SHMKM until 5 June has murdered the chicken farmers despite it being a popular decision among the consumers.
Besides hoping for subsidies, he said that the egg suppliers also suggested to determine the price of the commodity according to the market force or demand as the government is running out of resources to provide continuous subsidies.
Last Wednesday, MalaysiaGazette reported that the prices of chicken eggs in the state is projected to increase by 5 sen per unit or RM1.50 each tray of 30’s after the Chinese New Year holidays.
The situation happened after several traders alleged that they have received the notice from their suppliers on the possibility of price increment due to egg supply shortage in the state since three weeks ago. -MalaysiaGazette