KUALA LUMPUR – The chicken farming industry can finally take a breath of relief after the government agreed to provide a subsidy of RM0.60 per kilogramme (kg) of chicken to the farmers.
However, the industry players still need to wait for the final decision on the mechanism to determine the actual subsidy price.
The source said, earlier, the Ministry of Domestic Trade and Consumer Affairs (KDPNHEP) set the farm price for chickens at RM5.60 per kg, however, the Ministry of Agriculture and Food Industries (MAFI) said yesterday that the price will be set at RM5.90 per kg.
“Due to the different price structures, the industry needs to wait for the final decision on which price to follow.
“Although the industry is under the Ministry of Agriculture and Food Industries, the price is controlled under the KPDNHEP. Therefore, we need to wait,” said the source to MalaysiaGazette today.
However, if the farm price is set at RM5.60, the farmers would still find it ‘hard to breathe’ as they need to bear the high cost.
“If it is maintained at RM5.60 per kg, it will not solve the farmers’ problem as we are still suffering high losses.
“However, if the price is set at RM5.90 per kg, at least, the farmers can return to their farms and continue their operation as usual,” he said while putting high hopes for the chicken price issue to be solved soon.
According to the source, the decision made by the Cabinet Minister’s Meeting yesterday has lightened the difficulties caused by the various cost increments, especially the excessive rise of chicken feed cost since last year.
“Of course, we are grateful when the government sees the difficulties of this industry to continue our operation. Otherwise, this industry will collapse due to the global inflation,” said the source.
In a statement issued by the Minister of Agriculture and Food Industries Datuk Seri Ronald Kiandee yesterday, the subsidy has taken into factor of the price of live chicken in the farm of RM5.90 per kg and the retail price of standard chicken at RM8.90 per kg.
Meanwhile, the government has also agreed to provide subsidy of RM0.05 per unit for all category of eggs.
“The purpose of this subsidy is to lighten the burden of the farmers following the increment of cost, especially in the chicken feed which encompassed 70 percent of the production cost besides the logistics, manpower, utilities and medication costs,” he said.
The subsidies will be given from 5 February until 4 June 2022 throughout the implementation of the Keluarga Malaysia Maximum Price Scheme (SHMKM). -MalaysiaGazette