Why does Malaysia ban chicken exports?
The Malaysian government has set a ceiling price of RM 8.9 (US$2) per kilo of chicken, under a price stabilization program effective from February 5 to June 5 – Photo: REUTERS
The decision was made by the Malaysian government in the context of high food prices in the world, partly due to the Ukraine crisis, according to Bloomberg News.
Indonesia also recently banned palm oil exports, India restricted wheat and sugar exports, and Serbia and Kazakhstan imposed quotas on grain shipments.
According to the newspaper Straits TimesAccording to experts, the increase in chicken prices in Malaysia is just the tip of the iceberg in the context of soaring global food prices due to food insecurity.
Despite being able to produce chickens and eggs at a near-subsistence level, Malaysia still faces a serious chicken shortage, mainly because it relies on imported feed and this commodity is in short supply. prices have increased dramatically in recent months.
According to major players in the chicken industry in Malaysia, factors affecting supply include increased production costs, restrictions due to the COVID-19 epidemic and weather conditions.
Malaysian Commodities and Crop Industry Minister Zuraida Kamaruddin also said the Ukraine crisis and erratic weather conditions had caused a shortage of feed for chickens. Accordingly, Malaysian chickens eat less and grow more slowly than usual, limiting the supply.
A farmer in the city of Johor, Malaysia told Channel NewsAsia that one issue affecting current supply is that the price of chicken feed has doubled in May from the previous month.
Affected by higher costs and other factors, some poultry farmers have stopped production, while others have raised prices despite the government’s regulatory ceiling.
Economist Nungsari Ahmad Radhi said poultry feed is made from grains, mainly corn, soybeans and wheat. And because two of the world’s top grain exporters, Russia and Ukraine, are at odds with each other, the sharp rise in global food prices has sent poultry feed prices up.
Solutions
In addition to suspending exports of up to 3.6 million chickens a month from June, Malaysia will create a chicken stockpile and maximize existing cold storage facilities.
Malaysian authorities will also simplify the process of applying for assistance from chicken producers and accrediting slaughterhouses abroad to increase the country’s chicken supply.
Malaysia has not set a date for the resumption of chicken exports. Kuala Lumpur only said the ban would last until prices and domestic production stabilize.
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