KUALA LUMPUR: Despite companies being allowed by the government to import 10,000 metric tonnes of frozen whole chicken, only 4,500 metric tonnes were able to be imported due to a supply shortage.

       Deputy Agriculture and Food Industries Minister I Datuk Seri Ahmad Hamzah said the strong demand for chicken following the reopening of economic sectors such as hotels, restaurants and catering has outstripped the supply.

       Malaysia requires a supply of 2.09 million chickens per day equivalent to 3,762 metric tonnes daily or 62.9 million birds monthly equivalent to 113,220 metric tonnes per month, he said.

       However, according to data by the Veterinary Services Department, chicken production in December 2021 stood at 61.1 million compared with the 62.9 million birds that are needed, said Ahmad.

       "This indicates that there is a shortage of supply in the market. The demand for chicken skyrocketed after the movement control order and to meet the demands, producers would need more time," he added.

       Ahmad said that his Ministry expects that the supply will be sufficient for Ramadan.

       "However, so far, we only managed to import 4,500 metric tonnes of chicken despite the government allowing companies to import 10,000 metric tonnes," added Ahmad during the Question and Answer session in Parliament on Monday (March 21).

       The shortage of chicken supply is due to multiple reasons including poultry industry players reducing their production in order to avoid losses incurred by increased operating costs due to the rise of chicken feed prices, he said.

       “The cost of animal feed accounts for 70% of the cost of production,” he said.

       Corn and soybean meal, which make up the composition of chicken feed, had increased by 110.99% and 83.45% respectively, he said.

       The price of corn increased to RM1,920 per tonne in March 2022 compared with RM910 per tonne in January 2020, and the price of soybean meal increased to RM3,070 per tonne this month compared with RM1,673.50 per tonne in January 2020.

       Other factors influencing the increase in chicken prices are the rise in operating costs along the chain such as logistics costs, labour costs and foreign exchange rates, added Ahmad.

       He also said that the flood disaster at the end of 2021 had affected the poultry industry and so did the rainy season.

       To meet local demand and alleviate the burden of farmers, he said the government has implemented short-term and long-term measures such as opening up the approved permits (AP) for 36 companies to import 36,030 metric tonnes of chicken from December 2021 to May 2022.

       The government also gives subsidies of RM0.60 per kg for chicken and RM0.05 for an egg, benefiting 2,061 poultry industry players and 194 laying hen breeders, he said.

       “Due to the subsidy, people can enjoy the lower price of whole chicken which is RM8.90 per kg and eggs between RM0.39 and RM0.43 each depending on the grade,” he said, adding that the total subsidy borne by the government was RM528.52mil.