PETALING JAYA: Livestock and vegetable producers say they are struggling to stay afloat amid lower demand while consumers are complaining about higher prices, with some even alleging instances of profiteering.Federation of Livestock Farmers’ Associations of Malaysia (FLFAM) president Tan Chee Hee acknowledged complaints about increased prices at retail stores.
While prices may vary at the retail end according to supply chain management, Tan said things have been challenging for wholesalers, who have been losing money since the movement control order periods of last year.
Most people don’t know that chicken and egg wholesalers have been selling at a loss amid the slow market brought about by the pandemic, he said.
He said the cost to produce a kilo of poultry is around RM6 but the producer’s price is now RM4.50 per kilo, which is a loss of more than RM1 per kilo. As for chicken eggs, he said although B grade eggs are sold at about 35 sen or more each at retail price, that is still at a loss as poultry feed cost has risen by more than 30% since last year.
“We have received some complaints of profiteering amid the low demand but it’s not the case.
“Consumers need to realise that while we grapple with low consumption, production cannot be halted just like that. The market has been volatile with the persisting movement restrictions, making it difficult for farmers to forecast demand while having to ensure sufficient supply.
“We have been bracing ourselves to hang on for as long as we can without making huge losses,” he added.
FLFAM’s Poultry Layer Unit chairman Lee Yoon Yeau said consumers should not compare prices of eggs now with prices from several months ago when price dumping happened nationwide due to an oversupply.
“From chicks to eggs and live birds, the process cycle cannot be stopped suddenly halfway for the sake of cost-cutting,” he said, adding that chicks take six months to mature and be able to lay eggs.
Lee, who is also FLFAM deputy president, noted that egg prices have been stable through the years as producers make adjustments and use forecasts to control production so that prices do not fluctuate.
“The normal cost price per egg is 35 sen now, while the highest farm (wholesale) price recorded is 38 sen and selling price at over 40 sen.
“That is why it’s important to ensure there are enough players in the industry to avoid a price increase,” he said, adding that Malaysia’s eggs have been the cheapest among all South-East Asian countries for the past five years.
Poultry feed – which consists of 50% corn, 25% soya bean meal and others items, including wheat pollard and palm oil – is also much more expensive now, said Lee.
“Poultry feed alone makes up 85% of the total production cost.
“The price of corn per metric tonne has gone up by 70% from RM800 in July 2020 to RM1,400 now, while the price of soya bean meal per tonne has increased by 57.6% from RM1,500 to RM2,500 in April, and it dropped slightly to RM2,100 in June and July.
“Malaysia does not produce these items and they have to be imported from Argentina, Brazil and the United States,” he said.
Both Tan and Lee said the federation has been in frequent communication with the relevant authorities to keep them informed of farmers and producers’ issues.
“So far, they understand our situation and we call for continuous support and interaction from them.
“The pandemic is unprecedented and we need to adjust production accordingly to the situation,” said Tan, adding that consumers need not worry as producers will ensure sufficient demand even if it increases next month.
Federation of Vegetable Sellers Association Malaysia president Cheong Tek Keong said that prices of leafy greens have been stable in the last one month while sellers often have excess stocks which are donated in bulk.
“For the past one month, we have been donating several lorries worth of vegetables every week to Kuala Lumpur City Hall to be given to the B40 (lower income) groups and the poor. This is mainly leafy greens from Cameron Highlands.
“This is because people are still not confident about coming out to shop at wet markets. Also, many morning markets and farmers’ markets had not been allowed to operate earlier.
“People were left with not many places to buy vegetables from and some feel that prices have gone up.
“We can’t do much with the prices at retail markets but I can say that vegetables’ wholesale price is not expensive,” he said.
Cheong said some wholesalers who have gone online to sell their produce directly to consumers have been enjoying brisk business.
“Buying vegetables online will certainly cost more after factoring in the necessary packaging and delivery cost,” he pointed out.
However, with morning markets and farmers’ markets now allowed to operate and cater to those who have been fully vaccinated even in states under Phase One of the National Recovery Plan, Chong is hopeful prices will go down.
“When more sellers are allowed to operate, the competition among hypermarkets and grocers will be able to bring down prices soon and allow consumers to have more choices,” he added.