Malaysia bans chicken exports

Malaysia announced to curb the export of chickens from Jun 1 to ensure that there is sufficient supply in the domestic market.

“The government’s priority is our own people,” Prime Minister Ismail Sabri Yaakob said in a statement, adding that authorities will also investigate allegations of cartel pricing.

This move will impact Malaysia's export curbs and the potentials. For example, Malaysian customers have complained of rising chicken prices amid a supply shortage, with some retailers resorting to rationing their sales. According to major players in the chicken industry, factors that have affected supply include the rising costs of chicken production, disease infection and weather conditions.

These issues were raised in a meeting with Malaysia's Agriculture and Food Industries Minister on Monday, reports CAN.

A farmer in Johor told CNA that said one issue affecting supplies is the rising cost of chicken feed, which has reportedly gone up twice over the last month.

Apart from halting the export of up to 3.6 million chickens a month starting June, Malaysia said it will create a buffer stock of chicken and optimise existing cold storage facilities under the Ministry of Agriculture and Food Industries and agencies.

Authorities will also simplify the subsidy claims process for chicken producers and recognise overseas slaughterhouses to increase the production of the country’s chicken supply.

The approved permit for importing whole and cut chicken has been abolished a move which is aimed at increasing food supply.

The prime minister said the government is aware of claims that cartels are controlling the price and supply, adding that authorities will investigate the allegations.

However, no date has been set for resuming exports, with Malaysia saying only that the ban will last until domestic prices and production stabilise.

The supply situation has actually been going on since the start of the year, said Ameer Ali Mydin, the managing director of the Mydin chain of hypermarket and retail outlets in Malaysia.

He told CNA that the chain’s weekly orders – usually amounting to about 100 tonnes for all outlets – have fallen to 40 tonnes.