Wednesday June 4, 2008 MYT 2:45:02 PM
Chicken breeders laud move to abolish ceiling price
PETALING JAYA: Chicken farmers welcomed the government's move to abolish the RM6 per kilo ceiling price but pointed out that the poultry industry had never received any form of subsidy.
Responding to a statement by Domestic Trade and Consumers Affairs Minister Datuk Shahrir Abdul Samad Wednesday, the Federation of Livestock Farmers Associations of Malaysia (FLFAM) emphasised that the industry had always operated on a purely commercial basis.
The report quoted Shahrir as saying: "Since the country produces more chicken that it needs, it would no longer be subsidised.
"My ministry and the Agriculture and Agro-based Industry Ministry have agreed to the removal of ceiling prices on fresh chicken. The prices at ex-farm, wholesale and retail levels will be removed some time this year."
FLFAM's broiler unit chairman Kwei Yew Tong said that the poultry industry has always operated on a commercial basis and that the ceiling price regime was unfairly imposed on producers in the absence of subsidies from the Government.
He said the association regretted the delay in the decision of removing the ceiling price as producers had been waiting for the announcement since a memorandum on the issue was submitted in July last year.
"The cost of production has escalated further to RM4.53 per kilo since that date and it is unreasonable to expect producers to sell their farm output below the cost of production at RM4 per kilo.
"We believe the ceiling prices should be removed immediately (ex-farm, wholesale and retail levels)," he said.
Kwei also assured consumers that there was sufficient supply of chicken and eggs even as producers were coping with the recent steep increases in production costs.
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