Thursday October 25, 2012

Eateries and bakeries willing to absorb costs

PETALING JAYA: Restaurateurs and bakers say they are willing to absorb the increase in chicken egg prices to hold down prices for as long as they can.

The price hike by two sen per egg started early this week due to a nationwide shortage of eggs following the over-culling of old layer hens by farmers to keep production costs low.

Indian Muslim Restaurant Owners Association president Datuk Jamarulkhan Kadir said mamak eateries were not planning to raise their food prices despite the increase in the prices of eggs, which are an essential ingredient in many of their dishes.

“So far, only one or two food items first sugar, now eggs have increased in price and, as far as I know, the outlets have been absorbing the cost.

“At the moment, consumers do not have to worry about having to pay more for their breakfast staple roti telur, half-boiled eggs or telur mata (bull's eye),” he added.

He said the price increase was still manageable, as the operational cost for a mamak stall or outlet was relatively low.

A spokesman for a popular bakery and confectionery chain said its 12 outlets and central kitchen used about 10,000 eggs daily.

“We are aware of the price increase, and are not increasing the prices of our products for now.

“However, if this goes on, we will eventually have to make price adjustments,” the spokesman said.

Baker's Cottage chief executive officer Marvin Lau said the confectionery chain was not increasing its prices for now but was monitoring the situation closely.

Meanwhile, Deputy Domestic Trade, Cooperatives and Consumerism Minister Datuk Tan Lian Hoe said the price increase of one to two sen was a “normal phenomenon” and “unavoidable” due to the drought in the United States.

Since eggs were not a controlled item, their prices had fluctuated due to market forces, she said.

“In the meantime, we will monitor the situation and our enforcement officers will be on the ground to check on traders.”

She urged consumers to be smart and stop patronising shops and traders who took this opportunity to increase the prices of their goods.

Deputy Agriculture and Agro-based Industry Minister Datuk Chua Tee Yong said he had directed the Veterinary Services Department to check on the situation.

“We do not know whether this is a collective action by the industry or only involves certain farms,” he said.

News

Thursday October 25, 2012

Eateries and bakeries willing to absorb costs