PETALING JAYA: Dessert enthusiasts are expected to pay more for their favourite pastries and cakes as the price of eggs fluctuates after June.
Bakers and food producers are anticipating price hikes following the government’s recent announcement to float egg and chicken prices.
However, they said they would absorb the cost if the amount was small.
Bread and cake maker Justin Lai, 42, said the fluctuation plan, combined with other factors such as rising ingredient prices and a drop in the ringgit value, has him expecting a price increase on eggs.
He said that bread and cake prices had risen by 6% to 10% since the middle of last year.
“If the cost of eggs goes up again, I think there will be another round of price adjustments after June,” he added.
Lai, however, said he was more concerned about a stable supply of eggs than the price swing.
Malaysian Bakery, Biscuit, Confectionery, Mee and Kuay Teow Merchants Association president Lai Yee Kein said eggs were a key ingredient in wantan mee.
“Making the noodle requires a lot of eggs. If the price (of eggs) goes up, the cost is bound to rise as well,” he said.
He, however, believes that it was still premature to discuss the price increase because the fluctuation plan would not be implemented for several months yet.
Federation of Livestock Farmers’ Associations of Malaysia president Tan Chee Hee said the supply of eggs and chicken could be stabilised in June.
Even so, he pointed out that the prices of these items would not go down due to the rising cost of chicken feed, which make up some 60% of the production cost.
“The price of corn remains high at RM1,600 per tonne. It was only RM800 per tonne before 2020,” he revealed.
He urged the government to provide a soft loan for poultry breeders to upgrade their farming facilities.
