Chicken cartel claims illogical, says trade group
PETALING JAYA: Allegations of the existence of a chicken cartel are illogical given the losses incurred by poultry farmers, according to a group representing livestock farmers.
Jeffrey Ng, who is the adviser to the Malaysian federation of livestock farmers’ associations, said the allegations were completely baseless and illogical and farmers would not be suffering losses if there was an alleged cartel.
“If there is a cartel in the chicken industry, then everyone should be making a profit, right?” he said, adding that more than 40 chicken farms have had to close down due to the economic impact from the Covid-19 pandemic and recent world events.
According to reports, five cartels have been accused of monopolising the sector worth RM10 billion annually for many decades now.
Ng also pointed out that the war in Ukraine had affected the export of sunflower oil, corn, soybeans and wheat, saying these are the key ingredients used in chicken feed, which had since become more expensive.
“Ukraine, Belarus and Russia are the eighth, ninth and tenth largest exporters of poultry feed. After the three countries ceased their exports, there was a worldwide shortage, and this has had an impact on the supply chain,” he said.
Ng noted that although the government had provided subsidies, many farmers faced problems, especially over the documentation required to receive the funds.
“About 65% of the farmers are senior citizens and are unable to provide documentation. As a result, many of these livestock farmers have informed us that they have not been able to benefit from the subsidies,” he said.
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