Friday June 13, 2008

Chicken price soars to RM7 a kilo

By PAUL CHOO

KUALA LUMPUR: Chicken sellers have increased their prices despite a 60 sen per kilo drop in ex-farm prices, says Federation of Livestock Farmers Association of Malaysia (FLFAM).

The association's broiler unit chairman Kwei Yew Tong said, however, the increase was justifiable considering the recent hike in fuel prices.

Kwei said that as of yesterday ex-farm prices stood at RM4 per kilo but added he had read reports that the market price had risen to RM7 per kilo in several places.

“The ex-farm price has gone down because it is dependent on supply and demand, and currently, the demand has slumped.

“Chicken sellers have had to increase their prices to offset costs in transportation and other expenses. This is in addition to the drop in sales too,” he said.

Asked whether there were complaints of losses, Kwei confirmed that many were forced to close shop because they could not cope with basic costs.

A check with the FLFAM website www. flfam.org.my showed that prices of chicken eggs had increased by two sen per egg for all grades.

Grade AA eggs stand at 28.5sen while Grade A, B, C, and D stand at 28sen, 27.5sen, 27sen and 26.5sen respectively.

Selangor and Federal Territory Poultry Wholesalers Association Datuk Dr Lee Chong Meng confirmed that the sellers have raised their prices.

“With the lifting of the ceiling price of RM6 per kilo for chicken recently, the price increase should come as no surprise because they had been trading at a loss before that.

“We must take into consideration the cost of transportation and operating costs.

“Right now the highest price is at RM7 per kilo and this price fluctuation is a result of market forces. Give it one or two months to settle down,” assured Dr Lee.

Meanwhile, the Malaysian Meat Importers Association secretary Dr Santhirakesu Rengasamy said they were not planning to increase the price of meat.

“The rise in oil price is not the main reason for any increase in the beef price. The high demand for beef by other countries has resulted in the price increase,” he added.

Dr Santhirakesu said the price of beef would remain at RM12 per kilo.