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Singapore chicken importers say it is difficult to pivot to other sources on short notice as Malaysia curbs exports
www.channelnewsasia.com
The importers added that the gap in supply from Malaysia could lead to “price increases” for chilled chicken in the short term.
“It is inevitable that when supply drops and demand stays the same, the prices of chilled chicken will go up. It’s simple market forces and can’t be helped,” said Mr Ma.
Kee Song Food’s Mr Sim echoed similar sentiments.
He told CNA that the shortage in chicken from Malaysia is not a new phenomenon, and stocks have been dwindling over the last few months due to the rising costs of chicken feed and other raw materials.
Mr Sim said that Kee Song Food’s supply has fallen by about 20 per cent even before Malaysia's latest move to halt chicken exports, and the company has been forced to adjust prices.
“We initially absorbed the increase in costs but it’s not something sustainable so we were forced to adjust prices a few times,” he added.
“Consumers have to understand this. As a result of the increase in the cost of chicken feed, the cost of production has gone up. If we price chicken at, let's say S$4 per kg, and even with the increase in costs, we still price the same, the more chickens we sell, the more money we lose,” said Mr Sim.
He also noted that chickens supplied from Malaysia recently were smaller in size compared to what was supplied previously. Mr Sim said that due to the shortage, the chickens were “not given ample time to grow”.
“For chicken rice stalls, you need chickens that weigh about 2.4kg to 2.5kg, but recently the supply we received weighed 1.5kg to 1.6kg, a whole kilogram less. We receive complaints (from clients), but they mostly have no choice but to accept the situation,” added Mr Sim.
Mr S Caleb Rajah, who runs a farm in Kota Tinggi, said the increase in the price of chicken feed, from RM125 (S$39) for a 50kg bag to about RM150 due to inflation, means that he has been unable to make profits from his sales.
He sold about 3,000 chickens before Hari Raya and is now trying to find a way to grow chicken feed himself so that he can start rearing again.
“We can’t cover our costs, and we are losing our money. So I’ve stopped putting chickens on the farm for now,” said Mr Rajah.
Mr Joseph Siu, who operates a chicken farm near Batu Pahat and exports about 200 chickens a day to Singapore, told CNA that he is set to pause operations for now, especially with the announcement to ban exports from Jun 1.
He said that the curb in exports could see his business earnings drop by about 75 per cent.
“It’s a wait-and-see situation. We don’t know how long this export ban will last, but hopefully the market will recover domestically, and we can then resume exports to Singapore,” Mr Siu said.
www.channelnewsasia.com
The importers added that the gap in supply from Malaysia could lead to “price increases” for chilled chicken in the short term.
“It is inevitable that when supply drops and demand stays the same, the prices of chilled chicken will go up. It’s simple market forces and can’t be helped,” said Mr Ma.
Kee Song Food’s Mr Sim echoed similar sentiments.
He told CNA that the shortage in chicken from Malaysia is not a new phenomenon, and stocks have been dwindling over the last few months due to the rising costs of chicken feed and other raw materials.
Mr Sim said that Kee Song Food’s supply has fallen by about 20 per cent even before Malaysia's latest move to halt chicken exports, and the company has been forced to adjust prices.
“We initially absorbed the increase in costs but it’s not something sustainable so we were forced to adjust prices a few times,” he added.
“Consumers have to understand this. As a result of the increase in the cost of chicken feed, the cost of production has gone up. If we price chicken at, let's say S$4 per kg, and even with the increase in costs, we still price the same, the more chickens we sell, the more money we lose,” said Mr Sim.
He also noted that chickens supplied from Malaysia recently were smaller in size compared to what was supplied previously. Mr Sim said that due to the shortage, the chickens were “not given ample time to grow”.
“For chicken rice stalls, you need chickens that weigh about 2.4kg to 2.5kg, but recently the supply we received weighed 1.5kg to 1.6kg, a whole kilogram less. We receive complaints (from clients), but they mostly have no choice but to accept the situation,” added Mr Sim.
JOHOR CHICKEN FARMERS STOP REARING DUE TO HIGH COSTS
Chicken farmers in Johor who export to Singapore told CNA that the high cost of chicken feed has forced them to halt operations.Mr S Caleb Rajah, who runs a farm in Kota Tinggi, said the increase in the price of chicken feed, from RM125 (S$39) for a 50kg bag to about RM150 due to inflation, means that he has been unable to make profits from his sales.
He sold about 3,000 chickens before Hari Raya and is now trying to find a way to grow chicken feed himself so that he can start rearing again.
“We can’t cover our costs, and we are losing our money. So I’ve stopped putting chickens on the farm for now,” said Mr Rajah.
Mr Joseph Siu, who operates a chicken farm near Batu Pahat and exports about 200 chickens a day to Singapore, told CNA that he is set to pause operations for now, especially with the announcement to ban exports from Jun 1.
He said that the curb in exports could see his business earnings drop by about 75 per cent.
“It’s a wait-and-see situation. We don’t know how long this export ban will last, but hopefully the market will recover domestically, and we can then resume exports to Singapore,” Mr Siu said.
