Fomca: Ceiling price for chicken, eggs a win-win solution 

A employee arranges eggs on the market at a store in Kuala Lumpur February 15, 2022. — Image by Yusof Mat Isa

Friday, 01 Jul 2022 12:01 AM MYT

KUALA LUMPUR, June 30 — The brand new authorities ceiling worth for hen and eggs is a win-win state of affairs for all events, particularly farmers and shoppers, bearing in mind the nonetheless unstable market state of affairs.

Federation of Malaysian Client Associations (Fomca) deputy president Mohd Yusof Abdul Rahman stated this was as a result of the rise within the ceiling worth of hen and eggs will assist farmers cowl the price of poultry and ensures that consumers won’t be burdened with overly excessive costs.

He stated that although there is a rise within the ceiling worth on the 2 uncooked supplies, it was nonetheless at a charge that didn’t have a huge impact on shoppers in comparison with if the value is floated.

“Some say if the value is floated, the value for hen, for instance, could attain RM15 per kg however this (new ceiling worth) is just not too excessive to value shoppers that rather more.

“For suppliers (breeders) and merchants, the (new) ceiling worth could also be acceptable as a result of it might probably cowl the price of livestock manufacturing, so we (Fomca) hope that on this means (setting ceiling worth), there isn’t any challenge of decreased hen manufacturing. As an alternative, it ought to get better to the standard costs,” he advised Bernama.

Yesterday, the federal government determined to not float the value of hen however continued with the subsidy by setting the usual retail ceiling worth of hen at RM9.40 per kg for Peninsular Malaysia beginning tomorrow, whereas the retail ceiling worth of eggs for grade A was set at 45 sen; grade B (43 cents) and grade C (41 sen).

Beforehand, the utmost retail worth of hen and eggs for Peninsular Malaysia for normal complete hen was RM8.90 kg and tremendous complete hen (slaughtered and cleaned with out legs, head, liver and gizzard) at RM9.90 per kg; most worth of grade A eggs was set at 43 sen every, grade B (41 sen) and grade C (39 sen).

In the meantime, senior lecturer on the School of Economics and Administration at Universiti Malaya, Mohammad Tawfik Yaakub stated the rise within the ceiling worth was solely non permanent till provide and financial system of the neighborhood returned to stability.

“On the a part of the breeders, there could also be some who can be somewhat disenchanted as a result of the earnings earned will not be too excessive but it surely (new ceiling worth) won’t final ceaselessly.

“I’m positive the federal government will overview the ceiling worth since farmers are additionally contributors to the nationwide financial system however within the current state of affairs, the federal government wants to think about a win-win state of affairs as a result of this matter includes the livelihood of the individuals,” he stated.

Mohammad Tawfik stated with Malaysians consuming an estimated two million chickens a day or 60 million chickens a month, the provision of hen and eggs must be stabilised out there with the federal government taking a look at different options together with utilizing present manpower assets to assist farmers enhance manufacturing.

On the identical time, he hoped that the worth of the compound below the Worth Management and Anti-Profiteering Act 2011, which was imposed on merchants who defaulted on the ceiling worth, could possibly be elevated in an effort to deter different rogue merchants.

“Other than the compound, there should even be an modification to the rule (Act) for stiffer punishment. If enforcement is just not strict and the principles will not be ample (for deterrence) and the worth of the compound is low and simply paid by merchants, then we won’t get anyplace,” he stated.

For economist Barjoyai Bardai, the federal government ought to have a forensic audit mechanism on hen buying and selling transactions as a part of enforcement motion so {that a} thorough investigation will be completed on the provision chain if there’s a provide disruption or breach in ceiling worth.

He stated this was vital as a result of retailers are those which are principally affected by enforcement motion for failing to adjust to the ceiling worth as their revenue margin is just not as massive as loved by breeders.

“Typically a retailer buys hen from a provider for RM8.80, then if he sells at RM8.90, it won’t cowl different prices. So retailers must promote at the next worth whereas some cost a labour value of chopping hen which ultimately ends in a worth of RM9.40 or extra.

“That is in fact unlawful and if caught, it’s the retailer who can be blamed as he offers straight with shoppers whereas the provider who has made a revenue won’t be fined. Due to this fact, there must be a radical investigation to know who’s taking the upper revenue margin,” he stated. — Bernama