The setting a ceiling price for chicken and eggs is a win-win situation.
Taking into mind the continuing unpredictable market conditions, the new government ceiling price for chicken and eggs is a win-win situation for all parties, notably farmers and consumers.
According to Mohd Yusof Abdul Rahman, vice president of the Federation of Malaysian Consumer Associations (Fomca), the hike in the ceiling price of chicken and eggs will assist farmers cover the cost of raising poultry and ensure that consumers won’t be subjected to excessively high costs.
Even if the ceiling price for the two raw materials has increased, it did so at a rate that did not significantly affect consumers as opposed to if the price were to be floated.
The standard retail ceiling price of chicken was established yesterday at RM9.40 per kilogramme for Peninsular Malaysia, effective tomorrow. In contrast, the retail ceiling price of eggs was fixed yesterday at 45 sen, grade B (43 cents), and grade C (43 cents), respectively (41 sen).
Prior to this, the maximum retail price for chicken and eggs in Peninsular Malaysia was set at RM8.90 per kg for standard whole chickens and RM9.90 per kg for super whole chickens (slaughtered and cleaned without legs, head, liver, and gizzard). The maximum price for grade A eggs was set at RM43.30 per egg, grade B at RM41.30, and grade C at RM4.90 per egg (39 sen).
According to economist Barjoyai Bardai, the government should create a forensic audit mechanism on chicken trade transactions as part of enforcement action so that, in the event of a supply disruption or price ceiling breach, a comprehensive inquiry may be done on the supply chain.
This was crucial since retailers, whose profit margins are smaller than those of breeders, are the ones more frequently subject to enforcement action for violating the cap price.
