Malaysia: The ban on poultry exports does not have significant impact on industry players - economists

Published 2022년 5월 25일

Tridge summary

Malaysia is set to ban chicken exports from June 1 to stabilize chicken prices and production, as part of a short-term solution to a worsening shortage, according to Prime Minister Datuk Seri Ismail Sabri Yaakob. The decision is expected to have a minimal impact on industry players, as exports make up a small percentage of their sales, and is likely to be a temporary measure due to concerns about the impact of price limits on revenue. The government is also looking into allegations of price and production cartels among larger companies. The move is likely to cause a temporary supply disruption in Singapore, as around 5% of Farm's Best Food Industries Sdn Bhd's products are exported to its affiliate in the city-state.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

KUALA LUMPUR: The ban on chicken exports to industry players is seen as not having a significant impact as exports only account for a small percentage of their sales, according to economists. Malaysian University of Science and Technology (MUST) Economics Professor Geoffrey Williams said although the country would stop exporting up to 3.6 million chickens a month from June 1 to stabilize chicken prices and production, industry players were still expected to benefit from the local market, which faced a shortage of continuous. However, he said exporters would lose market share and revenue. Therefore, he proposed a compensation scheme for them if such a scheme does not already exist. “Their feed stocks can be subsidized or they can be given tax concessions. "(However,) their business will survive. They will only have to face this difficult period until the situation calms down. In the long run, they can look to have a better business model," he told Bernama. Prime Minister Datuk ...

Source: Astroawani