FOMCA: Investigations on the Poultry Production Monopoly that Sets High Prices


SHAH ALAM, July 13: To control the prices of poultry that often increases during festive seasons, the Federal Government has been advised to investigate whether there is a monopoly by certain quarters that take the opportunity to increase prices even at the farm level.

The Communications Director for the Federation of Malaysian Consumers Associations (FOMCA), Mohd Yusof Abdul Rahman said that the move is among the feasible alternatives that can be implemented in line with the existence of the Competition Act 2010.

“The Government, through the Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK) can carry out investigations to probe if there are monopoly alliances among poultry farmers and producers to increase prices.

“With this, action can be taken against monopolies and to re-stabilise the prices of chicken to ensure that chicken prices are free from being determined by a particular group,” stressed Yusof when contacted.

In addition, Yusof also suggested for the Central Government to allow poultry supply to be imported from overseas to compete with local chicken supply to offset market prices.

“This will not only provide healthy competition to the local poultry market, but with this move, poultry prices will indirectly be stabilised,” he said.

He commented on the sharp increase of chicken prices over the past two weeks; the increase to RM8.50 and RM9,00 per kilogram compared to RM6.50 and RM7.60 per kilogram previously.

Yesterday, the KPDNKK Minister, Datuk Hasan Malek said that the Federal Government will implement the Price Control Scheme for the Hari Raya Aidilfitri 2013 starting from early August.

He said that during the period, the prices of chicken will be determined by the government and traders and poultry producers have to comply with the pricing.

On a normal day and not during festive seasons, which is outside the Price Control Scheme, poultry prices cannot be controlled and it is determined by demand and supply.

Mohd Yusof added that consumers can help by reducing demand for chicken consumption, and offset by taking other resources such as beef, fish and vegetables.

“The high demand, which has doubled, has caused the prices of poultry to rise, so reduce demand for chicken and take other food sources which are also healthy,” explained Yusof.

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