Penang’s livestock fees will raise prices of meat, warn breeders

Penang’s livestock fees will raise prices of meat, warn breeders

They say new fees by the Penang veterinary authority will inevitably be passed on to consumers.

The Penang government is imposing new fees on farmed animals like goats, cows, sheep and pigs. (Bernama pic)
GEORGE TOWN:
The Penang government’s decision requiring livestock breeders to pay a minimum fee of RM4 per animal to Penang’s Veterinary Services Department (DVS) from April 1 has raised concerns in the industry with many saying it will result in a hike in prices of meat.

The Penang government has said it will be imposing fees on a myriad of farmed livestock such as cows, goats, sheep, and pigs. The fees will be charged for the issuance of health certificates and transport permits.

The fees apply to breeders transporting animals out of one district in Penang to another and also for export to other states in Malaysia. Previously, livestock breeders only paid RM10 per consignment to the state DVS.

Checks by FMT found that most livestock breeders were not aware of the new fees and many were certain that prices of meat would “definitely” go up once the fees are collected.

A major cow and goat breeder that supplies to butcheries across Penang and the northern states said the fee was essentially a “cukai aniaya”, or loosely translated as cut-throat tax.

He said under the new fee structure, a minimum of RM7 will be levied on each cow or goat transported out of his farms. He said the matter was never discussed with any of the cow and goat breeders.

The breeder, who did not want to be named, said the DVS was “highly incompetent” and not prepared to enforce the new fees, adding that there were already flaws in the present system.

He gave an example of the current requirement for a health certificate and a transport permit fee of RM11 to be paid for each consignment or lorry. He said there had been many occasions where the DVS doctors were not available to sign off on their certificates and permits, causing long delays.

“When we arrive at the DVS offices at 9am, there are no doctors to sign off for our consignment. And here I have my animals waiting in the lorry, in the hot sun. That is why we call it ‘Jabatan Penganiayaan Haiwan’.

“This has happened once too many times, I gave up taking the right path. Now we are forced to skip the legal way.

“You can ask other breeders and they will tell you the same because if we were to wait, our animals would die in the lorries before we get the permits.

“I am forced to ship out animals without a permit, simply because these DVS people are not there. And now with the new fees, how are they going to enforce it?” the breeder asked.

Another cow and goat farmer in Bukit Mertajam said with the current wholesale price of RM27/kg for beef and RM44/kg for local goats, the price will definitely shoot up with the introduction of the fees.

Penang pork to cost more

Meanwhile, Penang Pig Farmers Association chairman Wong Soon Ping said breeders in the state rear a total of 480,000 pigs, which supplies to most of the country, with significant exports to other countries.

Penang Pig Farmers Association chairman Wong Soon Ping.

He said with the new fees set at a minimum of RM4 per animal for pigs, the cost to be borne by its 135 members in the association would easily exceed RM2 million a year.

Wong said the timing of the new fees was bad as the Penang government had passed new laws requiring all piggeries to be in indoors. He said this alone would cost its members RM400 million.

“We are searching for money to upgrade our pig farms and now this. Why can’t the government come and talk to us before putting up this fee?

“Can’t they be a little more sensitive to our needs and be more considerate? They should have engaged with the farmers, who have been supportive of the state all this while,” he told FMT in an interview.

According to Wong, Penang is the second largest producer of pigs after Perak at 560,000, followed by Selangor at 280,000. Johor is fourth at 265,000.

Currently, the market price of pork is between RM8.30/kg and RM8.50/kg in Penang. In Kuala Lumpur, the prices are close to RM9/kg. Wong said Penang exported a large number of pigs to KL and Singapore.

Farmer Ong Kuan Chew, who runs the biggest pig farm in Penang, said the new fee structure was “very unfair”. He said when the new fees were factored into their costs, it would be a burden to the farmers.

“We do not mind paying RM1 per animal, like it is done in other states. But if we are forced to pay RM4 per animal, we will then be forced to pass it on to the consumers,” he said.

Before the fees came into effect, all livestock was charged a flat fee of RM10 by the Penang DVS on a per consignment basis, or per lorry. The new system will see fees being charged by per animal basis.

Under the new system, breeders would have to pay RM3 to RM5 for veterinary health certificates, while a transport permit would cost between RM1 and RM5, depending on the type of animal.

Penang DVS said the minimum charge for each animal would be RM4 if the health certificate and transport permits were combined.

It also announced that those breeding dogs and cats would have to pay between RM20 and RM50 per animal if they wanted a health certificate or transport permit.

The announcement on the new fees was made by Penang Agricultural Committee chairman Dr Afif Bahardin, who said the fees were part of a state law which was gazetted in 2008, but would only take effect on April 1.

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