The communications and multimedia minister confirmed that there was a shortfall of more than 96 million eggs a month, as higher production costs had caused monthly output to drop to only 871.9 million eggs compared to demands totalling 968.8 million eggs.
“We do not view the import option as a solution. Firstly, the prices of eggs are far higher outside, so it is not possible to import more expensive eggs and sell them cheap in the country. Furthermore, we want to protect the local industry.
“And if egg prices are floated, they will surge by at least 12 sen. So, the task force is not agreeable to this suggestion although floating is seen as a more sustainable solution, especially in the opinion of producers,” he told a news conference after chairing a meeting of the task force.
To address the issue, the task force recommended that the subsidy of eight sen per egg be increased by two sen, which involved a financial implication of RM20 million a month, or the other option was to raise the existing controlled price by two sen per egg.
Annuar said the current prices of eggs at the farm level were 41 sen each for Grade A, 39 sen for Grade B and 37 sen for Grade C.
However, the production cost for Grade A eggs is 51 sen each.
“Adding the 41 sen price for Grade A eggs and the eight sen (subsidy) will amount to 49 sen, so the income of producers is two sen short of the production cost. This caused some breeders to resort to actions like destroying chickens which have reached a certain age earlier. Normally chickens which are 80 to 85 days old can still lay eggs but they have to be destroyed to cut costs.
“The chickens to replace those slaughtered are slow in production, causing overall output to continue dropping and affecting egg supply in the country,” he added.
As one of the options involved financial implications at a time when Parliament had been dissolved, the matter was immediately referred to the prime minister and finance minister because a quick decision was needed, Annuar said.
He said the task force asked for the cooperation of egg producers to not destroy hens at a younger age and urged industry players to come up with other suggestions to overcome the shortage in the supply of eggs.
On enforcement regarding the prices of chicken and eggs, Annuar said that since Feb 5 this year, there were 151 cases of sellers breaching the maximum price.
There were 177 cases related to cooking oil, with seizures worth RM3.3 million, he added.