POKOK SENA (KEDAH): The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) has identified imported chicken feed as one of the main reasons behind the increase in the price of eggs in the market.
Its Minister Datuk Seri Saifuddin Nasution Ismail said most of the chicken feed is imported from countries like Brazil and Argentina with business transaction conducted in Singapore before supply is brought into the country.
“The import of chicken feed is worth about RM35 billion a year, and not many traders involved in this business because when I was first appointed as a minister I was looking at this business and found only 25 or 26 traders.
“Most of the chicken feed is from Brazil and Argentina and the traders have been carrying out their business transaction in Singapore for a very long time, with everything related to finance, insurance, taxes all done in Singapore before the supply is brought into Malaysia using transfer pricing,” he told reporters after attending the handover of zakat (tithes) of the Companies Commission of Malaysia here yesterday.
He was commenting on the increase in the price of eggs in the local market and whether there were cartels and monopolies involved.
Saifuddin said when importers conducted the transfer pricing it led to higher costs borne by the breeders in the country in obtaining the supply.
He said to cover cost they were forced to increase the price of eggs.
He said to address the problem, the ministry had set up a committee led by its secretary-general Datuk Seri Jamil Salleh to ensure that the supply of chicken feed was no longer dependent on the importers.
Meanwhile, according to the Veterinary Services Department portal, the current price of eggs recorded on Dec 4 was at 43 sen each for ‘AA’ grade, followed by 42 sen for ‘A’ grade, ‘B’ grade (41 sen), ‘C’ grade (40 sen), D grade (38 sen) and E grade (36 sen). – Bernama
