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KUALA LUMPUR: Prices of eggs in Malaysia fell 38% during the movement control order (MCO), but the cost of producing them increased, the government said today.
Agriculture and Food Industries Minister Ronald Kiandee said that the Covid-19 pandemic has affected almost all economic activities, especially the poultry industry, as demand for eggs fell while world food prices rose for chickens.
He said the MCO caused the food industry to limit its operations, causing a drop in demand for restaurants, hotels and school canteens.
“But egg production remained the same and led to dumping of eggs on farms to the point where egg prices fell,” he said.
Jalaluddin Alias (BN-Jelebu) had asked about the impact of the pandemic on local egg production, as the industry is said to be suffering millions in losses following the increase in prices of chicken feed.
Kiandee said that based on the market price of grade C eggs, there was a 38% drop in prices to 21 sen / egg in November compared to 34 sen in April. This resulted in lower profit margins for egg producers.
Meanwhile, he said corn prices rose 15.2% to RM 1,100 a tonne in November compared to RM 955 a tonne in April.
Soybeans also rose 9.4% to RM 2,100 per tonne in November compared to RM 1,920 in April, with prices determined by the world market.
Kiandee said the ministry is looking for short-term intervention measures and holding discussions with animal feed producers to find the best solution.
