Selangor Journal
Trader Hafizi Mohamad, 25, arranges the chickens for sale at the Chabang Tiga Market in Kuala Terengganu, Terengganu, on April 19, 2021. — Picture by BERNAMA

Average production cost of broiler chicken at RM6.53 per kg, egg at RM0.48 in Sept — DOSM

KUALA LUMPUR, Dec 30 — On average, the production cost of broiler chickens in Malaysia was recorded at RM6.53 per kg, while for eggs, the average production cost was recorded at RM0.48 in September this year, according to the Department of Statistics Malaysia (DOSM).

Chief Statistician Datuk Sri Mohd Uzir Mahidin said assuming a five per cent, 10 per cent and 20 per cent of profits from the production cost, the farm price of chicken per kg can be in a range of RM6.86 to RM7.84.

“The profit margin of chicken per kg at the wholesale level was recorded at RM1.30, while the profit margin of chicken per kg at the retail level was at RM1.25,” he said in a media statement on the Report of Special Study on Production Cost of Chicken and Egg 2022, today.

For eggs, Mohd Uzir said assuming a five per cent, 10 per cent and 20 per cent of profits from the production cost of eggs, the farm price of eggs can be in a range of RM0.50 to RM0.58 per egg.

“The profit margin per egg at the wholesale and retail levels were recorded at RM0.04 and RM0.02, respectively,” he said.

Image for illustration purposes only. — Picture by PEXELS

Mohd Uzir said among the biggest components in the production cost of broiler chicken were poultry feed (65.1 per cent) and purchasing cost of day-old chick (16 per cent).

“The cost of poultry feed also differs according to the types. For broiler chicken, the average cost of poultry feed for the Starter type was RM132.04 per 50 kg, while for the Grower and Finisher types were RM129.71 per 50 kg and RM126.96 per 50 kg, respectively.

“Starter-type chicken feed is usually more expensive due to its higher nutrient content and suitability for chick growth,” he said.

For layer chicken, the average cost of poultry feed for Starter type was RM131.57 per 50 kg, while for Grower and Finisher types were RM117.08 per 50 kg and RM115.10 per 50 kg, respectively.

“During the study, the purchasing cost of day-old chick (broiler) in Malaysia recorded an average of RM2.12 and RM3.32 for a day-old chick (layer). The price of chick usually will change depending on the current market,” Mohd Uzir said.

He added the composition of production cost for the chicken eggs was 96.9 per cent of direct cost and 3.1 per cent of the indirect cost of which 76.2 per cent of the costs was the cost of poultry feed and 15.8 per cent was the utility and salaries and wages costs.

“The purchasing cost of day-old chick comprised of 2.2 per cent from the overall production cost of egg,” Mohd Uzir said.

The report of the special study also provided analyses by states, farm capacity, and farmers’ categories which were hoped could give a better picture of the production cost of chicken and egg scenario in Malaysia.

— Bernama

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