KUANTAN, Dec 23 — Domestic Trade and Cost of Living Deputy Minister Fuziah Salleh regards the action by five chicken feed manufacturers in forming a price-fixing cartel for poultry feed as the highest level of betrayal against Malaysia and its competition laws.
Their action has made it difficult to control chicken prices, and the government has had to provide a large subsidy to cover the chicken subsidy at the production level.
“The government has issued RM3.8 billion in subsidies to cover the cost of chicken and eggs from February 2022 to November, with 72.8 per cent of chicken production costs due to poultry feed.
“When there is a cartel controlling the price of chicken feed, it is difficult for the government to control the price of chicken at a set rate of RM9.40 per kg.
“It is difficult for the chicken rearers to get a lower price for poultry feed as these five companies are involved in 40 per cent of the chicken feed production,” she said.
Fuziah was speaking to the press after visiting a supermarket to monitor the implementation of the 2023 Christmas Season Maximum Price Scheme (SHMMP) today, accompanied by the ministry’s director-general of enforcement Datuk Azman Adam.
The government is committed to stopping the “cartel” practice and has allocated RM10 million to the Malaysian Competition Commission (MyCC) in Budget 2024 .
Yesterday, the media reported that five companies — Leong Hup Feedmill Malaysia Sdn Bhd, FFM Berhad, Gold Coin Feedmills (Malaysia) Sdn Bhd, Dindings Poultry Development Centre Sdn Bhd, and PK Agro-Industrial Products (M) Sdn Bhd — were fined a total of MYR415 million (US$89.6 million) for the “formation of a price-fixing cartel for poultry feed.”
MyCC said an investigation was conducted between November 2021 and June 2022 following suspicions the five companies had engaged in price-fixing agreements.
The investigation discovered distortion in the poultry feed market, with evidence of an “identical increment” in the increase of poultry feed prices among the companies between January 2020 and June 2022.
Regarding SHMMP, Fuziah said the most complaints received were during its implementation for the Chinese New Year celebration with 116 cases, followed by Aidilfitri (60 cases), Gawai Festival (18 cases), Deepavali (five cases), and one case during the Kaamatan Festival.
The most common complaint was over the failure of traders to display the pink price tags on controlled price items.
— Bernama
