Egg suppliers sell assets to stay afloat: Report

PETALING JAYA: Egg producers have decided to mortgage their assets to maintain their operations and pay off debts, The Malaysian Insight reports.

They said this was because while production costs continue to rise, the ceiling price set by the government is too low for producers to turn a profit.

Federation of Livestock Farmers Associations of Malaysia deputy president Lee Yoon Yeau said Malaysians consume 27 million to 28 million eggs a day, with grades A, B and C accounting for 90% of their consumption, while Omega eggs only accounts for 10%.

While it only takes 30 days to raise chicken, it takes seven months to produce eggs, which is compounded by the high daily volume, he reportedly said.

Lee said feed such as corn and soybean cost 80% more but eggs are being sold below market price while producers only get a three sen subsidy.

If this situation continues, smaller producers will be driven out of business, he said.

Meanwhile, Mydin Ameer Ali Mydin, managing director of supermarket chain Mydin said there is only a 30% supply of eggs in the market.

“I’ve mentioned the shortage many times, but the authorities don’t appear to be addressing the problem,” he said.