16 AGRICULTURE AND FOOD SECURITY @ AGROBiz | May-June. 2025
16 AGRICULTURE AND FOOD SECURITY @ AGROBiz | May-June. 2025
Egg subsidy – industry responds
� Starting May 1, 2025, egg subsidies are halved to five sen per unit, with full removal by Aug 1- a major shift toward market-based pricing and fiscal consolidation.
� The government plans to introduce a new, reasonably priced egg grade and strengthen anti-profiteering enforcement to ease the transition for consumers.
� Producers and industry groups back the move, citing improved cost structures and a stable supply outlook. Poultry-related stocks rallied following the announcement
EGG REFORM: Caged hens at a commercial farm. Malaysia plans to end egg subsidies by August 2025 to support market sustainability.
MALAYSIA ' S decision to phase out price controls and subsidies on eggs by Aug 1, 2025, marked a significant shift in the government ' s subsidy retargeting policy aimed at fiscal consolidation and market sustainability.
Effective May 1, 2025, the price control on eggs will no longer be in effect, while the subsidy will be halved from 10 sen to five sen per unit.
According to the Ministry of Agriculture and Food Security( MAFS), the move was made after considering stabilised production costs and strong industry commit-
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ment to maintaining a " sufficient and guaranteed " supply.
" The government has also taken into account that prolonged price control and subsidy is unsustainable for the local egg-producing industry as well as the country ' s finances," MAFS said.
Between February 2022 and December 2024, nearly RM2.5 billion was spent on egg subsidies to alleviate the burden of rising feed costs following the pandemic and global conflicts.
To cushion the impact on consumers, MAFS announced plans to work with the Ministry of Domestic Trade and Cost of Living on intervention
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measures. These include launching a new egg grade at a " reasonable " price and increasing enforcement against profiteering.
CONSUMER IMPACT
The announcement sent poultry stocks climbing on Bursa Malaysia, with Teo Seng Capital Bhd surging over five per cent to RM1.02, and Leong Hup International Bhd rising 1.6 per cent to 62.5 sen.
CCK Consolidated Holdings Bhd gained 1.55 per cent to RM1.31, while Lay Hong Bhd and PWF Corporation Bhd also recorded gains of 4.7 per cent and 4.6 per cent, respectively.
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An analyst from Apex Securities noted that lifting price controls would allow producers like CCK, which receives roughly RM5 million in subsidies annually, equivalent to just 0.5 per cent of its revenue, to adjust prices in line with market costs.
The Federation of Livestock Farmers ' Associations of Malaysia also voiced its full support, stating that the move would help balance supply and demand. Its adviser, Datuk Jeffrey Ng Choon Ngee, assured that egg production would remain stable and ruled out a sudden price hike, though future prices would depend on feed costs.
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Bernas reduces imported rice price
SECURING STAPLES: The latest rice price revision aims to maintain affordability and strengthen the food supply chain.
THE price of imported white rice( Beras Putih Import or BPI) at all Padiberas Nasional Berhad( Bernas) warehouses in Peninsular Malaysia, Sabah, and Sarawak was adjusted to RM2,600 per tonne, effective mid-May this year.
This marked the second price adjustment following the reduction on Dec 1, 2024, when the price was lowered from RM3,000 to RM2,800 per tonne.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said: " This adjustment is the result of engagement sessions with Bernas, taking into account various current factors, including global market developments and the need to ensure the continuity of the country ' s food supply chain.
" This step clearly reflects the ongoing commitment of the Madani government, which is grounded in the principles of care and the well-being of the people, to ensure that the nation ' s staple food remains affordable, easily accessible, and sufficiently available."
He added that the Federal government ' s BPI subsidy programme for Sabah and Sarawak would continue as usual.
This achievement followed Bernas ' strategic move to diversify rice supply sources from countries such as Vietnam, Thailand and Myanmar, which helped reduce dependency on a single market.
" The Agriculture and Food Security Ministry will continue to monitor market developments and ensure that policies remain centred on the interests of the people and national food security," he said.
The revised price served as part of broader efforts to maintain stable food costs and protect the country ' s food supply resilience.- @ AGROBiz