BATU PAHAT, June 17 (Sin Chew Daily) — Consumers are urged to buy more chicken in a bid to save poultry farmers as the ex-farm price of chicken has dropped below its cost.

The poultry industry is facing up to RM200 million of losses in one month, said Federation of Livestock Farmers' Associations of Malaysia (FLFAM) honorary president Kwei Yew Tong.

He said the Movement Control Order 3.0 has affected the sale of fresh chicken which sees its ex-farm price continue to plunge.

The ex-farm price has dropped below its cost price now.

Demand for chicken dipped since the enforcement of MCO 3.0 as dine-in is not allowed and many are working from home.

Kwei, in a phone interview with Sin Chew Daily, said the cost price for chicken is RM5.60 per kilogram but the ex-farm price of chicken had plunged to RM3.80 per kilogram or RM1.80 below the cost.

"Sales of chicken have been down by 30% since the implementation of MCO 3.0. The price of fresh chicken has gradually dipped since then, until it is lower than the cost price. Poultry farmers are still selling despite incurring the losses," he said.

Based on the figures compiled by FLFAM, Kwei said a total of 1.6 million chicken are produced on a daily basis. Based on the average weight of a fresh chicken at 2.2kg, the daily production of chicken is 3.52 million kg.

"For every kilogram of chicken sold, poultry farmer is losing RM1.80. Farmers are losing RM6.336 million a day and RM200 million in a month," he said.

Kwei said if the situation were to continue until September, many small poultry farms would find it hard to sustain and may shut down. The entire industry may not be able to make it too.

"Consumers may no longer have fresh chicken to buy if small poultry farms are closed. This is not in favor of the government as it will not be collecting tax revenue."

Kwei called on consumers to buy more chicken now as the price is low. In a way, such move is also seen as saving poultry farmers so that they can continue with the business.