Malaysia’s export ban affects Singapore’s “national dish” chicken rice
Malaysian Prime Minister Ismail Sabri announced last week that the export ban will be implemented on June 1 until domestic prices and production stabilize. In addition to enacting the export ban, Malaysia also canceled the import license of chicken and other food products to increase supply and curb price increases. This ban will have the greatest impact on Singaporeans who have chicken rice as their national dish, thus triggering a great deal of concern in the Singaporean media about the shortage of chicken in the country. The Union-Tribune reported on June 1 that Malaysia had suspended the export of live chickens, and operators of white chicken rice with fresh chickens as the main ingredient had to improvise, or switch to frozen chicken to sell chicken fried steak or roast chicken, or to sell other cooked food. There are also some stall owners who choose to suspend their business. The Straits Times reported that chicken sellers predicted that the price of chilled chicken could rise by 30%. The Singapore government has called on people to buy frozen chicken or other meat as an alternative, and the government is also looking for new import channels
A number of foreign media outlets have also reported on the incident. According to the Associated Press, about one-third of Singapore’s imported poultry comes from Malaysia, and about 3.6 million live chickens are exported from Malaysia to Singapore each month for domestic slaughter and chilling. Before the ban took effect, Singaporeans rushed to buy fresh chicken. Some fresh markets and supermarkets are already sold out of poultry products. According to an article published by CNN on June 2, the ban will hit Singaporeans hard, as chicken and rice lovers say the frozen meat will not be able to replace the taste and texture of fresh meat.
In fact, chicken, the world’s most consumed and relatively affordable meat, is experiencing a price hike frenzy under the influence of multiple factors including geopolitics, inflation and trade protectionism.
According to the U.S. Department of Agriculture, sales prices for both boneless chicken breasts and whole chickens in the U.S. broke through the extreme in nearly a decade, and the price of a dozen eggs at $2.52 climbed to the highest in nearly five years. As meat becomes more expensive, CNN reports that U.S. residents may need to find alternatives to grilled meat in order to save money, with some preparing to replace steak and chicken with pasta pizza. Data site indexmundi revealed that the price of chicken in Malaysia has soared 60.3 percent in the past six months, from 9.77 ringgit per kilogram to 15.66 ringgit, and there is a shortage of chicken supply. And Singapore’s chicken prices rose 10.39% in April. Industry insiders predict that the price increase of chicken will remain between 4% and 6%. In Europe, chicken prices are also rising in some countries, for example, the price of a chicken in the United Kingdom rose by about 8% compared to the end of last year.
Why it is difficult to eat chicken?
In fact, for Europe and the United States, the rise in chicken prices is a microcosm of the dramatic inflation, but also a link in the chain effect of rising prices.
The latest round of data released in many European countries show that inflation is staying high. The British Bureau of Statistics (ONS) released a monthly report showing that in April, the Consumer Price Index (CPI) soared 9% year-on-year, much higher than the 7% in March.CPI data in the U.S., Germany, France and other countries also continue to be in a dangerous state.
Under the gloom of inflation, the cost of feed, transportation and other costs are rising, and the price of chicken has gone up. Other processes associated with chicken production are increasing in price, Forbes.com notes. For example, a nationwide driver shortage in the U.S. has led to a 20 percent increase in the price of road transportation, and rail transportation is also facing the impact of rising diesel fuel. Chicken processing plants need to use natural gas for production, and the cost of gas has likewise doubled. Labor costs have also risen by 20 percent.
In addition to this, according to Reuters and The Guardian reported on June 1, the Russia-Ukraine conflict has exacerbated the global food price hike, chicken feed mainly consists of grains and soybeans, Malaysia through imports to obtain these raw materials. Currently, the global feed is facing a shortage, the Malaysian government has to consider alternative programs, the decline in feed quality has led to a slowdown in poultry growth, which affects the entire supply chain, leading to higher chicken prices. Currently, Malaysia is the latest country to introduce policies to protect its food supply. Previously, in May, India had issued a ban on wheat exports and restricted sugar exports in response to rising domestic food prices and food security.
By Josie
