Global food security: Malaysia bans chicken exports

Malaysia has banned chicken exports until local production and costs stabilise.

The ban, which will affect 3.6 million whole chickens sold overseas every month, is the latest sign of growing global food shortages.

Countries currently reeling from the effects of Russia’s invasion of Ukraine, extreme weather, and pandemic-related supply disruptions, scramble to shore up domestic supplies and tame food inflation.

Analysts say rising chicken prices in Malaysia are just the tip of the iceberg amid a surge in consumer food prices due to global food insecurity.

Apart from chicken, the supply of fish in the country has also fallen 70 per cent.

Prices have been capped since February at 8.90 ringgit ($2.03) per bird and a subsidy of 729.43 million ringgit ($166 million) has been set aside for poultry farmers.

Chicken feed typically consists of grain and soybean, which Malaysia imports. But the government is having to consider alternatives amid a global feed shortage.

Singapore’s national dish

Singapore is bracing for a shortage of its de-facto national dish, chicken rice, as major supplier Malaysia halts all chicken exports from Wednesday.

Restaurants and street stalls in the city-state are faced with hiking prices of the staple food or shutting down altogether as their supplies dwindle from neighbouring Malaysia, where production has been disrupted by a global feed shortage.

Singapore, although among the wealthiest countries in Asia, has a heavily urbanised land area of just 730 square km (280 square miles) and relies largely on imported food, energy and other goods. Nearly all of its chicken is imported: 34% from Malaysia, 49% from Brazil and 12% from the United States, according to data from Singapore Food Agency (SFA).

A plate of simply poached chicken and white rice cooked in broth served with a side of greens is a dish beloved by the country’s 5.5 million people and is usually widely available for about S$4 ($2.92) at eateries known as hawker centres.

Daniel Tan, the owner of a chain of seven stalls called OK Chicken Rice, said Malaysia’s ban will be “catastrophic” for vendors like him.

“The ban would mean we are no longer able to sell. It’s like McDonald’s with no burgers,” he said.

He added his stalls usually source live birds from Malaysia but will have to switch to using frozen chicken within the week and are expecting a “strong hit to sales” as customers react to the change in quality of the dish.

Singapore, although among the wealthiest countries in Asia, has a heavily urbanised land area of just 730 square km (280 square miles) and relies largely on imported food, energy and other goods.

Nearly all of its chicken is imported: 34% from Malaysia, 49% from Brazil and 12% from the United States, according to data from Singapore Food Agency (SFA).

A plate of simply poached chicken and white rice cooked in broth served with a side of greens is a dish beloved by the country’s 5.5 million people and is usually widely available for about S$4 ($2.92) at eateries known as hawker centres.

The SFA has said the shortfall can be offset by frozen chicken from Brazil and has urged consumers to opt for other protein sources like fish.

Rising prices for basic food items have already fuelled protests in countries like Argentina, Indonesia, Greece and Iran.

Reuters/Zainab Sa’id