Malaysia poultry farmers sell chicken below cost amid feed price pressures
Industry faces a mismatch between rising retail prices and farmgate losses
MALAYSIA – Malaysia’s poultry farmers are now selling chickens below production cost in an effort to clear stocks and manage oversupply, according to the Federation of Livestock Farmers Association.
Federation adviser Jeffrey Ng said feed costs have risen following the Middle East crisis, pushing overall production expenses up by between 5% and 7%.
He added that consumer demand for chicken and eggs has weakened due to market sentiment, leaving farmers with excess stock that cannot be held for long.
The situation has created a disconnect in the market where retail prices appear to be rising while farmers continue to sell at a loss due to high holding costs.
Traders across other parts of the food supply chain said they are currently absorbing some of the cost pressure rather than fully passing it on to consumers.
Malaysia’s Agriculture and Food Security Minister Mohamad Sabu said the government is engaging industry players to address ongoing cost and supply concerns affecting farmers and consumers.
He noted that the authorities recognise the financial strain facing livestock producers amid continuing disruptions in the sector.
Industry scale and cost structure
Malaysia maintains a high level of poultry self-sufficiency, with more than 98% of domestic chicken demand met locally and total production value exceeding RM11 billion (US$2.31 billion).
Production reached about 1.6 million tonnes of poultry meat in 2020, while egg output increased by 3.5% in the 2025/26 period despite uneven market conditions.
Average broiler production costs are estimated at around RM4.40 per kilogram (US$0.92), with feed accounting for 66% of total expenses and day-old chicks contributing about 19%.
The country’s poultry trade structure includes exports mainly to Singapore and Thailand, while imports continue to come from Thailand, China and Brazil despite strong domestic output.
Policy targets under the National Agrofood Policy (DAN 2.0) aim to raise poultry self-sufficiency to 140.2% by 2030, even as current production remains concentrated in Peninsular Malaysia under large-scale commercial systems.
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