Minister Orders Probe Into Egg Price Increase Claims

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Agriculture and Food Security Minister Mohamad Sabu has ordered an investigation into the claim that several suppliers have increased the prices of eggs.
When contacted, Mohamad said his ministry will respond as soon as the matter is verified.
“I have instructed the Veterinary Services Department to investigate this claim and give their response immediately to these complaints.
“I have also asked the Agriculture and Food Security Ministry to contact the poultry farmers association for feedback,” he told Malaysiakini.
This was in response to allegations that an egg farm issued a memo saying the prices of eggs would be increased by as much as 60 sen per tray.
The memo dated July 9, which Malaysiakini sighted, stated that the increase will affect all types of eggs.
Agriculture and Food Security Minister Mohamad SabuMalaysiakini has attempted to contact the farm involved and is awaiting its response.
Previously, the government said it will continue subsidies for poultry farmers and egg suppliers past June 30, which was the original expiry of the subsidies.
Egg cartel
Meanwhile, an industry player who declined to be named said the memo from the farm may be false.
“We are still facing an egg shortage but the government is closely monitoring the prices.
“Hence, it is impossible for the farm to increase the prices of eggs. This may be the work of the egg cartel,” the source said.
According to the source, the egg cartel refers to those who buy eggs from farms in quantities beyond their need to manipulate market prices.
After their bulk purchase, these people will re-sell the eggs to small wholesalers at higher prices with the excuse that the farms have increased the prices.
“Such wholesalers also always control the purchase of eggs directly from the farm so that other small-scale wholesalers can only buy from them at a price they have set.
“This is one of the reasons for the shortage and increase in the prices of eggs in the market,” the source added. - Mkini

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