Risky To Go Into Chicken Business Nafas And Angkasa Told

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Former deputy agriculture and agro-based minister Sim Tze Tzin says the poultry farming sector is already crowded. (Bernama pic)GEORGE TOWN: The government’s decision to push two statutory groups into chicken farming is a risky and possible loss-making move, Bayan Baru MP Sim Tze Tzin said.
The former deputy agriculture and agro-based minister said the poultry farming sector was already crowded, and the profit margins were small with chicken prices primarily low and controlled.
Recently, the prime minister announced that the National Farmers Organisation (Nafas) and Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa) would go into poultry and corn farming, aiming to produce 174 million birds a year to address the chicken shortage crisis.
Sim said while he welcomed the government’s move to invest in agriculture, he was concerned about the contributions of eight million members of Nafas and Angkasa.
“The members expect a windfall from their investment, as Nafas and Angkasa hold hundreds of millions of ringgit in their contributions. A detailed study before getting into this venture would safeguard the members’ best interest,” he told FMT.
He said that with chicken supply already at a 105% self-sufficiency rate (SSR), Nafas and Angkasa should go into other products that have yet to hit the SSR, such as padi (70% in SSR), ruminant farming (20%), dairy cow farming (50%) and vegetable farming (60%).
He also said that if Nafas and Angkasa obtained free government land and cut through red tape to get their projects up and running, they would be doing so at the expense of smaller farmers.
“Smaller farmers who have toiled for years are still repaying loans and other costs. This would surely lead to an unlevel playing field and cause them to fold.
“What this means is we will lose more farmers. We must remember that fewer farmers means less food on our plates,” he said.
According to Prime Minister Ismail Sabri Yaakob, Nafas plans to control 20% of the poultry market by producing 144 million chickens a year, while Angkasa will produce as many as 30 million chickens a year.
Nafas has set its sights on 12,140ha in Kelantan and Terengganu, previously used to plant tobacco, to convert into corn farms. Corn is a key component of feed meals for chickens.
Angkasa has identified 4,000ha across the country that could churn out five tonnes of corn and reduce imports by 20% over the next five years. - FMT

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