KUALA LUMPUR: The average prices for all Grade A-C eggs in October were above the retail price controls for eggs in Malaysia.
This was partly due to continuous shortages of eggs in Malaysia, causing higher prices, according to MIDF Research.
Meanwhile, chicken prices across most states in Peninsular Malaysia were selling at prices below the price control of RM9.40 per kg in October.
The government removed price control and subsidies for chicken effective from Nov 1 while price control and subsidies for chicken eggs continue.
"Based on our channel check, the actual farm price for live birds does not recognise the removal of subsidies after the price control lifted. Instead, the farm price live birds were selling at a lower level, which closely follows the market supply and demand dynamics," MIDF Research said.
Meanwhile, the firm said normalising corn prices could offset the price reversal in soybean meal.
"While soybean meal prices reversed its upward trend in November 2023, we believe that the price increase is manageable. Given that soybean meal contributed only 19-32 per cent of the total chicken feed and corn contributed 55-69 per cent of the total chicken feed, we anticipate that lower corn prices will offset the recent surge in soybean meal prices.
"Nevertheless, both soybean meal and corn prices are still trading below the two-year peak level. This is a positive note as it indicates continuously low animal feed input costs going forward, thereby lowering production costs and improving gross profit margins and earnings," MIDF Research added.