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PREVENT profiteer (profiteering) DURING FESTIVE SEASON
FRIDAY, September 17, 2010 11:09
On every festive season, consumers often face higher prices for basic food such as chicken. In the first week of the fasting month this year, the price of chicken rose from the price of RM 5.50 a pound (standard chicken) to the price of RM 7.00 - RM 7:50 a kilo. In some places the price was up to RM 9.00 a pound.
Chicken price increase faced not only in the Klang Valley but throughout the country. The price of chicken in Batu Gajah, Perak reported RM 7:50 per kilo, in Bahau, Negeri Sembilan price is RM 7.00 per kilo and in Kg. Koh, Sitiawan reported price per kilo RM 7:50.
Federation of Livestock Farmers Associations of Malaysia (FLFAM), reported that there are three factors why the price of chicken rose during the festive season this year is a prolonged hot weather is causing pain in the chicken, the ban on grain sales by Russia, which lead to increased feed prices and the factors increased demand.
Even if we take into account these factors, prices can still be considered as chicken sold at a level that is too high. It is clear that certain party in profits over the festive season.
The practice of profiteering in this is not new. In each year during the festive season sales will take the opportunity to reap excessive profits and the user, low-income consumers especially will face hardship.
According FLFAM on each day of 1.4 - 1.5 million chickens are sold to consumers.
Who are the parties seeking excessive profits? Does this practice occur in the farmers, at the wholesale or retail level? Clearly, no party was willing to admit that they are taking advantage of the festive season and then blame the other party.
Which is more important for us as consumers is what should be done by the authorities and users itself to ensure a certain party does not take advantage of the festival.
FOMCA suggest some preventive measures at festive seasons to come
FAMA should continue to intervene in the market during the festive season. As the festive season FAMA should buy chicken from farmers and sell directly to retailers by set selling price. Because they are chicken supplier and find out the actual price, they can set margins and so the selling price of chicken.
FLFAM authorized or chicken and an opportunity to sell directly to consumers at the festival.
The governments announced a price ceiling in the festive season, and enforce these prices.
As during term actions the government should ensure that at each stage of the food supply chain (food supply chain) there is open competition. In the food chain should not have any deal in the market or to benefit certain parties through licensing or AP or sales practices are not ethical. Negative practices will allow certain parties to manipulate the market price. Open competition will ensure that consumers will be price and best quality.
As a long-term measure, FAMA should increase and strengthen the farmers' market system throughout the country; this will enable farmers and breeders to sell their produce directly to consumers. In the Farmers' Market both farmers and consumers gain because the two sides to the best price.
Government should also invest in agriculture to reduce food imports and ensure food security in the long term. Users also should be willing to pay more for food to ensure that the food industry in Malaysia will become a viable and sustainable one.
Users should be aware that not only is important in food prices, food security (food security) should also be given priority.
Dato 'Paul Selvaraj
CEO FOMCA
PREVENT profiteer (profiteering) DURING FESTIVE SEASON
FRIDAY, September 17, 2010 11:09
On every festive season, consumers often face higher prices for basic food such as chicken. In the first week of the fasting month this year, the price of chicken rose from the price of RM 5.50 a pound (standard chicken) to the price of RM 7.00 - RM 7:50 a kilo. In some places the price was up to RM 9.00 a pound.
Chicken price increase faced not only in the Klang Valley but throughout the country. The price of chicken in Batu Gajah, Perak reported RM 7:50 per kilo, in Bahau, Negeri Sembilan price is RM 7.00 per kilo and in Kg. Koh, Sitiawan reported price per kilo RM 7:50.
Federation of Livestock Farmers Associations of Malaysia (FLFAM), reported that there are three factors why the price of chicken rose during the festive season this year is a prolonged hot weather is causing pain in the chicken, the ban on grain sales by Russia, which lead to increased feed prices and the factors increased demand.
Even if we take into account these factors, prices can still be considered as chicken sold at a level that is too high. It is clear that certain party in profits over the festive season.
The practice of profiteering in this is not new. In each year during the festive season sales will take the opportunity to reap excessive profits and the user, low-income consumers especially will face hardship.
According FLFAM on each day of 1.4 - 1.5 million chickens are sold to consumers.
Who are the parties seeking excessive profits? Does this practice occur in the farmers, at the wholesale or retail level? Clearly, no party was willing to admit that they are taking advantage of the festive season and then blame the other party.
Which is more important for us as consumers is what should be done by the authorities and users itself to ensure a certain party does not take advantage of the festival.
FOMCA suggest some preventive measures at festive seasons to come
FAMA should continue to intervene in the market during the festive season. As the festive season FAMA should buy chicken from farmers and sell directly to retailers by set selling price. Because they are chicken supplier and find out the actual price, they can set margins and so the selling price of chicken.
FLFAM authorized or chicken and an opportunity to sell directly to consumers at the festival.
The governments announced a price ceiling in the festive season, and enforce these prices.
As during term actions the government should ensure that at each stage of the food supply chain (food supply chain) there is open competition. In the food chain should not have any deal in the market or to benefit certain parties through licensing or AP or sales practices are not ethical. Negative practices will allow certain parties to manipulate the market price. Open competition will ensure that consumers will be price and best quality.
As a long-term measure, FAMA should increase and strengthen the farmers' market system throughout the country; this will enable farmers and breeders to sell their produce directly to consumers. In the Farmers' Market both farmers and consumers gain because the two sides to the best price.
Government should also invest in agriculture to reduce food imports and ensure food security in the long term. Users also should be willing to pay more for food to ensure that the food industry in Malaysia will become a viable and sustainable one.
Users should be aware that not only is important in food prices, food security (food security) should also be given priority.
Dato 'Paul Selvaraj
CEO FOMCA
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