Limited Supply and Increased Costs Expected Following Export Ban Lift
Fresh broiler chickens from Malaysia have once again made their way to supermarkets and wet markets in Singapore, following the lifting of Malaysia’s export ban on October 11, 2022. However, consumers can expect the price of these chickens to rise by approximately 25% compared to the pre-ban period, according to industry suppliers.
Despite the resumption of exports, suppliers are uncertain about the impact on their businesses. Singapore is expected to receive half the number of chickens it did before the ban, with the monthly supply set at 1.8 million chickens, down from the previous 3.6 million. This limited supply could lead to even higher prices, with some estimates suggesting a further increase of 30 to 40%.
Retailers like FairPrice have reported low stocks of Malaysian chicken, with around 10 of their outlets indicating limited availability. A spokesperson from FairPrice stated that they are working closely with suppliers to restore supply lines but cautioned that more details would be shared once they have a clearer timeline. The company is also diversifying its sources to mitigate any future supply disruptions.
Some businesses, such as Katong Catering, which uses chicken for dishes like curry chicken and chicken rendang, hope that the return of fresh chicken may reduce demand for frozen alternatives, potentially bringing prices down for those products. However, many have noted that the public has become accustomed to the lower prices of frozen chicken, which may impact consumer demand for the newly available fresh chicken.
A quieter market day on October 14 saw fewer customers at fresh chicken stalls, a trend attributed to the celebration of Guan Yin’s third birthday, leading many to opt for vegetarian meals. It is possible that the lower demand also reflects a shift in consumer habits towards cheaper frozen chicken.
The export ban on Malaysian broiler chickens was initially imposed on June 1, 2022, due to a national chicken shortage in Malaysia. At the time, Singapore relied on Malaysia for about one-third of its chicken supply. As the ban persisted, Singapore began sourcing chicken from alternative countries like Thailand and Indonesia. Although restrictions eased in June to allow the export of some other types of chicken, the full resumption of broiler chicken exports was not realised until October 2022.
