KUCHING: As of September 2022, the average cost of producing chicken per kilogramme and an egg in Malaysia was RM6.53 and RM0.48 respectively.
The study, which was released by Department of Statistics Malaysia (DoSM) recently, revealed that the production cost for chicken broilers comprised 98.6 per cent of direct cost and 1.4 per cent of indirect cost, while the production cost for chicken egg was 96.9 per cent of direct cost and 3.1 per cent of indirect cost.
“Poultry feed and the purchasing cost of day-old chicks are among the largest components in the production cost for chicken broiler, accounting for 65.1 per cent and 16 per cent, respectively,” said the report.
“On the other hand, for chicken egg production, the cost of poultry feed accounts for 76.2 per cent of the costs, and the utility and salaries & wages costs account for 15.8 per cent.”
According to the study, the average cost of poultry feed for Starter, Grower, and Finisher types varied depending on the type of chicken.
For chicken broilers, the average cost of poultry feed for Starter type was RM132.04 per 50 kg, while the average cost of poultry feed for Grower and Finisher types were RM129.71 per 50 kg and RM126.96 per 50 kg, respectively.
For chicken layer, the average cost of poultry feed for Starter type was RM131.57 per 50 kg, while the average cost of poultry feed for Grower and Finisher types were RM117.08 per 50 kg and RM115.10 per 50 kg, respectively.
The study also found that the average purchasing cost of day-old chicks was RM2.12 for broilers and RM3.32 for layers, which is subject to change depending on the market.
Assuming a profit margin of 5 per cent, 10 per cent, and 20 per cent, the farm price of chicken per kilogramme can range from RM6.86 to RM7.84.
Additionally, the profit margin per kilogramme of chicken at the wholesale level was recorded at RM1.30, while the profit margin per kilogramme of chicken at the retail level was RM1.25.
For eggs, the average production cost was recorded at RM0.48.
Assuming a profit margin of 5 per cent, 10 per cent, and 20 per cent, the farm price of eggs can range from RM0.50 to RM0.58 per egg.
The profit margin per egg at the wholesale and retail levels were recorded at RM0.04 and RM0.02, respectively.
Although the increasing production cost of chicken and eggs has become a worry for farmers and industry stakeholders, the study provides a glimmer of hope by shedding light on the potential profits that can be gained.
The full publication of the study can be downloaded from the DoSM portal.
