Chicken is Malaysia’s most consumed meat, making the poultry sector crucial for food security. In 2023, production reached about 1.54 million metric tonnes, meeting most domestic demand. However, Malaysia depends on imported soybean meal (~1.28 million tonnes MY23/24) and corn for feed, making production costs highly sensitive to global markets. Feed accounts for 60–70% of broiler production cost, so price swings directly impact farm-gate and retail chicken prices.

External factors such as the Russia–Ukraine war disrupted global grain and fertilizer supply, pushing up feed costs and causing volatility in Malaysian chicken prices, which have averaged RM9–RM10/kg in 2023–2024. Energy price hikes further increased production costs. Additionally, disease outbreaks like avian influenza can suddenly reduce supply, triggering price spikes. Exchange rate fluctuations also affect the landed cost of imported feed ingredients. Rising feed costs squeeze farmer margins and raise consumer prices, affecting low-income households most. Price instability can reduce public trust in food affordability, a key dimension of food security.

To safeguard food security, Malaysia needs a multi-layered response. In the short term, targeted subsidies or cash transfers should protect vulnerable households during price surges, combined with transparent reporting of feed imports, national chicken stocks, and price indices to guide policy decisions. In the medium term, efforts must focus on diversifying feed ingredients by encouraging the use of palm kernel cake, insect protein, and other agro-industrial byproducts, while also promoting local oilseed processing and building modest strategic reserves to buffer against global supply disruptions. Over the long term, the poultry industry should strengthen farm biosecurity and disease surveillance to prevent production losses, invest in research and development to improve feed conversion efficiency, and pursue regional trade cooperation to secure stable grain and soybean supplies during global crises.

A resilient poultry industry ensures stable, affordable chicken supply — vital for Malaysia’s food security and public health.

Written By,

Dr Suriya Kumari Ramiah

Senior Research Officer

Date of Input: 12/09/2025 | Updated: 12/09/2025 | s_hasimah