Why have chicken prices increased in Malaysia? (THIS IS THE PARAGRAPH TO EXTRACT INFO)

Chicken prices have been a hot topic in the local media recently, firstly with a ban on the export of chicken and the removal, and subsequent reintroduction, of a price ceiling set at RM9.40 per kg in Peninsular Malaysia. But why did chicken prices rise to begin with? You might be surprised to know the pandemic and Russian-Ukraine war are among the factors. 6 Ad served by Google Ad options Send feedback Why this ad? G) Here's a general rundown on events that led to all the clucking around chicken prices in Malaysia. 1. The pandemic Ads by Kiosked XM . Industry Leading Broker XM m The pandemic over the past two and a half years forced many Malaysians to stay at home. The poultry industry was also affected clue to a lack of workers, while transport and logistics became harder to manage. As such, chicken was in short supply in the market, as poultry companies could not provide enough meat to meet demand. This trend was true for much of the world, as sudden supply shortages for certain products such as toilet paper drove many to panicbuy. This stockpiling exacerbated the situation by threatening the already short supply. International transportation played a role here, too. As the whole world shut down, fewer imports of chicken from overseas meant local producers could not keep up with demand. Prices of global container freight also sharply increased by almost 6.5 times, from US$1,592 in December 2020 to US$10,361 last September. More on this below. As Russia is the world's biggest exporter of crude oil and second-biggest exporter of natural gas, the European Union banned imports when Moscow chose to utilise both to fuel the conflict in Ukraine. F M T freemalaysiatoday.com Global container freight prices remain expensive at US$7,635 as of May, compared with US$1,592 in December 2019.Both Russia and Ukraine account for nearly a third of the world's wheat production, while Ukraine provides about 16% of the world's corn production. Naturally, production and transportation have been severely strained due to the ongoing war. The conflict, therefore, caused the prices of these commodities to increase due to a global supply shortage. It has had an indirect effect on other global commodities, too, such as coal, palm oil, soybean and barley. For how this affects the prices of chicken, read on... 3. Increased transport prices Malaysia imports almost all of its livestock feed from overseas, which makes transporting them crucial to local chicken producers. But crude oil prices increased sharply by 44% from US$77 per barrel in December to US$112 per barrel last month; while natural gas prices increased even more, by 54% from US$3.70 in December to US$5.70 in July. This has increased the cost of transportation by at least 50% for most international transport and logistics companies. While global container freight prices have decreased from the beginning of the year, it still remains very expensive at US$7,635 as of May, compared with US$1,592 in December 2019 just before the pandemic. Higher crude oil and natural gas prices increase the cost of container freight, which in turn impact the price of livestock feed for chickens. 4. Prices of chicken feed rise Most of the chicken feed used by Malaysian chicken producers comes from corn, wheat, barley, and soybean. As mentioned above, a disruption in supply has led to increased prices of these commodities: corn prices rose by 28% from US$591 in December to US$756 last month, while wheat prices went up by as much as 41% from US$771 in December to US$1,088 in May. Crude oil prices have increased sharply from US$77 per barrel in December to US$112 last month. (AFP pic) Prices of soybean and barley have also been increasing, owing to the Russia-Ukraine conflict and higher transportation costs. Soybean prices increased by 27%, while barley prices rose by 32% from December to May.As the prices of these raw materials for chicken feed have increased, chicken producers, similarly, have to raise prices to keep afloat. So what happens next? As the Russia-Ukraine conflict continues, it is very likely that transportation and chicken-feed prices will remain high. The Malaysian government says it will review the ceiling on chicken prices after Aug 31 but, in the meantime, consumers could consider switching to other protein alternatives such as fish or tofu. Colonel Sanders is credited with kicking off our world's culinary history to a fantastic start with the creation of Kentucky Fried Chicken (KFC). He began working in the family business when he was just nine years old, and he quickly developed a passion for cooking as a result. It took him years to perfect the Original Recipe for his chicken, which consists of a secret blend of 11 spices and herbs that are pressurecooked to seal in the delicate flavours. The KFC Malaysia story started in 1973 with the opening of the company's first outlet on Jalan Tunku Abdul Rahman in Kuala Lumpur. There are currently over 600 KFC restaurants around the nation, providing Malaysians with delicious tasting chicken on a 365day basis. As Malaysia's number one fast food and leading quick service restaurant (QSR) brand, they are constantly striving to better serve their customers by providing them with wonderful moments, exceptional services, and Finger Lickin' Good cuisine. You can find out about their halal policy here. KFC Holdings (Malaysia) Bhd. runs over 500 KFC restaurants and approximately 35 RasaMas restaurants. The KFC Holding Group has over 52 Kedai Ayamas, making it the nation's first branded chicken and chicken-based retail chain. KFC Holdings (Malaysia) Bhd (KFCH) is a KFC franchisee in Malaysia, Singapore, Brunei, Cambodia, and India. KFCH is not just a fast-food chain, but also a large producer and processor of chicken, as well as a variety of other products and services. KFCH is a powerful major firm in Malaysia's commercial and retail market with a high reputation for good product. Below, you'll find the latest KFC menu 2022 with prices in Malaysia. Some items are menu KFC terbaru that might have just flew over your radar. Continue reading to know more about KFC menu Malaysia 2022 that you should know about if you are a KFC enjoyer. Please be noted that the menu prices varies with time and states (i.e. Sabah and Sarawak). If you want to find out more about each menu and the contents, you can visit the official website here. Read this article if you are interested in Nando's menu instead!Meals for One - KFC Box Meals MENU ITEM PRICE Snacker Box RM 12.49 Colonel Box RM 15.99 Stacker Box RM 23.99 Zinger Cheezy Box RM 20.49 Cheezilla Box RM 25.99 Signature Box - Classic RM 19.99 Original Box RM 19.99 Golden Egg Crunch Box Meal (new) RM 22.99Meals for One - KFC Chicken Meals MENU ITEM PRICE 2-pc Chicken RM 11.99 3-pc Chicken RM 17.49 1-pc Rice Combo RM 12.99 2-pc Rice Combo RM 16.99 1-pc Nasi Lemak KFC Combo RM 14.99 Zinger Fillet Nasi Lemak KFC Combo RM 16.49 2-pc Nasi Lemak KFC Combo RM 18.99 2-pc Combo RM 16.99 3-pc Combo RM 20.49 Golden Egg Crunch Box Meal RM 22.99 2-pc Golden Egg Crunch Combo RM 17.99 3-pc Golden Egg Crunch Combo RM 21.99Meals for One - KFC Burgers MENU ITEM PRICE Colonel Classic RM 7.49 Zinger Stacker RM 16.99 Zinger Cheezy RM 12.70 Zinger Cheezilla RM 18.99 Zinger Classic RM 11.99 Original Recipe Burger RM 11.49 Zero Chicken Burger RM 14.99 Colonel Classic Combo RM 11.99 Zinger Stacker Combo RM 20.49 Zinger Cheezy Combo RM 16.70 Zinger Cheezilla Combo RM 22.49 Zinger Classic Combo RM 15.99Original Recipe Burger Combo Golden Egg Burger RM 13.99 Golden Egg Burger Combo RM 17.99 KFC Family Meals MENU ITEM PRICE 5-pc Chicken RM 27.99 9-pc Chicken RM 47.99 15-pc Chicken RM 77.99 Variety Box A RM 54.99 Variety Box B RM 74.99 Variety Box C RM 89.99 5-pc Combo RM 39.99 9-pc Combo RM 59.99 15-pc Combo RM 87.99 5-pc Celebration Bucket RM 46.49 9-pc Celebration Bucket RM 72.99 15-pc Celebration Bucket RM 97.99KFC Sides and Snacks MENU ITEM PRICE 5-pc Broccoli Cheese Balls (new) RM 8.99 Cheezy Wedges (L) RM 6.49 Cheezy Popcorn Bowl RM 6.99 Loaded Potato Bowl RM 6.99 6-pc Nuggets RM 9.99 9-pc Nuggets RM 13.99 6-pc Nuggets Combo RM 14.99 9-pc Nuggets Combo RM 17.49 Nasi Lemak RM 3.70 Colonel Rice RM 3.70 Popcorn Chicken RM 10.99 Crispier Fries (R) RM 4.49Crispier Fries (L) RM 5.99 Whipped Potato (R) RM 3.49 Whipped Potato (L) RM 7.49 Coleslaw (R) RM 3.49 Coleslaw (L) RM 7.49 Wedges (R) RM 4.49 Wedges (L) RM 5.99 Hard Boiled Egg RM 2.00 Kari Atuk RM 3.50 Sambal Sauce RM 1.50 Spicy BBQ Sauce RM 2.00 Jalapeno Cheese Sauce RM 2.00 Whipped Potato Gravy RM 2.00 Life Chilli Sauce (Bottle) RM 4.00MENU ITEM PRICE (REGULAR) PRICE (LARGE) Pepsi Black RM 4.30 RM 4.70 Pepsi RM 4.30 RM 4.70 Mountain dew RM 4.30 RM 4.70 Mirinda Strawberry RM 4.30 RM 4.70 Mug Sarsapirilla RM 4.30 RM 4.70 Iced Milo RM 4.99 RM 5.99 Iced Lemon Tea RM 4.99 RM 5.99 Tropicana Twister Orange RM 4.99 RM 5.99 Nestle Lemonade RM 4.99 RM 5.99 Sjora Mango-Peach RM 4.99 RM 5.99 Hot Milo RM 4.50 Hot Premium Coffee RM 3.90 Hot White Coffee RM 4.50 Hot Tea RM 3.90Tropicana Twister Orange (355ml) RM 6.49 Pepsi Black (1.5L Bottle) RM 6.99 Revive (1.5L Bottle) RM 6.99 Mirinda Strawberry (1.5L Bottle) RM 6.99 - Lipton Ice Lemon Tea (1.5L Bottle) RM 9.99 Tropicana Twister Orange (1.5L Bottle) RM 9.99Read this news story about the market for raw Chicken in August 2022, "Why have chicken prices increased in Malaysia?" and consider the market for raw chicken in Malaysia. Also, consider a Kentucky Fried Chicken (KFC) fast food outlet in Kuala Lumpur whose price list is available here1. Market structure -- Argue which model of market structure best describes each of the following: (1) the market for raw chicken in Malaysia 2) the market of fried chicken outlets in Kuala Lumpur. [20%] 2.Profitability of raw chicken producers - Analyse how the prices of raw chicken increased in 2022 using the model that you identify in Question #1 and discuss the effects of this market change on the profitability of a typical raw chicken producer in Malaysia. [20%] 3.Price Ceiling and Welfare -- Analyse and discuss the effects of the price ceiling at RM9.40 per Kg on the welfare of raw chicken industry players. [20%] 4.Profitability of the KFC outlets -- Analyse and discuss the effects of the increase in chicken prices on the profitability of the KFC outlets in Kuala Lumpur using the model you identify in Question #1. [20%] 5. KFC's pricing policy -- Consider the prices of 2-piece chicken offered in the list above. Discuss whether using this pricing policy is profitable for KFC using the model that you identifyin Question #1. [20%]