The government recently removed the egg subsidy, making people worry that egg prices will go up. But looking at the market conditions, prices may not increase much. Here’s why:

Cheaper Feed for Chickens

Egg production depends on corn and soybean, which chickens eat. Corn is the main feed, while soybean provides protein. Right now, the prices of both corn and soybean are falling because China is buying less from the United States, one of the biggest producers of these crops. With cheaper feed, egg production costs may stay low.

Strong Ringgit Helps

Malaysia buys corn and soybean from other countries, and prices are affected by the exchange rate. A stronger Ringgit makes imports cheaper, helping to keep feed costs low. This means egg producers can continue to sell eggs at reasonable prices without big losses.

No More Price Control

Before, producers had to sell eggs below cost and get government subsidies. Now, with the subsidy gone, they can sell eggs at a fair price instead of losing money. This removes the pressure on producers and allows them to operate more sustainably.

Investors Shifting to Local Markets

Another trend is deglobalization, where investors focus on local businesses instead of global ones. This protects companies from worldwide problems. Poultry stocks may become good investments because eggs are a daily necessity, meaning steady demand.

Cheaper feed prices, a strong Ringgit, and price flexibility help producers manage costs. At the same time, investors may find poultry stocks attractive as businesses shift toward local consumption markets. Instead of a crisis, Malaysia’s poultry industry could become stronger and more stable.