Market Review and Trends
Food Crisis and Protectionism- Boom for the Cold Storage Industry
By Something About Finance  •  June 2, 2022
Contributed by: The Big Fat Whale The recent ban on exporting live chickens- 3.6 million a month- from Malaysia to Singapore has been unprecedented. It shows the vulnerabilities of the supply chain issues for a country like Singapore which is highly dependent on others for their food and energy sources. The current situation is due to the cap by the Malaysian government on chicken prices at RM8.90 per kg since Feb 5, 2022, which has led to losses or minuscule margins for the chicken breeders. This has affected the supply of chickens as some would rather not breed given a loss-making situation where costs of breeding have shot up due to the world's inflationary environment. The government did try to cushion and provided support to the breeders through a subsidy of RM730 million. However, to date, only RM50 million have been paid out. The ban on Malaysia's export to Singapore could help stabilise the prices of...
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By Something About Finance
Welcome to My Blog. Hoping to share and learn from others on finance related topics. Let's embark on the journey towards financial freedom. Currently, I am an appointed representative (Equities and Futures Broker) with an established brokerage firm in Singapore. I deal mainly with Equities, Futures and Forex.
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