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Wholesale cooperatives may be solution to ease rising prices of goods - PM

BERA: Cooperatives across the country can play a role in helping ease the burden faced by the people by purchasing essential goods in bulk before offering them at a lower price to consumers, said Prime Minister Datuk Seri Ismail Sabri Yaakob.

He said the setting up of a "special wholesale cooperative" will allow cooperatives to buy in bulk (from special wholesale cooperatives) before selling the essential goods in smaller quantities to their respective members or the public.

"I was told that there are about 1,005 cooperatives in the country. The cooperatives usually buy from wholesalers in small quantities — for example, rice packets ranging between 100 and 200 a month.

"With the 'special wholesale cooperatives', they (cooperatives) can purchase in bulk at a discounted price and offer to consumers at a cheaper rate," he said in his speech when opening the Bera smallholders cooperatives annual general meeting at the Nurulsallam mosque hall in Kampung Batu Papan near here today.

Ismail Sabri, who is the Bera member of parliament, said he hoped that the proposal would become a reality after further discussions with the relevant parties including Tan Sri Noh Omar (Entrepreneur and Cooperative Development Minister), Cooperatives Commission of Malaysia (SKM) and National Cooperative Movement of Malaysia Bhd (Angkasa).

"I hope SKM can discuss with Angkasa or others to identify the special wholesale cooperatives that can assist in supplying essential items to these cooperatives.

"Cooperatives can play a vital role to help tackle the current price hike of essential items which has been a burden on the people," he said.

Meanwhile, he said the Agriculture and Food Industries Ministry would import frozen chicken as a temporary measure to stabilise the prices here.

"Once there is a huge supply then the price at the retail level will stabilise. The chicken price has never reached as high as RM9.50. I remember when serving as the Domestic Trade and Consumer Affairs minister the price was controlled around RM7.50.

"This time the price hike could not be avoided. Even if we do not import chicken, we purchase poultry feed including maize from overseas so that is a major cost involved in producing the chicken, prompting the price hike," he said.

Ismail Sabri said he was told by chicken breeders that during the movement control orders, demand was lower as there were no major events, such as kenduri or gatherings, restaurants were closed and catering businesses were slow.

"To avoid losses, the breeders decided to lower their poultry production but now there seems to be more demand than supply. Now to stabilise the price, the government will have to import the chicken. When there is an excess in supply, the price will drop," he said.

Elaborating further, Ismail Sabri expressed his regret on an independent preacher who claimed that chicken processing plants in Thailand and China were exporting expired, non-halal chickens to Malaysia.

"The individual involved is a religious preacher. I have served as the Agriculture and Food Industries Minister, and when we approve to import chicken, we cannot blindly purchase it, instead the Department of Islamic Development (Jakim) will send their team to check.

"We only import the chicken when Jakim issues the halal certification. Jakim has certified the processing plants in Thailand and China. We not only ensure halal standards but ensure the plants comply with hygiene and proper transportation (delivery)," he said.

Citing an example, Ismail Sabri said there was once when he wanted to import cattle from Sudan which has a huge Muslim population, but when a Jakim team went to the African country to inspect the plant, they realised it did not comply with certain hygiene standards and decided not to bring in the cattle.

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