Malaysian Chickenomics - does not make economic sense ..
#1

A chicken farmer produces 100 chickens in a village.
The demand for the village is only 50 at price is selling. He sells 50 in his own village and 50 to neighboring village. Win win win everyone gets their chicken farmer get to make some money and life is great.

One day there is chicken feed shortage farmer cost double and he has to double the price of his chicken. No choice. Villagers not happy. So populist village chief step in to impose price cap. Now farmer can only sell at old price cannot increase price. Farmer going to lose money and his one year effort to breed chicken not properly compensated. He decided to sell more chicken to neighboring village 80 instead of 50 because he could get higher price. Now the village only has 20 chickens resulting in shortage.

Village chief got angry at the farmers accusing them of being greedy. He bans them from exporting the chickens to neighboring village forcing them to sell all chickens at the home village.

But the normal demand at home is only 50 chickens so to clear all their chickens farmers  have to slash prices and lose money. The farmers hurt by losses decided to leave the industry and do pig farming instead and chicken production falls.

The following year only 25 chickens were produced and the demand was 50. The village chief now has to fix price and ration the chicken or allow the price to rocket so that chicken becomes expensive and demand falls to the supply.

Problem with price controls and export restrictions is they don't address the root cause and causes long term problems. You may fix the problem for a few months but it comes back as a bigger problem.

I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#2

What a nice words.
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#3

..

The Govt subsidizing chicken breeders to lower food prices and benefitting the country's citizens is correct - nothing wrong with that..

But the very moment, when a foreign country starting to exploit the loophole and benefitting from such  handouts then, rightly or wrongly, something  need to be done.

As You are helping someone else to lower food prices, and feeding another country's  population.

You've shot yourself in the foot
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#4

(04-06-2022, 08:12 AM)sgbuffett Wrote:  A chicken farmer produces 100 chickens in a village.
The demand for the village is only 50 at price is selling. He sells 50 in his own village and 50 to neighboring village. Win win win everyone gets their chicken farmer get to make some money and life is great.

One day there is chicken feed shortage farmer cost double and he has to double the price of his chicken. No choice. Villagers not happy. So populist village chief step in to impose price cap. Now farmer can only sell at old price cannot increase price. Farmer going to lose money and his one year effort to breed chicken not properly compensated. He decided to sell more chicken to neighboring village 80 instead of 50 because he could get higher price. Now the village only has 20 chickens resulting in shortage.

Village chief got angry at the farmers accusing them of being greedy. He bans them from exporting the chickens to neighboring village forcing them to sell all chickens at the home village.

But the normal demand at home is only 50 chickens so to clear all their chickens farmers  have to slash prices and lose money. The farmers hurt by losses decided to leave the industry and do pig farming instead and chicken production falls.

The following year only 25 chickens were produced and the demand was 50. The village chief now has to fix price and ration the chicken or allow the price to rocket so that chicken becomes expensive and demand falls to the supply.

Problem with price controls and export restrictions is they don't address the root cause and causes long term problems. You may fix the problem for a few months but it comes back as a bigger problem.
Actually it does!

Notice the Malaysian govt have been subsidising the cost of chicken ... now Malaysian govt too poor no money - what they do is stop subsidising buy this will lead to increase in price of chicken - but if ban the export than chicken farmers will have excess and this will arrest the increase in price of chicken  ....
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#5

(04-06-2022, 08:30 AM)Scythian Wrote:  ..

The Govt subsidizing chicken breeders to lower food prices and benefitting the country's citizens is correct - nothing wrong with that..

But the very moment, when a foreign country starting to exploit the loophole and benefitting from such  handouts then, rightly or wrongly, something  need to be done.

As You are helping someone else to lower food prices, and feeding another country's  population.

You've shot yourself in the foot

Such problems are solved by export tax so that govt take back subsidy if chicken is exported.

It is not solved with ban.

I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#6

(04-06-2022, 08:35 AM)sgbuffett Wrote:  Such problems are solved by export tax so that govt take back subsidy if chicken is exported.

It is not solved with ban.
Perceived to be..

There's a global food shortage
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#7

on surface make no sense.
either.
gain political points or
behind the scene got some bargain going on. want but cannot gain so give you problem.

do not give in. their internal political pressure will collapse their evil plan.
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#8

(04-06-2022, 08:35 AM)sgbuffett Wrote:  Such problems are solved by export tax so that govt take back subsidy if chicken is exported.

It is not solved with ban.


So, you are indicating that Malaysia is the only country in the world producing chicken.

Why Singapore cannot find and import cheaper chicken elsewhere?

Case closed
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#9

(04-06-2022, 08:40 AM)Scythian Wrote:  So, you are indicating that Malaysia is the only country in the world producing chicken.

Why Singapore cannot find and import cheaper chicken elsewhere?

Case closed

Singapore can find frozen chicken from elsewhere 
Malaysian farmers breed chickens for export also.

I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#10

(04-06-2022, 08:43 AM)sgbuffett Wrote:  Singapore can find frozen chicken from elsewhere 
Malaysian farmers breed chickens for export also.

Go and look for cheaper live chicken instead
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#11

(04-06-2022, 08:12 AM)sgbuffett Wrote:  A chicken farmer produces 100 chickens in a village.
The demand for the village is only 50 at price is selling. He sells 50 in his own village and 50 to neighboring village. Win win win everyone gets their chicken farmer get to make some money and life is great.

One day there is chicken feed shortage farmer cost double and he has to double the price of his chicken. No choice. Villagers not happy. So populist village chief step in to impose price cap. Now farmer can only sell at old price cannot increase price. Farmer going to lose money and his one year effort to breed chicken not properly compensated. He decided to sell more chicken to neighboring village 80 instead of 50 because he could get higher price. Now the village only has 20 chickens resulting in shortage.

Village chief got angry at the farmers accusing them of being greedy. He bans them from exporting the chickens to neighboring village forcing them to sell all chickens at the home village.

But the normal demand at home is only 50 chickens so to clear all their chickens farmers  have to slash prices and lose money. The farmers hurt by losses decided to leave the industry and do pig farming instead and chicken production falls.

The following year only 25 chickens were produced and the demand was 50. The village chief now has to fix price and ration the chicken or allow the price to rocket so that chicken becomes expensive and demand falls to the supply.

Problem with price controls and export restrictions is they don't address the root cause and causes long term problems. You may fix the problem for a few months but it comes back as a bigger problem.

Your assumption of 100 chicken is dead wrong. There is a real shortage of chicken over there as farmers are no longer producing 100 chicken. They are producing probably just around 40 chicken which is 60% less than before because chicken farmers are getting lesser as they prefer to go city or overseas like Singapore to work. The pandemic lock down is also a major cause. Thus the shortage is real and eerie and your chickenomics is completely illogical............. Rolleyes

 Thinking is difficult, that's why most people judge
                    Carl Jung
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#12

(04-06-2022, 08:35 AM)sgbuffett Wrote:  Such problems are solved by export tax so that govt take back subsidy if chicken is exported.

It is not solved with ban.

Such a simple item like "chicken" also becomes a major problem

It shows that Singapore leaders are lazy, too care free and no foresight.

Which other countries have chicken problem?
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#13

In March 2020, Minister Chan Chun Sing told Singaporeans that over the years, The Govt is able to find all sorts of alternative sources of food supply. 

Singapore will never exposed to any restriction from any one country or in danger of shortage food supply.

Now, everyone is talking about no chicken rice for lunch.
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#14

(04-06-2022, 08:54 AM)Huliwang Wrote:  Your assumption of 100 chicken is dead wrong. There is a real shortage of chicken over there as farmers are no longer producing 100 chicken. They are producing probably just around 40 chicken which is 60% less than before because chicken farmers are getting lesser as they prefer to go city or overseas like Singapore to work. The pandemic lock down is also a major cause. Thus the shortage is real and eerie and your chickenomics is completely illogical............. Rolleyes

Why was there a chicken shortage in Malaysia in the first place ...it is because of the price caps. Because of the price caps farmers could not make as much profits when price of feed qebt up and cut production.

Plse get your logic and sequence correct

I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#15

(04-06-2022, 09:03 AM)Scythian Wrote:  In March 2020, Minister Chan Chun Sing told Singaporeans that over the years, The Govt is able to find all sorts of alternative sources of food supply. 

Singapore will never exposed to any restriction from any one country or in danger of shortage food supply.

Now, everyone is talking about no chicken rice for lunch.

Chicken rice is unhealthy. Eat something else lah.
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#16

(04-06-2022, 08:44 AM)Scythian Wrote:  Go and look for cheaper live chicken instead

Christmas Islands!
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#17

case closed
Gov gives subsidy mony to people
Breeders have to find their ways
Can they juggle such dat pins stay in the air
losing market no ma-in2 one.
when the reverse true u cannot sell into the market in Singapore
gone to someone else
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#18

(04-06-2022, 08:56 AM)Scythian Wrote:  Such a simple item like "chicken" also becomes a major problem

It shows that Singapore leaders are lazy, too care free and no foresight.

Which other countries have chicken problem?

My posting has nothing to do with Singapore govt as we simply it mport the chicken when Malaysia sells it 

The article is how Malaysia tries to solve the problem is causing more problems to thenselves.

Singapore has frozen chicken as it cannot import live chicken over long distances. We just make do with frozen chicken. No big deal.

It's in mpractical to try to get fresh chickens from too far away. Understand?

I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#19

Not true u must eat frozen chickens over long distance
just like we import vegetables from Taiwan when Malaysian veg got pesticides.
Batam is a good place to rear chickens
i volunteer to accompany 'chickens'.
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#20

..
Malaysians breeding chicken to make nasi lemak, not for export.

Last minute, it's too late to find alternative sources
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#21

..
Chicken becomes a national crisis?
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