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Commentary: Chicken and other food export bans create a lose-lose scenario for everyone

By Myrtle G. Corbo 1 year ago

A domino phenomenon of foods nationalism could be a reduce-drop state of affairs for all people: It drives up food stuff costs, which include for these who previously battle to afford it.

Countries’ medium-term plan believability and business enterprise interactions are jeopardised as partners scramble to locate different substitutes on limited discover. Bans also have a tendency to enhance the incentive to smuggle items out for larger foreign rates.

But momentary meals export bans appear an quick way for international locations to soothe domestic issues and may perhaps persist so lengthy as people get worried about foods inflation.

What lies in keep for Singapore, observing as we import around 90 per cent of our foodstuff needs?

COULD Hen EXPORT BAN Drive Foods INFLATION IN SINGAPORE?

Malaysia’s export ban on chicken on your own is not likely to have a major influence on in general foodstuff inflation in Singapore. Though foods accounted for 21.1 for each cent of the Purchaser Price tag Index (CPI) basket, chilled poultry occupies only .3 per cent of the complete basket. 

Headline inflation rose 4.8 for every cent and food items inflation improved 3.1 for each cent 12 months-on-12 months (yoy) on ordinary in the first 4 months of 2022.

But the rate of chilled chicken will likely go up owing to the supply-demand imbalance. In accordance to the Singapore Meals Company (SFA), Malaysia accounts for 34 for every cent of Singapore’s chicken offer in 2021, and most of the chicken imported ended up slaughtered and chilled in Singapore. 

The export ban means foodstuffs like hen rice in our hawker centres are possible to see a spike in price ranges, as stalls are unlikely to attain offer from different resources so speedily. Poultry Merchants’ Association’s secretary Ma Chin Chew explained to CNA earlier: “For countries (like the US and Brazil), they are far too considerably. Even if importers make their bookings proper away, the chickens will only get there two months afterwards.”

Devoid of realizing how extended the export ban could past, potential buyers might not want to dedicate to substitute resources much too significantly ahead either. So, some stallholders mentioned they intend to near temporarily, specifically if they do not contemplate frozen rooster a viable option.

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