Control of food prices - Feedback from Malaysian Stakeholders /Consumers

 

28 February 2023

The Current Situation

We have depended too much on the middlemen in the food chain. This is why raw ingredients have caused food prices to be raised.

At the moment, Menu Rahmah may have taken off in the Klang Valley, but it has not reached other places. Feedback from Ipoh, and two East Malaysian states suggest that they too are keen to have the budget meals but such idea has not taken off yet in their towns.  

 

What can the government do to help?

 

1.   Talking about prices of food such as meat and veggies, YB Michelle Ng reported that resident associations in USJ 3/4 in Subang Jaya have already started buying their groceries directly from the farmers. This is to cut off the middlemen. The Domestic Ministry, for example, can use this model and help publicise their model for others to follow or connect the farmers with the resident associations of housing estates/condo/apartments.

If farmers are short of workers, they have to start to innovate and automate their farming activities. For example, they should start thinking about an automatic irrigation system where the fertilisers are also added to the water.

 

2.   Ikan n Fish and Direct Sourcing is a good example of how fish breeders have circumvented the middlemen.  https://www.minimeinsights.com/2014/03/25/ikan-n-fish-and-direct-sourcing/

 

3.   The Ministry through one of its agencies handling Pasar Tani can organise grocery markets in a more organised and widespread manner. Prices must be lucrative enough for people to support this initiative.

 

4.   The government through their district offices can set ceiling prices for food and drinks such as teh tarik, water and noodles at hawker centres, mixed rice, etc. Drinks are the biggest profit earners for restaurants and kopitiam. Per unit product contribution can be 200-300% or more gross margins.

Mixed rice should not be priced at RM12 a plate, especially if the vegetables only increased by 10%, or a plate of rice with chicken chop from RM12 to RM14 (17% increase) when raw ingredients increase by less than that. Consumers should also be given the access to complain higher prices using mobile app to report prices and sharing information.

 

5.   Enforcement should be carried out. It is important. In countries like Singapore, the authorities monitor the food prices so that food prices are not too high, or fixed at the whim and fancy of hawkers and restaurant operators as well as the wholesalers/retailers. For example, one restaurant operator complains that okra (or bendi) has gone up from RM5per/kg, now RM12-15/kg wholesale price. She is asking that vegetables and meat prices (which have gone up by 200%) be controlled so that it is easier for restaurant operators to work out their costing and charge the customers accordingly.

 

Even Pasar Borong Selayang is selling

1) bendi

RM10-15 per kg

2) long bean

RM8-10 per kg

3) brinjals

RM10-15 per kg

4) bitter gourd

RM8-10 per kg

For those who have menu in their restaurants, they will face a big challenge by the prices increasing non-stop compared to the kopitiam or those restaurants which do not have menu stating their prices.

Our government should set the ceiling prices that are more reasonable for the benefit of those who are operating the F&B business as well as their consumers.

6. Not every restaurant may be able to offer Menu Rahmah, especially the upper class restaurants. For them, the Menu Rahmah would be a loss making business. While this gentleman agreed that cheaper food would attract more customers, if they are willing to participate, but he thinks that not many are willing to participate. However, he said that if customers refuse to patronise highly-priced restaurants, then these restaurants would take note.

 

7.On Menu Rahmah, it's all about building a trend. Penangites, for example, are proud of their food. Any hawker food that is expensive and not good will not survive in Penang. This gentleman was told when he visited Penang last year, any food stalls that survive means they have to be of a certain standard, and their prices are cheap and food is good.

 

8.The ministry can also encourage restaurant operators to be more innovating to produce nutritious food or drinks out of things that are usually considered ‘food wastes.’ For example, pineapple peels and the core are rich in certain nutrients. This can be boiled and turned into nutritious drinks. In his own home, he uses the same water in the steamer.  

9. Consumers have to know where the food is reasonably priced. When you can get half a drumstick, four pieces of pork skin, long beans, cockles and taupok for only RM7 in Ampang, it is value for money. Reasonably priced in spite of rising prices of raw ingredients. It boils down to customers’ choice and food hawkers looking for the quick dollar.

 

Pork belly at NSK Oriental Goods, for example, are priced at RM47/- per kg. The lady said she would choose a cheaper cut or buy less if she cannot afford to boycott.

 

10. Restaurant operators can learn to be more creative to produce food or drinks out of things that are usually considered ‘food wastes.’

    Pineapple peels and the core, for example, are rich in some very nutrients and vitamins, but most people just throw them away.

    Instead of using tap water for the steamer at home, the gentleman boiled the pineapple peel and the core in filtered water which was used to steam the fish. After it was done, he had the steamed fish for dinner as well as the 'pineapple' drink. It may taste diluted but just throw in a couple of lemon slices, and it takes good. https://www.youtube.com/watch?v=6aM19tDDLxU

Such nutritious drinks can be sold cheap in restaurants. If restaurant operators can be more innovative, they can come out with some good stuff.

 

 11. Answers provided by ChatGPT:

Q: Currently, veggies and meat are sold via middlemen. How do you think we can avoid using the middlemen? What is the best way for the farmers' products to reach consumers directly?

 

A: Eliminating middlemen in the process of selling vegetables and meat can be beneficial for both farmers and consumers. Here are some potential ways to achieve this:

Farmer's Markets: One of the most popular ways for farmers to sell their products directly to consumers is through farmer's markets. Farmer's markets are typically held in public places such as parks, community centers, or parking lots, where farmers can set up stalls and sell their produce directly to customers. This provides consumers with fresh, locally grown produce and allows farmers to earn more money by selling directly to consumers without having to pay middlemen.

Community Supported Agriculture (CSA): CSA is a system that allows consumers to buy shares of a farm's harvest in advance, which provides the farmers with financial support to grow crops. The customers receive a regular supply of fresh produce throughout the growing season, eliminating the need for middlemen.

Online Marketplaces: With the rise of e-commerce, farmers can also sell their products online through dedicated online marketplaces that connect farmers with consumers. These online marketplaces can help farmers reach a wider audience, sell their products more efficiently, and eliminate the need for middlemen.

Direct Sales: Farmers can also sell their products directly to consumers by setting up a roadside stand or selling from their farm. This method eliminates the need for transportation and storage costs, which can often be the largest expense for farmers.

    In conclusion, there are various ways for farmers to sell their products directly to consumers without the need for middlemen. Farmer's markets, CSA, online marketplaces, and direct sales are just a few examples of the many options available. By eliminating middlemen, farmers can earn a higher income, and consumers can enjoy fresh, locally grown produce at a lower cost.

The above effort by the people is appreciated by:

Please join the chat group to discuss other issues related to domestic trade which affect majority of us consumers. Do not just complain (we all know the problems), but offer possible solutions that can be used to solve the problems. 

 https://chat.whatsapp.com/Eccjvh7iRj13sJ6k5djh91