May 23, 2022 09:53

Pork prices keep rising, and operators can’t bear it. Klang Bak Kut Teh is planning to raise prices next month

(Klang, 23rd) Due to the shortage of feed and the outbreak of African swine fever, pork prices have risen 6 times since the beginning of the year. Operators can no longer support the strategy of small profits and quick turnover. Klang Bak Kut Teh may raise prices next month!

The global wheat shortage and price increase have set off a chain reaction, which has also impacted domestic feed prices, causing the operating costs of the breeding industry to rise sharply. Pork prices also began to rise in January this year, but most Bak Kut Teh operators did not dare to raise prices rashly at that time.

After entering March and April, not only was there a shortage of feed, but African swine fever was also reported in several pig farms. So far, the price of pork has increased for the sixth time in less than half a year. Due to the large increase in pork prices, Klang Bak Kut Teh operators had no choice but to raise prices by 50 cents to RM1.

Bak Kut Teh is a local delicacy in Klang. Since the continuous increase in pork prices, the current average price of Bak Kut Teh in Klang is RM12 per person, and the price of clay pot is RM14 per unit.

However, given that the price of live pigs has increased by RM50 per 100 kg, operators can no longer rely on small profits and quick turnover to support themselves. In addition, the price of pork may continue to rise, so Klang Bak Kut Teh is expected to increase slightly next month.

Li Jinde, the owner of "Mao Shan Gao Bak Kut Teh", one of the famous brands in Bandar Malan New Village, said in an interview that although the price of pork has been rising, the operators are also worried that the price adjustment will scare away customers.

He revealed that the store's Bak Kut Teh was originally RM11 per bowl, and then increased by RM1. Even though the price of pork has increased several times, they still maintain RM12 and have been relying on the method of small profits and quick turnover to support it.

“We have been informed that the price of pork will increase next month. Since the price of pork is too high and cannot absorb the cost by itself, I believe that most operators will slightly increase the price again next month. ”

He said that the price of pork has been rising since a month ago, and the operators have already felt the pressure of cost increase. Although pork is still available on the market, the quantity is getting smaller and smaller and the outlook is worrying.

He gave an example, in the past, customers may have asked for 10 bowls of small bones, but now they can only barely provide 6 or 7 bowls. It is obvious that there is a serious shortage of pork parts, and it is not like before that the needs of diners can be met at will.
 

Will observe first before deciding whether to increase the price

On the other hand, when asked, Ms. Huang, a Klang Sam Mei Bak Kut Teh operator, pointed out that the pork supplier has notified that the price will be adjusted today (Monday), and it is expected that one kilogram of pork will increase by RM1.

“Pork prices have been rising since the beginning of the year. Our store used to sell a bowl at RM11. It was not until the fifth round of pork price increase that we could not afford it and raised the price to RM12 per bowl. ”

She pointed out that the price of pork has increased and the price of Bak Kut Teh has increased helplessly. However, Bak Kut Teh has always been a common food. A bowl of bone soup can make you feel full, so customers can understand and do not care about this situation.

“After the epidemic situation improved, almost every Bak Kut Teh store in Klang was full of customers. Many regular customers, including foreign tourists, have resumed dining in and drinking tea while dining in the store. ”
 

She said that the pork in the store comes from a pig farm in Selangor, so it is not affected by the African swine fever. However, the continuous surge in prices is actually related to the shortage of feed, and no one can predict when the price will stop rising.

She added that it has not yet been decided whether Bak Kut Teh will increase its price. After all, it has supported 5 rounds before deciding to increase the price. Now it is necessary to observe first before deciding whether to increase the price.

In addition, when asked, Zhang Zhenyi, the owner of "Ah Yi Bak Kut Teh" in Klang, pointed out that although the price of pork has increased, the supply chain was not affected until the outbreak of African swine fever, and even if he paid a high price, he could not get more pork.

He revealed that his Bak Kut Teh is sold in two ways, priced at RM12 per bowl and RM14 per clay pot. He did not dare to raise the price randomly and has been comparing the prices of his peers.

"As early as the New Year, some peers raised the price, selling a bowl of Bak Kut Teh for RM12. However, our store was struggling to support it until a month ago when pork was too expensive and the price of a bowl was increased by RM1.

He said that since the rent of shops in Klang is still acceptable, most operators can still afford to absorb the cost price, but he has received a notice that the price of pork will increase again next week.

He added that he is still waiting and watching, and he dare not raise the price rashly. He will refer to the price increase of his peers in advance, and then decide how much to increase next month based on market trends.

News from: https://www.orientaldaily.com.my/news/nation/2022/05/23/488105