Groceries to cost more as global tensions bite
Rising fuel, fertiliser and feed prices threaten Malaysia’s food affordability
SHAH ALAM – Malaysians may soon find their grocery baskets lighter as the West Asia conflict begins to squeeze the nation’s poultry, vegetables and essential food supplies, with experts warning that availability no longer guarantees affordability.
Rising energy and shipping costs are already pressuring domestic food production, affecting even locally grown vegetables and staple protein sources.
Agricultural economist Professor Datuk Dr Mad Nasir Shamsudin said geopolitical tensions typically push up oil prices first, which then drive higher costs for transportation, fertiliser and overall agricultural production.
“Energy remains a fundamental input in modern agriculture, influencing everything from machinery and irrigation to food processing and logistics.
“As costs rise across the supply chain, this will eventually lead to higher food prices, including both locally produced and imported items,” he said.
Nasir noted that Malaysia’s poultry industry, which supplies the bulk of the country’s chicken consumption, depends heavily on imported feed such as grain corn and soybean meal. Rising global prices for these inputs would significantly increase production costs, even if supply remains stable.
“This means that even if chicken and eggs remain available in markets, prices could rise sharply, making affordability a major concern for lower-income households,” he added.
He stressed that the situation highlights a widening gap between food availability and affordability, particularly for vulnerable groups.
Cameron Highlands Vegetable Growers Association deputy president Lau Weng Soow said short-cycle vegetables such as choy sum, lettuce and spinach are especially sensitive to fertiliser shortages and price spikes.
He added that fruit vegetables, including tomatoes, chillies and cucumbers, could also see reduced yields and quality due to lower fertiliser usage.
Lau said disruptions to shipping routes are likely to push up the cost of key imported inputs — including animal feed, wheat and certain edible oils — creating a broader cost-push effect on food prices.
“Any delay or increase in freight costs will directly raise livestock production costs, affecting prices of chicken and eggs, while tighter wheat supply will push up flour-based products,” he said.
He added that fertiliser supply disruptions would have the quickest impact on leafy greens due to their short growth cycles, forcing farmers to either cut usage or reduce planting areas.
Lau said farmers are already facing difficult decisions, including delaying planting, reducing inputs or shifting to lower-cost crops to manage rising expenses.
“Lower input usage will result in reduced yields and inconsistent quality, while rising costs without matching price increases will squeeze farmers’ margins,” he said.
He warned that such adjustments could lead to unstable supply and increased price volatility in the coming weeks.
Higher production costs are expected to ripple through grocery prices, with analysts warning that consumers may soon face higher prices for vegetables, poultry, eggs and other essential items if current conditions persist.
Lau added that while there is no immediate food shortage, the upstream production system is already under strain and requires early intervention to prevent further disruption.
“If not addressed promptly, price increases and supply instability may become more evident in the coming weeks to months,” he said.
Malaysia remains dependent on imported feed, wheat and certain edible oils, while fertiliser costs are closely tied to global energy prices — leaving food affordability vulnerable even when supplies remain physically available.
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