February 5, 2004

China Inner Mongolia Prairie Warns Bird Flu May Affect Operations

Inner Mongolia Prairie Xingfa Co. Thursday warned its business could be affected if the bird flu outbreak continues to spread.

The firm, which has interests in poultry, timber and agriculture, said it hasn't detected any bird flu in its poultry operations and has been putting in place strict preventative measures.

The impact the disease will have on its business this year is unclear, the company said in a statement, but warned investors of the risk.

Chicken products accounted for 63% of its sales in the first three quarters of last year, the company said.

Inner Mongolia Prairie Xingfa's statement comes after another poultry producer, Shanghai Dajiang (Group) Stock Co., issued a similar warning this week.

On Wednesday, China's state television confirmed an outbreak of bird flu in another southern province and announced two more suspected cases.

The government has already halted exports from bird flu-affected regions within the country and has slaughtered thousands of chickens.

So far, no human cases have been reported in China, where 12 of 31 regions are investigating outbreaks of avian influenza since the country's first case was confirmed Jan. 27. In Asia as a whole, at least 12 people have died from the disease.