February 9, 2004

 

                       

Malaysian Poultry Industry In Trouble As Poultry Demand Drops

 

The Malaysian poultry industry could be in trouble as demand for chicken meat dropped drastically following the outbreak of bird flu in the region.

 

The up to 60% drop in business may force a number of chicken farmers to close shop, further decreasing supply.

 

The industry players and the authorities are now concerned over a looming shortage in supply of chicken when consumption returns to normalcy.

 

Veterinary Services Department director-general Datuk Dr Hawari Hussein said many farmers were adjusting their production following the low demand.

 

He said the farmers had moved to reduce the import of chicks to avoid huge losses in the event of an outbreak of the avian flu locally. 

 

He said the ban in chicken and poultry imports from a few countries affected by the flu, including the United States, would further restrict supply.

 

"The reduction in the import of chicks is caused by breeders fearing that there will be no market for them when the birds mature," he said, adding that the department would meet farmers' representatives today to urge them to maintain production levels.

 

Yesterday, Agriculture Minister Tan Sri Muhyiddin Yassin announced a ban effective immediately on all imports of poultry from the United States following an outbreak of bird flu on a farm in Delaware.

 

"If no initial action is taken, the effect could devastate the country's poultry industry," he told reporters after meeting the Langkawi Umno election machinery.

 

He said the presence of bird flu in the United States meant that the disease could spread even to unlikely regions or countries.

 

As such, he said, measures must be taken to contain the spread of the disease, including banning imports from infected countries.

 

Malaysia has already banned the import of live birds and poultry products from Thailand, China and eight other affected countries in Asia.

 

Federation of Livestock Farmers' Association of Malaysia broiler unit chairman Yap Kim Hwah said the demand had decreased by 300,000 chicken a day while hawkers had reported a 30% to 60% drop in business. Malaysia usually produces 1.3 million chicken daily.

 

He said chicken prices would continue to drop and remain low until the end of the month because of the low demand.

 

Selangor and KL Poultry Traders Association adviser Datuk Dr Lee Chong Meng said Malaysia imported about 200,000 "breeder" chicken from the United States annually for the production of broiler fowls.

 

"Parts of chicken that Americans rarely consume - like the wings, drumsticks and gizzards, due to their preference for breast meat - are also imported from the United States," he said.

 

Other frozen poultry products from the United States, he said, include frankfurters, nuggets, sausages and turkey.

 

On the ban, Dr Lee said Malaysia would have to look at other major exporters like Britain and Europe to make up for the drop in supply.