April 21, 2008

China to support poultry farmers as egg prices escalate

China listed steps to boost egg production and support poultry farmers affected by high feed costs and bird flu outbreaks.

Small farmers still account for much of China's poultry industry, amid a move towards industrial farms.

Observers said that feed costs and bird flu outbreaks pushed some of the poultry breeders out of their businesses.

China's government promised to pump agricultural subsidies to farmers in an effort to tame consumer inflation pushed by high food prices.

The government said Friday that it is preparing compulsory compensation to farmers whose flocks are culled due to bird flu.

Furthermore, the government would support reconstruction efforts in southern China, where unusually harsh winter storms killed over 67 million poultry, and encourage large-scale farming.

In the first quarter of 2008, egg prices were 16 percent higher while chicken prices surged by 17 percent on-year, the National Bureau of Statistics reported.