May 3, 2004

Japanese Bird Flu-hit Poultry Farm Closes
 

A poultry farm operator at the center of a bird-flu scandal in Kyoto Prefecture has dismissed some 200 employees and closed its business operations, officials of the company said on Friday.

A bird-flu outbreak was discovered at its chicken farm in Tanba, Kyoto Prefecture, in February. Asada Nosan Co., based in Himeji, Hyogo Prefecture, has lost customers since then.

The firm tried to scale down its business for reconstruction by disposing of some 1.77 million chickens at the five farms it operates in Hyogo and Okayama prefectures.

However, due to the bad reputation it had obtained through the cover-up scandal, the company failed to recover egg-selling channels or find buyers for these farms.

As a result, Asada Nosan decided to dismiss all its employees, and have already informed banks it deals with of its closure.

The company and its president, Hideaki Asada, have been indicted for failing to report a possible bird-flu outbreak to local authorities, thereby violating the Domestic Animal Infectious Diseases Control Law.

Asada told reporters on Friday, "I am sorry to have caused an irremediable situation."