May 15, 2013

China Development Bank (CDB) has given emergency loans worth RMB116 million (US$18.7 million) to aid poultry firms which have been impacted by the H7N9 virus.

The loans, designated to be used by the companies to handle the new strain of bird flu, were granted to two poultry firms owned by Beijing Huadu Group Co., a leading chicken supplier, CDB said.

The move followed a Monday (May 13) government announcement stating that RMB600 million (US$98 million) in subsidies will be issued in order to support poultry processing companies.

The loans are the first to be granted to Beijing-based poultry breeders since the outbreak of H7N9 in late March.

Figures from the China Animal Agriculture Association indicate that the influenza has caused losses of more than RMB40 billion (US$6.5 billion) for the poultry industry.

The government has ordered the culling of poultry and closure of live poultry markets in some cities, reducing demand all the way down the industry chain.