June 13, 2005

China offers higher compensation to poultry farmers
 

The Chinese government has increased its compensation package to poultry farmers in its effort to reduce bird flu risk in Hong Kong.

In March 2005, the government proposed a buy-out offer to the poultry industry to half the maximum number of domestic-bred chickens, from 3.7 million to 1.8 million.

The original buy-out plan requires workers to attend retraining courses before receiving the grants. Total compensation amount is about HK$342 million (US$44 million), 30 percent more than the previous offer. Poultry transporters without any monthly tenancies who surrender their licenses will separately receive HK$14 million (US$1.8 million).

The cap on the amount compensated will also increase from HK$3 million (US$0.4 million) to HK$4 million (US$0.5 million) for each farmer after considering their capital investment on bio-security facilities, according to the government.

However, industry feedback reports that the compensation is inadequate because some farmers have spent HK$20 million (US$2.6 million) on improving bio-security facilities.

The cap on wholesaler compensation will be increased from HK$1.18 million (US$0.15 million) to HK$1.66 million (US$0.2 million), with calculations based on stall size.

Transporters who surrender monthly tenancies of parking spaces will receive HK$50 thousand (US$6,400) per vehicle and retrenched workers from the voluntary surrender schemes will receive a one-off grant of HK$18 000 (US$2,300).