June 17, 2013

China grants US$48.54 million subsidy to the poultry industry

In order to boost its poultry sector in the wake of the H7N9 bird flu outbreak, the Chinese government has granted subsidies of RMB300 million (US$48.54 million), according to China's Ministry of Finance on Friday (Jun 7).

The subsidies will be used to help poultry breeders stay in business, ensure their productivity and stabilise market supplies of poultry products, according to the ministry.

The latest figures from the China Animal Agriculture Association indicate that the industry has recorded losses of more than RMB40 billion (US$6.5 billion) since the H7N9 influenza outbreak occurred in March.

To ease the burden that the outbreak has placed on poultry breeders, the central government has joined hands with local governments to offer help. In May, the central government allocated subsidies of RMB600 million (US$98 million) to major poultry processing companies and breeders nationwide to stabilise the industry.

In addition to the subsidies from the central government, 10 provinces, including Henan, Shandong and Guangdong, have issued policies to aid poultry breeders.

In order to prevent the spread of the H7N9 virus, the government had ordered the culling of poultry in some areas since March. It had also closed live poultry markets in order to reduce human contact with birds.