January 12, 2004

Korea Aid Package For Farmers Hit By Bird Flu

The South Korean government announced a 11.3 billion won (US$9.56 million) aid package to farmers bit by the spread of bird flu in the country.

The Ministry of Agriculture and Forestry will buy 6.5 million chickens and 400,000 ducks to stop falling poultry prices. These purchases will amount to 2.6 times more than initially planned.

The ministry, however, decided to cease buying ducks and chickens from farms affiliated with large-scale poultry processing firms that normally account for 70 percent of the government's purchases.

Instead, the ministry said it will only support small-scale poultry raisers for the time being, saying that is the best way to prevent a further drop in prices.

The average farm price of chicken meat hit 1,034 won per kilogram just three days before a bird flu outbreak was found at a poultry farm on Dec. 12. It then plummeted to 640 won per kilogram as of Dec. 30 and 611 won as of Jan. 9.