January 26, 2004

Thai Chicken Exporters Hurt By Bird Flu Outbreak

Thai chicken exporter GFPT PCL said that the bird flu outbreak in the country would hurt its earnings around one to three months.

The outbreak has prompted many countries to suspend chicken products imported from Thailand.

Late last week, two of the country's biggest poultry markets - Japan and the European Union - imposed a ban on imports. China later said it had also banned Thai poultry products.

"The company forecasts that it will be affected (for) around one to three months, (depending) on the negotiations between the Thai government and importers," the company said.

GFPT's income from direct and indirect exports accounts for around 35% of total revenue, the company said.

However, analysts have said concerns over bird flu will also dent domestic demand and depress prices.

In 2002, GFPT posted revenue of 6.91 billion baht ($1=THB39.083) and a net profit of THB571 million. The company is expected to report 2003 earnings in mid-Feb.

The stock was at THB18.50 at the midday break Monday, having lost 23% since Thursday, when Japan said it decided to ban Thai chicken.

Thailand confirmed an additional human case of bird flu Monday, bringing to three the total number of people in the country infected with the virus, one of whom has died.