January 29, 2004

Indian Producers Set To Gain From Bird Flu Crisis

India is looking to capitalize on the current bird flu crises spreading across the region. Local producers expect exports to rise in the coming months with many countries cancelling imports from bird flu hit countries.

Chicken exports from Thailand, Hong Kong and China cumulatively are around $2 billion per annum. With the flu outbreak, exports from these countries have stopped and the poultry industry has taken a beating with lakhs of birds being culled. This has opened a new gateway to Indian poultries, industry sources said.

"Exports are going to increase in the coming months. We are in consultation with several importers in Saudi Arabia. West Asian countries and the European Union are the main focus areas. The exports are likely to remain at the higher levels since it would take more than a couple of years for suppliers in countries like Thailand to recover from the flu impact," Gold Chick Hatcheries and Foods Ltd managing director D B Prasada Rao said.

More than revenue from exports, the crisis would help stabilise the prices domestically with surplus stock being diverted to other countries, industry sources said. The poultry industry is facing a crisis because of overproduction.

However, Indian export efforts will be challenged by the US, Mexico and Brazil who quote competitive prices because of the subsidies given to the poultries there, Prasada Rao said. These subsidies are in the range of $650-$850 per tonne of chicken costing $1,200, he said.