February 3, 2004

 

 

China's Multi Million-Dollar Poultry Industry Threatened By Bird Flu

 

China's multi million-dollar poultry industry is being threatened by the current bird flu outbreak. In addition, major businesses such as catering are affected too.

 

The secretary-general of the China Poultry Association, Chen Guang, said his industry was worth hundreds of millions of US dollars in exports each year.

 

"It is the branch of animal husbandry that earns the most foreign exchange from exports, but now it cannot export. Farmers are in a panic. It is impossible to calculate the losses to the industry," he said.

 

The authorities have stopped the export of poultry from Hubei, Hunan, Shanghai, Anhui, Guangxi and Guangdong. Hong Kong, the mainland's largest market, has also banned chicken imports from across the border. Mainland chicken exports were valued at US$360 million in 2002, according to the Ministry of Commerce.

 

Some provinces are acting on their own to halt shipments. But questions have been raised about the efficiency of piecemeal reaction to the outbreak.

 

"The provinces recognise this is a crisis and the costs of making a mistake are too high. So you take care of your own interests," said David Zweig, a professor of political science at the Hong Kong University of Science and Technology.

 

Analysts say the sharp drop in demand could cut the mainland's poultry stocks by 10 per cent over the next three months to 7.9 billion birds.

 

One industry hit is soybeans, an important food for fowl.

 

"We spoke to one breeder in Shandong who can't ship anywhere in China," said Philip Laney, country director of the American Soybean Association. China is the largest consumer of soybeans in the world, importing 11 million tonnes worth US$2.5 billion.

 

Mr Laney said the outbreak was going to affect the entire industry.

 

Losses are likely to be felt by many in agriculture, the meat processing industry and restaurants.

 

Jin Haijie, a purchasing manager in the Guangdong Taste restaurant in Beijing, typifies the problems faced: "It is not as easy as it used to be to buy poultry products in the market".

 

Farmers who lose poultry to mass culls may have their level of compensation decided by local agricultural bureaus.

 

Premier Wen Jiabao has said farmers should be dealt with fairly.

 

There were no new official cases on the mainland by yesterday, but Gansu ordered the slaughter of 20,000 birds as a precaution. In Hunan, 17 farmers were put in quarantine after outbreaks.