December 7, 2005

 

Vietnam's poultry farmers could face bankruptcy after bird flu

 

 

Bird flu may force many poultry farmers in Vietnam into bankruptcy, as more consumers shy away from their products, an official said Tuesday.

 

The virus is causing some US$44 million in losses each month to the poultry industry because products cannot be marketed, said Tran Cong Xuan, president of the Vietnam Poultry Farmers Association.

 

"Never before has the poultry industry been in such a difficult situation," he said. "Many poultry farmers are on brink of bankruptcy because customers are turning their back to poultry and poultry products."

 

Many farmers with flocks larger than 100 have released their birds into the rice fields because they can no longer afford to feed them, actions which increase the risk of the H5N1 bird flu virus spreading further, he said.

 

Xuan blamed the situation on excessive misinformation in state-controlled media, which inaccurately advised people not to consume poultry and poultry products.

 

"That's not in accordance with the government's resolution, which allows poultry that goes through quarantine inspection to be sold and consumed," he said.

 

Outbreaks have re-emerged in Vietnam since October, killing or forcing the slaughter of more than 2 million birds.

 

The government currently offers US$1 for each bird culled in areas infected with bird flu and 63 cents a piece for farmers who raise more than 500 birds in areas where no outbreaks were reported.

 

Banks will also allow poultry farmers to postpone paying their debts for one year.

 

"Once the public understands correctly the situation and return to buy poultry products, then we can hope to revive the poultry industry," Xuan said.