China bird flu fears hit poultry prices, meat producer shares
BEIJING: Chinese chicken prices sank to their lowest level in more than a decade yesterday as fears grow about the spread of bird flu, hurting meat producers’ share prices and deepening concerns about demand in the world’s second-largest poultry consumer.
The sharp drop came as the government reported as many as 79 people died from H7N9 avian flu in January, far surpassing fatalities in recent years and taking the total this winter to 100.
The larger-than- expected number alarmed the market, sending prices in the main producing regions to their lowest since 2005, according to Shanghaibased consultants JC Intelligence Co (JCI) which assesses prices.
“Now it’s relatively serious. The impact was underestimated,” said Alice Xuan, JCI analyst.
“Lots of places have closed down live poultry markets. That has quite a big impact.”
The spread of the deadly virus comes as neighbouring South Korea and Japan also battle major outbreaks among their poultry flocks.
Live poultry markets are the main sales channel for China’s lo- cal chicken breed, which accounted for about a third of the poultry meat supply last year, according to estimates from the United States agriculture department.
Over the past three months, many provinces have closed live poultry markets in an effort to prevent the spread of infection, hitting sales of birds, said Xuan.
The impact on local birds has dragged down the prices of white feather chickens, bred from imported stock and used by fast-food chains, that account for more than half the country’s chicken supply.
The average price of live chickens in major producing areas such as Shandong, Henan, Hebei, Gansu, Anhui, and the northeast region fell to 5.28 yuan (US$ 0.7690) per kilogram this week, down from more than 7 yuan per kg in December. — Reuters