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India sniffs a windfall
By Indrajit Basu

KOLKATA - While the spreading avian flu has hit poultry exports from China, Taiwan, Thailand and Indonesia particularly hard, India's poultry products, which turned uncompetitive a few years back, stand to gain from the misfortune of these countries.

In line with major importers such as South Korea and Japan, India has started closing its doors to poultry imports from infected regions, but the country's farmers believe that the scare has offered them a once-in-a-lifetime opportunity to break into the markets so recently dominated by Thailand, Indonesia, Taiwan, China, and even smaller countries such as Myanmar, Vietnam and Cambodia.

Industry sources say that with rising global poultry prices, as a result of dwindling poultry exports from the aggressive exporters in the Asian region, India is once again competitive. "The west Asian countries will be the biggest markets for India and the top items in demand will be hatching eggs, processed meat and day-old chicks," said an official from Ventakateshwara Hatcheries, one of India's largest organized poultry producers. "But we see Indian products increasingly becoming products of choice in Korea as well as neighboring countries like Nepal, Pakistan, Bangladesh and Burma [Myanmar]." Others are hoping that by mid-February, India will shift from virtually zero poultry exports to a modest global presence.

Although India's poultry exports have never been worth talking about, the country until a few years back did manage to export some produce, mainly to West Asian countries. But owing to the aggressive and competitive exports of other Asian countries, India lost even that market.

"Prices will reach at least $1,200 per ton, at which India is competitive. The domestic demand itself keeps companies busy. But if exports happen, they will reduce the glut within the country and improve prospects overall," industry sources said. Moreover, "India is still safe because it uses indigenous pure line birds for breeding," said Malati Puranik, who advises poultry companies on abattoirs and post-harvest management.

"But it is still too early to tell how far India will be able to meet international demand. There just isn't enough processing capacity available in India to create a substantial increase in exports," Puranik said. Indeed, with just three processing plants certified to export, the moot point is, to what extent is India's poultry industry ready to cash in?

"The problem is that most Indian companies are just not geared towards quality control, which is the first requirement of exports," said Vinay Adhye of Agribusiness Solutions, a consultancy company. "Except for the top three companies, no one is able to export at a moment's notice without adding to costs significantly. Therefore, the lack of agility could result in lost business."

Still, an official at Godrej Agrovet, the country's second largest poultry processor, said that India, as a standard operating practice, had put in place precautionary measures more than 15 days before the first bird flu deaths were reported overseas. "Consequently, there's little likelihood of bird flu being present in Indian poultry at all, which will put our products in good stead."

Meanwhile, India swung into action as reports said that the bird flu had reached Pakistan - sending ripples of fear all across the sub-continent. In a desperate measure, the government scrambled to slam the lid on the epidemic by barring all processing plants from imports and outsourced birds and products. Even commercial birds within the country, reared for the market, have been given Z-grade security, meaning complete isolation. The country's health ministry said that poultry farms on the India-Pakistan border had been closed to ensure that the disease did not spill over.

Until now, there have been no reported cases of bird flu in the country, but India has instructed the Indian Veterinary Research Institute and all regional laboratories to test samples of products from all organized poultry farms and send the morbid material to the high security Animal Disease Lab for confirmation that they are disease free.

All Indian states, too, have been sent guidelines for prevention and, in the event of an outbreak, for immediate action. The guidelines include an immediate halt to the entry of new birds in the flock from outside sources and strict regulations on the entry of personnel, material, visitors and vehicles to an area affected by the disease.

The guidelines mandate that culled birds and droppings should be buried deep or incinerated within the affected area. No exchange of any material and personnel between different farms in the affected area should be carried out. All farms should adopt a vigilance system for early detection and follow-up action.

The government is also setting up an expert committee of officials from the Department of Health and the Institute of Communicable Diseases. It will take preventive measures and ensure surveillance. The committee will keep a watch on domesticated fowl to detect if there is a sudden increase in the number of deaths.

Meanwhile, the first casualty of the flu fear is the country's famous "chicken tandoori kebabs" - marinated chicken meat grilled in a special clay oven called a tandoor. "Tandoori, tangri and tikka kebabs have to take a back seat, although chicken curry - which is cooked by boiling and frying the meat - is safe," said health experts as hotels and restaurants across the country started reporting dwindling sales of this delicacy. Top hotels in the country also complained of negative impacts as most top hotels and good restaurants serve imported chicken.

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Jan 29, 2004



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(Jan 28, '04)

Bird flu fear grips Thailand, shakes government
(Jan 27, '04)

 

     
         
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