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Reail News monthly update: December 15, 2005

Many poultry companies are watching their chicken sales plummet as fears of bird flu spread.

Last month, bird flu seemed to dominate the news. But during the past couple of weeks, reports of the virus appear to have reduced, although that is unlikely to bring much consolation to many companies involved in the poultry sector. For them, the sustained negative publicity brought on by outbreaks of avian flu in countries including Indonesia, Romania and Kuwait has caused enough damage.

As RNME discovered this month from talking to companies involved in the sector, many firms have seen their poultry sales plummet, despite their products being sourced from countries that are free of bird flu.

But with the World Bank estimating that a year long flu pandemic could cost the global economy some US $800 billion, it is clear that governments need to take steps to prevent the virus’ spread — even if they do cause some degree of panic among less well informed consumers.

GCC governments appear to be taking the necessary precautions. Indeed, GCC ministers of health and agriculture recently agreed to draw up an emergency action plan to tackle bird flu. They also agreed to ban the import of fowl, poultry meat, hatching eggs and fodder from countries already infected by bird flu and countries suspected of being infected.

The headache for people involved in the sector is ensuring producers take action to reduce the potential spread of bird flu without also spreading irrational fears. Crucially, Jasem Mohammad Darwish, Secretary General of Municipalities, confirmed that chicken, poultry products and eggs in local markets are fine for consumption. This followed a recommendation by the National Food Safety Committee and the Veterinary Control Committee to re-assure the public that poultry products are safe.

It also appears that companies involved in the poultry sector are making a stand and trying to dispel some of the myths surrounding bird flu. It is a positive sign that the companies RNME spoke with are making plans to help educate the public that poultry and eggs sourced from countries free from the bird flu virus are safe to eat. If GCC governments also throw their weight behind schemes to help educate the public about the safety of poultry products, the industry might just cope.

Are you a retailer, producer or distributor involved in the poultry sector? What do you think of the reactions to bird flu from the government and the public? Do you think governments are doing enough to support poultry companies? E-mail me on: [email protected]

Roger Field, Editor.

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