As outbreaks of avian flu decimate poultry demand in Asia and cause losses for the sector, China will encourage consolidation in the industry to reduce recurrences and the spread of the disease. According to China’s Ministry of Health small farms and live poultry markets across the country are fostering the outbreak and spread of the H7N9 strain of bird flu which has cost the Chinese poultry sector US$3.3 billion in losses as consumers stop buying poultry. The government’s reaction of industry consolidation is very much like the course taken after the contamination scandals in the country’s infant formula industry. Other Asian countries are reacting as well. Hong Kong has banned live chicken imports for 21 days and has culled 20,000 birds after a sample from mainland imports tested positive for H7N9. Vietnam has had two deaths from the H5N1 strain of avian flu and has intensified measures to prevent all strains of bird flu, and South Korea has seen a 70% drop in poultry demand since an outbreak of H5N8 last month and has culled 3.2 million chickens and ducks.
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