Recently little is spoken about the bird flu. The reason is the cold weather. The last circle of this virus is Eastern Europe, where the temperature is extremely low right now. The weather is minus 30 degrees. The epidemiologists will have some break. Now we can calculate the economic consequences that have rose because of the fear of plague. The economy fights this plague on its own. Poultry breeding, as an economic field, started to develop in Armenia at the end of the 90s. Prior to this our market was full of poultry imported from the American continent (well-known Bush legs), Iranian and Turkish eggs. At the beginning of the 90s all the large economies of poultry breeding went bankrupt. The country’s communities were not able to provide the population with poultry products and suffice the egg demand. In 1998, when we knew that the energy crisis has overcome, new leading poultry breeding companies were established or re-established. Later these companies became so developed that they even started to export their products. According to official data poultry production increased by 41 times compared to 1999 and egg production – by 5 times. According to the same data about 80-85% of poultry products used in Armenia are provided by local poultry-breeding companies. Only 15-20% is provided by the country communities. 50% of eggs are also produced in factories. At the end of 2005 this rapidly developing sector had an immense crisis. That is not the bird flu but the public opinion that originated because of fear. Compared to 2000 the number of poultry increased four times in Armenia. Poultry consumption reduced by three times in December. Even the pre-Christmas shopping period didn’t change the situation. Both the producers and the store owners think that the situation is much worse in 2006. Neither the citizens nor restaurants bought bird meat within January. Villages and communities neighboring the Turkish border have killed their chickens in order to prevent the bird flu. At the end of December, country poultry is sold at unbelievably low price – 250-500 AMD. Sanitary doctors were forbidding the sale of poultry products brought from villages. In “Arzni” poultry factory, has drastically lowered the number of hens and chicks in the factory has drastically reduced. However unlike individual poultry producers the companies cannot kill the chick and freeze it in the refrigerator for a long time. The lowest condition is connected with egg consumption. Storing eggs is also a very difficult technical process. Last week the producers had to lower the egg price. The egg price in market has decreased by about 15%. The state has not showed any support action to poultry-breeding companies yet. The RA Minister of Agriculture has only denied the bird flu virus in Armenia once or twice. In Turkey the government agreed to reimburse the companies – $4 per hen and $10 per turkey. The owner of “Arzni” factory also asked his employees to kill their chicks in their communities and promised to give them same number of chicks after the plague is overcome.
The decrease of poultry is unfavorable for our country not only for the fact that certain companies will go bankrupt but hundreds of people may lose their jobs. This branch of economy is facing great difficulties. According to official data the number of poultry in Armenia is 2 million 300 thousand. Half of those belong to companies and half to private companies. In 1998 when there was a great slump in pork price, the pork industry became unprofitable for villagers. The state didn’t do anything about it. The result was that even after the villagers killed their pigs the price stayed the same and even rose. The Minister of Agriculture always says that there are no means to compensate the economies.