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Bird flu to cost more than NIS 100 million
Initial estimates: Government to compensate chicken farmers to the tune of NIS 20 million, exporters to lose tens of millions of shekels, local sales to decline
Tani Goldstein
The overall economic damage likely to result from the bird flu outbreak in Israel is expected to total more than NIS 100 million (about USD 22 million,) initial estimates show.
This sum includes tens of millions of shekels to be lost by farmers and the State as a result of the culling of chickens, additional tens of millions lost as a result of an expected decline in local sales, and huge sums to be lost by chicken exporters as a result of the European ban on importation of Israeli birds.
According to sources familiar with the industry, the average price of a culled chicken is about NIS 50. Overall, about 400,000 birds are expected to be culled, bringing the total loss to about NIS 20 million (roughly USD 4.5 million.)
The killing of chickens is also a pricey expenditure, with the costs of digging the giant pits used to bury the dead birds and the introduction of special measures to prevent poisons from seeping into the ground estimated at millions of shekels as well.
As to government compensation, the Agriculture Ministry has not yet estimated the costs, but farmers believe compensation will be in accordance with chicken market prices. Although the government is not obligated by law to offer compensation, the Agriculture Ministry said it will consider compensating the farmers nonetheless
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