Malaysia bird’s nest producers risk losing $15 million due to avian virus

PETALING JAYA - Malaysian producers of bird’s nest fear that they will miss the golden opportunity to export about RM50 million (S$15.2 million) worth of the delicacy to China in time for Chinese New Year after the Newcastle disease virus was detected in Malaysia.

It is a contagious viral avian disease that affects domestic and wild birds.

The announcement on the outbreak is causing a headache to Malaysian companies as they are in the midst of preparing their bird’s nest exports in time for festivities on Jan 29, 2025.

The Veterinary Services Department (DVS) announced the temporary suspension of bird’s nest product exports, including raw-cleaned and raw-uncleaned edible bird’s nest, to China starting on Dec 25 due to a Newcastle disease outbreak in Malaysia, as reported by the World Organisation for Animal Health.

Stakeholders said the temporary halt of exports have made 15 tonnes of bird’s nest products worth RM50 million from Malaysia unsellable.

Datuk Chua Huai Gen, president of the Malaysia Swiftlet Nest Industry and Exporters Association, said Chinese New Year falls on Jan 29 and it is during this period when bird’s nest exporters are preparing to ship their products to China.

There are currently 58 companies authorised to export bird’s nest to China, he added.

“It is estimated that 10 to 15 tonnes of bird’s nest, valued at RM50 million, will not be airlifted to China,” said Mr Chua, who added that the Chinese New Year period would be the most profitable time for Malaysian bird’s nest exporters.

Mr Chua said according to the updated list released by Chinese authorities on Dec 20, a total ban has been imposed on the import of animals and their products from countries with prevalent animal diseases.

This is despite the DVS reporting that cases of Newcastle disease have only appeared in Perak, Sabah, Negri Sembilan, Selangor and Melaka.

Stakeholders are now closely monitoring the latest information regarding the ban by the Chinese authorities.

“Since this is the peak period for exporting bird’s nest to China, those shipped between Dec 20 and Dec 23 are still awaiting customs clearance in China,” said Mr Chua.

“The sudden announcement has caught us off guard, impacting our operations.”

Mr Chua added that the Newcastle disease primarily affects poultry.

However, as swallows are birds, their exports have been temporarily halted pending further quarantine measures from the DVS before China agrees to resume imports, he said.

Mr Allen Tan, the president of the Federation of Malaysia Bird’s Nest Merchants’ Association, said the temporary ban has caused confusion and concern among industry members.

He said that as swallows are categorised as birds, DVS needs to differentiate swallows from other types of poultry.

Furthermore, DVS should provide samples to ensure there is no risk of transmission, he added.

“Newcastle disease is not like severe acute respiratory syndrome. It has been endemic for years and doesn’t affect bird’s nest,” said Mr Tan.

“Although chickens and swallows are both avian, the department tests every batch of bird’s nest to ensure safety is maintained.”

Currently, swiftlet houses must be registered with the DVS, and bird’s nest processing must undergo heat treatment. Each batch of bird’s nest can also be traced.

Mr Tan said Malaysian authorities regularly inspect swiftlet houses.

The processing technology uses a straightforward heat treatment where exposure to temperatures above 70 deg C for more than 3.6 seconds effectively eliminates risks.

With Chinese New Year approaching, any delay in shipment will undoubtedly affect operations, said Mr Tan.

He added that DVS informed the members that it will continue to closely monitor the situation and manage communication to avoid unnecessary panic.

“Traceability methods are in place, and the processing period has been shortened,” Mr Tan said, adding that it is a temporary situation and bird’s nest farmers should not overreact.

“We are working closely with the DVS and relevant authorities to expedite the resolution of this matter. Our priority is to maintain trust with our international partners and ensure minimal disruption to the supply chain.”

Currently, Malaysia is one of four countries permitted to export bird’s nest to China. The others are Indonesia, Thailand and Vietnam.

China is the largest consumer of bird’s nest in the world, accounting for over 96 per cent of global consumption.

According to the Chinese Bird’s Nest Traceability Management Service Platform, the import volume of Malaysian edible bird’s nest into China was 155.5 tonnes in 2023, making up 27.9 per cent of the country’s total imports of edible bird’s nest, marking nine consecutive years of growth.

As of the third quarter of this year, Malaysia has exported a total of 102 tonnes of bird’s nest to China. THE STAR/ASIA NEWS NETWORK

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