Voluntary Report - public distribution

**Date:** 3/16/2005

**GAIN Report Number:** LA5001

LA5001

**Laos**

**Poultry and Products**

**Avian Influenza**

**2005**

**Approved by:**

![](media/image1.wmf)Russ Nicely, Acting Agricultural Counselor

U.S. Embassy, Bangkok

**Prepared by:**

Russ Nicely, Acting Agricultural Counselor

**Report Highlights:**

Laos suffered from an outbreak of HPAI (H5N1) Avian Influenza in 2004
that impacted most heavily upon their small commercial broiler industry.
The Lao poultry industry is dominated by traditional, smallholder
production scattered throughout the country. So far this year there have
been no further reports of AI. This report is based upon information
obtained from the Ministry of Agriculture and Forestry, Lao PDR, and
from the Food and Agricultural Organization of the United Nations.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[LA\]

Outbreak and Response

The first confirmed report of a HPAI (H5N1) Avian Influenza outbreak
among domestic poultry flocks in Laos occurred 14 January 2004. Reports
of further outbreaks continued until 4 March 2004. No other outbreaks
have been reported as of the date of this report, even though the
surrounding countries of Thailand, Vietnam, and Cambodia all have had
subsequent confirmed outbreaks. No human infections have been reported
in Laos.

After the confirmation of a HPAI outbreak in Laos, the Lao Ministry of
Agriculture and Forestry (MAF), Department of Livestock and Fisheries
(DLF), National Animal Health Center requested immediate assistance from
the Food and Agricultural Organization (FAO) of the United Nations. FAO
agreed to provide assistance, both as part of an emergency regional
response program and in country specific activities. The DLF also took
action and instituted a "stamping out" culling program for all birds
within 3 kilometers of identified outbreak sites. FAO assisted Laos in
establishing an Emergency Disease Task Force to coordinate efforts,
rehabilitate animal laboratory facilities in Vientiane for confirmatory
testing, and in organizing training for Lao officials in surveillance,
culling, and disposal/disinfection techniques. The Lao Department of
Planning of MAF indicated in a national workshop that compensation plans
had been drawn up, but many details remained to be worked out, including
whether or not farmers would be directly compensated. At the time of
this report it was not clear if the plan had a funding source.

A total of 45 outbreaks were confirmed, with 42 of these occurring on
commercial enterprises (broiler and layer farms), 38 of these in
Vientiane, the capitol and primary city of Laos. Another five outbreaks
were found in Savannakhet Province (on one layer farm and in smallholder
flocks) and another two in Champasak Province (on layer farms).
Smallholders who found AI in their flocks were located nearby commercial
operations suffering the disease.

The initial assessment of losses due to HPAI identified 50,670 dead
birds. The Lao government's stamping out efforts culled another 100,250
birds on 39 commercial operations in the Vientiane area and 3 others in
Champasak and Savannakhet provinces. Economic impacts were most severely
felt by the commercial broiler operations and some quail farms, mostly
due to market inactivity after the initial culling efforts. Restocking
efforts varied, with commercial farms taking between two to eight months
to fully restock, after receiving some assistance from the Lao
government and FAO. It was reported that some farms in Champasak
province were restocked with chicks from Thailand, in spite of the ban
on imports. Some producers switched completely away from poultry into
fish farming, cattle, and hog production.

An Active Surveillance Survey, funded by France, was conducted from May
to November 2004, to identify the spread of the disease within Laos.
Villages in each of the eighteen provinces were examined, including
selected "at risk" districts where outbreaks were known to have
occurred. Testing indicated no further infections of HPAI, but high
levels of antibodies to Newcastle disease and Bronchitis were found.
Foul Cholera is another disease routinely occurring among the Lao
poultry flocks during the cold season (December to February). Poultry
populations among the examined villages experienced no massive die-offs,
other than in the outbreak locations.

Other efforts to combat the spread of the disease include a national
workshop on post AI rehabilitation plans held in September, 2004, a
public awareness campaign utilizing print media and radio which started
in December, 2004, and will run until May, 2005, and a closing of the
Lao-Thai border to poultry imports from Thailand.

Poultry Industry in Laos

The poultry industry in Laos is predominantly one of smallholders,
raising free-range, local chicken breeds nearby their dwellings for meat
and eggs, mostly consumed by the household or sold locally for income.
Laos is a country of small villages, with only a few major cities. An
average village has around 350 chickens, ducks, turkeys and quail being
raised in small flocks interspersed among village homes by about 78
families, with women primarily responsible for the flocks. Ducks,
turkey, and quail are also raised, with negligible amounts of geese
found scattered around the country. The few commercial operations (less
than 100 total, with 89 of these located near Vientiane) in the country
supply nearby metropolitan areas. It is estimated that less than 25
percent of all poultry production is produced on the commercial farms.
Production is oriented to domestic consumption. Local breeds account for
87 percent of total poultry production, with ducks next at 9 percent,
followed by commercial breeds of layers and broilers at 2 percent each.
There are some smaller commercial operations (defined as 100 birds or
more, up to a maximum of 10,000 birds) of broilers or layers, mostly
clustered in the Vientiane city area. Savannakhet and Champasak are the
other two major production areas. Total poultry population is estimated
at about 14 million birds (2001), heavily concentrated in Vientiane
Province (3.2 million), Savannakhet Province (2.9 million), and
Champasak Province (1.4 million). Biosecurity and technology utilization
are minimal, with little available veterinary care from either private
or government sources.

Impact on Poultry Trade

The stamping out efforts fell most heavily on the commercial broiler
operations, especially in Vientiane, leading to a drop in available
supplies of broilers in January, 2004, and after, but local market
prices remained unaffected as smallholder production was able to supply
demand. The majority of layer operations appeared to remain profitable
through the year. Many poultry smallholders immediately switched their
purchases of new stock to ducks. Normally, for every duckling purchased,
three to four chicks are bought. After the AI outbreak, this ratio
reversed direction, with about two ducklings being sold for every chick
sold. The prices for day-old chicks jumped from 3000 kip to 5000 kip
(10,500 kip = 1 USD), while ducklings remained at 4000 kip each. Imports
from Thailand, a primary source for day-old chicks, were banned. It is
unclear if poultry imports from China and Vietnam have been addressed.
The five border checkpoints with Thailand were all instructed to be
vigilant in turning back poultry imports, but effective policing of the
border trade along the Mekong remains extremely difficult to implement.

End of Report.