Tuesday August 9, 2011

Lull in lucrative industry expected as price of bird’s nest drops after ban by China

By JACK WONG
jackwong@thestar.com.my

KUCHING: The price of unprocessed white bird’s nest in Sarawak has dropped by more than 10% after China banned the import of Malaysian bird’s nest a month ago.
Sarawak Bird’s Nest Suppliers Association secretary Colin Wong Chung Onn said the price had slipped to around RM3,900 per kg from an average of RM4,500 per kg due to declining demand.
He said the price varied according to quality and grades.
China, which has been importing from only Malaysia and Singapore, banned Malaysian bird’s nest after it was found to contain nitrite.
Last year, the association estimated that there were some 5,000 birdhouses statewide, more than doubled the number in 2009.
The number is believed to have grown significantly in the past eight months as big-time investors have been constructing double or three-storey concrete shophouses to breed the swiftlets, as it is a lucrative business.
Sarawak’s first swiftlet eco-park, a RM40mil joint venture between the Sarawak Economic Development Corporation (SEDC) and peninsula-based Borneo Resources Synergy Sdn Bhd, is expected to be ready in Balingian, Mukah Division next year. The park will have 40 three-storey units and 15 three-storey bungalow units.
Early birdhouses were mostly converted from unoccupied or under-utilised wooden or concrete shophouses or residential homes. Most of them are found in Mukah and Sarikei Divisions.
Wong said the ban by China would discourage new investment in the industry.
“Most of the local birdhouse operators sell their raw nests to the collectors or middlemen. More than half of the collectors send the bird’s nests to Indonesia for processing,” he told The Star yesterday.
Wong said some of the processed bird’s nests were sold back to Malaysia to be exported under the Malaysian brand.
He said the association suspected that irresponsible traders in Indonesia or China could have processed the bird’s nests using excessive nitrite to dampen the industry.
“We are now lobbying for China to accept 30 parts per million of nitrite in bird’s nests as this level is allowed by the World Health Organisation as a preservative in foodstuff,” he added.
Wong said the association was affiliated to the Malaysian Federation of Bird’s Nest Merchant Association, which is now working closely with the Health Ministry to resolve the issue with the authorities in China.
“We hope to get a response from the Chinese authorities soon,” he said, adding that it was impossible to get zero nitrite level in bird’s nests.
Health Minister Datuk Seri Liow Tiong Lai said last week that his ministry was carrying out a study to develop a specific standard for swiftlet nests and its products under the Food Regulations 1985.
Liow said his ministry would work with the Agriculture and Agro-based Ministry to ascertain the safety of raw swiftlet nests at farm level.