Lebanon and Egypt faced an AI scare crisis during the period November 2005 to April 2006. This came upon news in the media that Turkey has been hit with HPAI. Media got very active hosting ill informed commentators who exaggerated the fears amongst farmers and consumers. Farmers in Egypt cancelled their orders of day-old chicks. Consumers in Lebanon almost stopped eating chicken meat.
Our company Tanmia in Lebanon which produces fresh and further processed broiler meat resorted to freezing and storing in own and rented freezers all non-sold fresh dressed broilers and broiler meat which amounted to 90 days of full production. The market suddenly came back to normality by early May 2006 but with close to 50 % supply. This gave Tanmia the chance to sell its stock at prices that exceeded its cost of production plus storage.
Wadi Poultry in Egypt only sold day-old chicks (D.O.C.). It resorted during the period November 2005 to February 2006 to selling them at 25 % of their cost. At the same time it molted 50 % of its parent flocks. When HPAI hit Egypt in February 2006, Wadi Poultry kept following the same policy while placing new parent flocks as scheduled. This policy was based on its ability to exercise strict bio-security measures on its farms and on the fact that more than 50 % of the broiler parent population was wiped out. Prices of D.O.C. tripled the cost of production starting May 2006.
In both situations recovery of losses as a result of the AI scare or outbreak as well as profiting by the end of 2006 came about from appropriate policies of handling production more than communicating with farmers and consumers.