There were mixed emotions among members of the poultry industry yesterday as the deadline to accept a government compensation in lieu of closing their businesses came and went.

To minimize the risk of bird flu, the government offered a HK$1.23 billion buyout compensation package for the live-poultry traders to voluntarily close their businesses.

Those who choose to stay in the trade can continue doing business until central slaughtering is implemented around 2010.

Yesterday was the last day for traders to indicate whether they would accept the compensation or close.

Live-poultry retail representatives said that as of yesterday about 75 percent of the 468 retailers have returned their licenses, falling short of the government's threshold of 85 percent for the proposed buyout.

Hong Kong Poultry Wholesalers & Retailers Association Chairman Steven Wong Wai-chuen said that about 120 retailers would stay in the live-poultry business for the next two years.

Wong himself returned his license last week and will leave the trade.

Having been in the live-poultry business for 29 years, he said he is sad to leave the trade.

However, he said he had to leave after considering that he would get more compensation if he quits now than the profit he would be able to make in the next two years.

He is planning to start a new business selling frozen chicken and pork.

"As there will be no live chickens in the future and the price of live pork is expensive, I think there is a prospect in selling frozen meat," he said.

He has applied for the license to sell frozen meat and said he expects to start doing business in November.

Lui Chun-sing, a retailer in the Tin Wan fresh market, returned his license two months ago.

Although he regrets leaving the trade, he said he believes the future business environment is uncertain for the trade, and he is happy with the amount of compensation.

The response of the live-poultry wholesalers to the compensation offer was less enthusiastic. Hong Kong Poultry Wholesalers Association Chairman Tsui Ming-tuen said that only about 35 of the 71 wholesalers have returned their licenses.

The retailers were forced to leave because they thought they could get some money before they retire, he said.

Some wholesalers, like Tsui, have decided to continue doing business, "because most Hong Kong people like eating live chicken".

No other job like the live-chicken trade could bring wholesalers about HK$30,000 a month, Tsui said.

He added that there is still a market for live chickens in Hong Kong. For example, sales of live chickens were very good during the Mid-autumn Festival.

If the government decides to implement central slaughtering in two years, they are willing to stay in the trade, he said.

As for the 52 chicken farmers in the territory, Wong Yee-chuen, chairman of the New Territories Chicken Breeders Association, estimated that about half of them have applied to return their licenses.

Some have chosen to leave the business because they are old and have no confidence in the breeding market in the future, he said.

Wong said he has chosen to stay in the business because he thinks he is still young and he wasn't satisfied with the amount of compensation.

(HK Edition 09/25/2008 page1)