Sales of chickens have plunged by 30 percent following a new outbreak of the deadly H5NI bird flu virus, officials said Saturday.

"At a meeting two days ago, chicken dealers said that sales have plunged by 30 percent in West Malaysia," Lee Chong Meng, adviser to the Selangor and Federal Territory Poultry Traders Association, told AFP.

He said commercial farms in West Malaysia produce some 35 million chickens a month for domestic demand and the usual daily consumption is 1.2 million chickens.

"Following the outbreak, people are avoiding chicken. There are about 300,000 chickens in surplus supply daily now," he said.

A concern

Lee said the fall in demand was a concern to the country's poultry industry which employs thousands of workers.

"It is a concern to us. If the situation continues it will cause heavy losses to commercial farm owners," he said.

On Monday, Malaysia confirmed its first outbreak of avian influenza in more than a year after 40 free-range chickens died in four villages near Kuala Lumpur.

An initial group of 10 people from the affected villages who were hospitalised late Tuesday complaining of flu symptoms and respiratory problems have all tested negative for the virus.