The quantum of compensation for broilers culled during bird flu prevention programmes will be decided by the cabinet soon, said Agriculture and Agro-based Industry Muhyiddin Yassin.

He added that the move, agreed in principal by the government, was among several actions undertaken to protect the sustainability of the industry.

"We will do what is necessary to control and survey the situation as recommended by the World Organisation for Animal Health.

"All this is done to protect the industry and also to protect human lives," he told reporters after attending a forum in Kuala Lumpur yesterday.

(A table illustrating a proposed compensation scheme can be accessed through the Department of Veterinary Services website )

'Badly hit'

Muhyiddin said he will be chairing a special meeting with various industry stakeholders today to gather feedback.

He conceded that the industry was 'badly hit' by the H5N1 virus outbreak, but believed that the pace would pick up again as there are no new cases of infection.

On the suggestions that the government introduce a subsidised vaccination programme, Muhyiddin said that culling was scientifically proven to be more effective in preventing the spread of the virus, although it strained farmers.

The RM10 billion industry is presently suffering a severe demand slump.

The Federation of Livestock Farmers Association of Malaysia (FLFAM) has already urged members to reduce production between 30 to 40 percent and cap chicken prices at RM2.30, almost half the ceiling price.

According to an industry source, the production of chickens is still in excess while banks have been putting heavy pressure on commercial farmers of late.

Meanwhile, FLFAM committee member Jeffrey Ng when contacted reiterated that compensation was vital as some farmers in the affected regions in Perak, Penang and Selangor suffered heavy losses during the culling exercise.