MALAYSIAN bird’s nest exports to China will likely be down 40% to 2,300 metric tonnes in 2020 from a year ago due to weak demand amid the coronavirus pandemic, said the Veterinary Services Department (VSD).

Between January and April, the country exported just 16.34 metric tonnes of the product to China – a fraction of the 5,654.7 metric tonnes recorded for the whole of 2019.

“Export companies faced logistical problems due to the movement-control order (MCO), but bird’s nest firms can continue producing and exporting to China,” said VSD in a written reply to The Malaysian Insight.

“We just urge them to comply with the standard operating procedures against Covid-19.”

The usual annual demand from China is 70 metric tonnes of raw, cleaned nests and 2,500 metric tonnes of raw, uncleaned ones produced by swiftlets.

In a natural setting, the nests are built in caves, where they are harvested. In farms’ controlled environment, the swiftlets nest in specially built windowless buildings.

The virus crisis has led to plummeting demand owing to the Chinese market’s slow recovery, said Malaysia Association of Bird’s Nest Importers and Exporters chairman Chua Huai Gen.

“Demand has been weak since December, and the situation became worse after Chinese New Year because of the virus outbreak.

“Normally, based on previous trends, market demand would increase ahead of May Day (a major holiday in China), but that has not been the case this year.”

Chua said VSD even helped set up a special counter to speed up the processing of bird’s nest exports to assist the industry, but demand from China is not as encouraging as before.

The industry in Malaysia was worth RM1.1 billion last year.

VSD said the bird’s nest industry is an important contributor to the economy, and as such, the department will assist by providing advice and guidance to producers and businesses so that they can stay competitive.

Federation of Malaysia Bird’s Nest Merchants’ Associations president Allen Tan said demand from China has stagnated.

“In this climate, sellers are happy to maintain existing orders and export volumes. They are satisfied, considering the fact that many industries are affected by Covid-19 and businesses are facing difficulties.”

Exports were suspended for five weeks when China went into lockdown and Malaysia enforced the MCO.

Tan expects orders to pick up again, saying bird’s nest is consumed as a health product and customers will continue to seek it out.

“The industry is also preparing to meet orders for the Chinese Mid-Autumn Festival, which is in late September or early October.”

Considered a luxury food and favoured by the Chinese for boosting growth and the immune system, bird’s nest prices are determined by the market.

Raw, cleaned nests cost between RM3,000 and RM4,000 per kg, and are in higher demand than uncleaned ones. – July 3, 2020.