But tourism bosses have expressed fears that the disease could ruin confidence among travellers looking to come here.

Prime Minister Thaksin Shinwatra insisted yesterday that the government could control the latest outbreak, amid mounting fears about the economic impact. Tourism and poultry exports are critical industries for the Kingdom.

"The latest outbreak will not affect Thailand's chicken exports because we have already shifted our focus to cooked chicken," Thaksin said.

The shift to processed chicken has helped rebuild the battered industry. With 270,000 tonnes shipped overseas last year, chicken exports earned Bt31.8 billion.This was near levels seen before bird flu "emerged" in late 2003.

Adirek Sripratak, president and chief executive officer of Charoen Pokphand Foods Plc, said that the company's exports focused on processed products. Total export volume is expected to grow by 25 per cent to 100,000 tonnes this year.

A few years ago, CPF moved to enclose and compartmentalise its operating systems to ensure food safety and disease control.

"Our exports continue growing thanks to our high-quality products from the standardised farms," he said. The firm has a system to trace products in the event of quality problems.

CPF's layer and chicken farms also have a bio-security system, which it claims prevents disease and ensures cleanliness "from farm to table".

Panya Chotitawan, president of Saha Farms Co Ltd, said the refresh avian influenza affected only small breeders. Chicken exporters say they have serious control quality from farms to exports.

He suggested the government should rush to register breeders to tighten disease controls.

Kornnarong Ritruechai, deputy director-general of Internal Trade Department, said the bird-flu outbreak could affect the sale of chicken and eggs on the domestic market.

However, the outbreak has yet to hit domestic prices for egg and chicken, as in the past. The price of fresh chicken was Bt45-48 per kilogram yesterday, down from Bt55.9 per kilo last year.

Vichai Techawattannant, president of the Hen-Egg Farmers Traders and Exporters Association, said the outbreak had less impact on egg sales because customers understood the situation well.

Currently, eggs cost Bt1.70 each at farms, which is a fall of Bt0.20 from May, because of increased production.

Vichai said the association may have to increase prices because farmers were losing money from lower prices.

But the export of eggs is expected to rise by 25-28 per cent this year to 13-14 million. Thailand exported 10 million eggs last year.

"Overseas markets still have confidence in Thai eggs because we have a closed-farm system," he said.

But tourism agencies worry that the possible spread of bird flu in Thailand, and neighbouring Laos, could hurt the industry just as it is rebounding from the December 2004 tsunami.

"We have received bookings for the high season, which are normally made a few months in advance," Suparerk Soorangura, former president of the Association of Thai Travel Agents, told AFP.

"But if Thailand fails to make it clear right now that the country can control the bird flu, tourists will panic about the outbreak and decide not to come here later this year."

The tourism industry, which accounts for 6 per cent of the Thai economy, has rebounded since the beginning of this year after the tsunami in December 2004.

The industry expects 13 million tourist arrivals this year, and revenue of about US$12.3 billion.

The kingdom was criticised for being slow to respond to the first bird-flu outbreak flu in 2003, but now is considered one of the countries best prepared to battle the disease.

Business Reporters

The Nation, AFP