Feathers fly as H7N9 hits China's down industry

Yang Cheng, chairman of Chenglong Eider Down Products Co in Jiangxi, said the materials shortage has prompted the company to halt production since late April. With more than 100 workers, it churned out an output value of 180 million yuan last year.

The shortage has sent prices of down feathers skyrocketing and the costs could ultimately be transferred to customers through high prices of down products, experts have warned.

Many companies then either have to bear the higher costs to proceed with orders or choose not to fulfill the orders at the cost of business credit.

"A butcher shop contacted me saying that the price for the down feathers of a white duck was 3.1 yuan. I did not accept it as the fee was half that a year ago," said Yang Cheng.

"The price hikes are beyond imagination and have not been seen in decades," added the company chairman.

"The more we buy, the more losses we will suffer," said Chen Xuehui, chairman of Xinhui Eider Down Products Co. He explained that when the company signed product orders before February, the price of down feathers was 300,000 a ton. Now, the price has doubled.

"We're using the inventory and buying a small amount of new down feathers to cope with the orders to be delivered in July," said Chen. "For the remaining orders, we have to wait. Based on current costs, we will suffer a loss of millions of yuan."

Lu Yifeng, president of Hangzhou Hualong Eider Down Products Co, said that most of the firm's orders were signed last year: "If we fulfill them, we will face losses. If we wish to avoid the losses, we have to breach the orders but then our business credit will be damaged. This is a dilemma."