KUALA LUMPUR: Bird's nest processor Mymbn Bhd
has yet to fully quantify the financial impact of the temporary suspension of bird’s nest exports to China.
In a filing with Bursa Malaysia today, the company acknowledged that the suspension has disrupted operations, supply chains, and revenue streams tied to the China market, one of its major export destinations.
To date, MYMBN is unable to fulfil orders worth approximately RM2.50 million due to the suspension.
"Regardless, the company continues to incur monthly overhead costs of approximately RM92,000 despite the suspension," it noted.
The company added that it has taken immediate steps to address the situation, including collaborating with regulatory bodies to resolve the issues behind the suspension and expedite its resolution.
Apart from that, MYMBN is exploring strategies to strengthen its presence in alternative markets to reduce dependency on China.
"The group's operational workflows are also being optimised to manage inventory and production levels efficiently while maintaining product quality," it said.
On Dec 26, MYMBN disclosed in a filing with Bursa Malaysia that it had received a notice from Malaysia's Department of Veterinary Services (DVS) regarding the temporary suspension of bird's nest product exports to China, effective Dec 25.
The suspension was prompted by outbreaks of Newcastle Disease (ND) in Malaysia, as reported to the World Organisation for Animal Health (WOAH).
However, the DVS, in a separate statement today, confirmed that no cases of ND have been detected on the premises or bird’s nest products monitored by the department.
"Due to this export suspension, a total of 22 consignments, weighing 1.769 tonnes and valued at RM7.23 million, involving 13 export companies, have faced clearance issues at China’s entry points,” the DVS said.
The suspension was initiated at the request of China’s General Administration of Customs (GACC), following reports of ND outbreaks in chickens and ducks in Malaysia between March and June 2024, as reported to WOAH, it said.
To address the issue, the DVS added it has submitted a comprehensive report to the GACC detailing the outbreak status and the measures taken to manage ND in Malaysia of which the report also assures that bird’s nest products exported to China are free from the disease. - Bernama
