Official sources in China report that Secretary for Food & Health York Chow has lowered the response level for avian flu to 'alert' from 'serious' after assessing the current risk the virus poses and environmental hygiene at retail outlets.

The market operation is reported to be generally smooth and the environmental hygiene of retail outlets upgraded. Samples collected from chicken farms, wholesale market and retail outlets have been confirmed free of H5N1 avian flu.

On the proposed buy-out package, Mr Chow said most live poultry retailers will opt to wind up their business, while some may want to remain in the trade.