The overall goal of the paper is to measure the net impact of AI outbreak during 2005 similar to 2006 on poultry producers in rural China. Field survey shows that AI outbreak has significant impact on income from poultry agribusiness of poultry producers. Conditional on other variables invariant, we find that AI outbreak averagely reduces per capita income from poultry production by 65%, and per capita income by 29%. However AI outbreak has no significant impact on income from livestock, planting and off farm employment of sample households. The results also suggest that, especially for scale poultry producers, the relevant support of financing and animal disease prevention from national government is very necessary in the process of recovery.
