Word: swiftlets
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...Until recently, nests were mainly harvested from caves in the wild, and the trade was dominated by a ruthless and well-connected élite. Now, fueled by insatiable demand from prospering China, a regional boom in farming nests in purpose-built birdhouses - "swiftlet condos," as they're sometimes called - is democratizing the business. "It's recession-proof," enthuses Harry Kok, a retired Malaysian engineer who owns or has shares in five birdhouses and writes a blog on the subject from his Kuala Lumpur home. "The overheads are minimal. You don't have a factory with so many workers. Right...
...business has expanded so fast, and with such little oversight, that reliable numbers are hard to come by. There are perhaps 10,000 swiftlet buildings in Malaysia alone, which each year produce 144 metric tons of nests worth $160 million, reports the Malaysian government news agency Bernama. Nests from Thailand's 600 or more condos could be worth another $60 million, according to a 2007 Thai study, "Swiftlet Birds' Nests: Power, Conflict and Riches," by independent researcher Kasem Jandam. Judging by the number of swiftlet condos appearing in many Thai towns, these figures are probably gross underestimates. In Indonesia...
...little swiftlet has hatched a billion-dollar global business, including a subindustry of how-to books and bloggers who share tips on birdhouse construction and equipment. As with most properties, the value of a birdhouse depends on three factors: location, location, location. Before building one, advises Kok, you must survey the skies for a regular passage of swiftlets. Once constructed - a three-story birdhouse with room for about 40,000 nests costs roughly $100,000 - you must attract tenants. The maker of the Swiftlet Bazooka Tweeter claims it can broadcast "love calls" to birds flying up to a mile away...
...Given the risks of wild harvests, it's little wonder that the smart money has moved into the more genteel birdhouse business - although here, too, there are complications. Swiftlet condos have become local eyesores. Because nest theft is common, the untreated concrete structures often resemble secret weapons facilities, their roofs adorned with barbed wire and electric fences. Bird droppings are a potential health threat, too, while in some towns, the constant noise from Swiftlet Bazooka Tweeters and other callers has become "unbearable," admits...
...been able to control the building, never mind collect taxes on the profits. But the industry is growing too big to ignore, and there are signs that it might not stay lightly regulated for much longer. Last year Malaysian forestry officials and police raided more than a dozen illegal swiftlet farms across Sarawak, a state where only two of an estimated 1,500 birdhouses have licenses. The rest contravene local wildlife-protection laws that forbid swiftlet farms in urban areas. Sarawak's once profitable industry is grounded for now. But with unflagging demand from China, and increasing numbers of birdhouses...