The Ministry of Health said on Thursday samples from dead chickens have tested negative for the deadly H5N1 strain of bird flu, but a nationwide scare about the disease has had an incalculable cost on its economy.

Ethiopia sent blood samples from 14 chickens to be tested in Italy after 7,000 died of an unidentified disease in a state-owned farm in southern region.

The remaining chickens were incinerated and the government banned movements of poultry products including chickens along a 60-km (38-mile) area surrounding Gubre Poultry Farm.

"Results from samples sent to an animal health centre in Italy have proved negative," Seleshi Zewedie, director of animal health, told journalists. "But the impact of the reports of the disease on the economy is incalculable."

Seleshi said the bird flu scare had sent the price of live hens spiralling down to 5 birr (56 U.S. cents), a fifth of the 25 birr ($2.9) they had traded at before the scare.

Many supermarkets had stopped selling chicken because of falling demand, he said, adding that small farmers had been worst hit by the crisis.

Ethiopia is one of the world's poorest countries, suffering periodic famines and heavily dependent on food aid.

Seleshi said the government would launch a public awareness programme on Friday to allay fear caused by reports of bird flu.

The government says the country has 35 million chickens, most of which were owned by peasant farmers.