THE owner of an exotic pet shop has seen turnover drop by up to ten per cent after bird flu hit the headlines.

Russell Mills, who runs John's Pet Centre in Middlesbrough, said he was seeing a drop in the demand and supply of larger exotic birds such as parrots.

As a result, he is selling fewer cages and bird feed.

Mr Mills is a member of the Federation of Small Businesses, which is offering interest-free loans to members if their business is affected by the potential bird flu epidemic.

Mr Mills said: "Our suppliers are less active and we are getting less requests for birds.

"As a result, we have seen turnover drop by between five and ten per cent.

"I'm just deciding at the moment whether to go ahead with this interest-free loan, which could be a help.

"I'm not sure what we will do if bird flu comes to Britain. I guess we would have to seek advice from the public health authorities. But hopefully it won't come to that."

Mr Mills said he was looking at diversifying the business and was hoping to get a licence to sell lizards, snakes and other reptiles to help make up for the shortfall of exotic birds.