When I first found this I thought it was a shaker of some sort since it had the three holes in the top. After I looked closer I realized that it is actually an incense burner. He has lost some of his tan coloring over the years.
The hole in the back is where you would place the incense (you used to be able to buy it in little cone shapes). I suppose you could also place a tealight candle in it.
He was manufactured by Goldcastle in Japan. I know, I know, another bird thing but I just can't help myself.