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Cablegate: Croatia: Avian Influenza-Related Trade

VZCZCXRO8462
RR RUEHDA RUEHFL RUEHKW RUEHLA RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK
RUEHYG
DE RUEHVB #1927/01 3420929
ZNR UUUUU ZZH
R 080929Z DEC 05
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC 5407
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHPH/CDC ATLANTA GA
RUEAUSA/DEPT OF HHS WASHDC
RUERAFX/DIR AFMIC FORT DETRICK MD
RUEKJCS/SECDEF WASHDC
RUCPDOC/USDOC WASHDC
RUEHRC/USDA WASHDC

UNCLAS SECTION 01 OF 02 ZAGREB 001927

SIPDIS

SIPDIS

DEPT PLEASE PASS TO DS/DSS, DS/IP, M/MED/JCTRIPLETT
FAS/CMP/DLP WETZEL AND MAGGINNIS
FAS/ITP/EAMED POMEROY AND FLEMING
CA/OCS/ACS RICK DOWELL
USAID FOR E&E/ECA/B/ANNE CONVERY

E.O. 12958: N/A
TAGS: TBIO SENV ECON EAGR PREL HR
SUBJECT: CROATIA: AVIAN INFLUENZA-RELATED TRADE
RESTRICTIONS AND WEEKLY UPDATE: DECEMBER 7

REF: A) STATE 216147 B) ZAGREB 1894 AND PREVIOUS

1) SUMMARY: As of December 7, no additional cases
of H5N1 have been confirmed in Croatia. The GOC
provided a translation of the national pandemic
influenza preparedness plan, which is posted on
Zagreb's SIPRNet site
(http://www.state.sgov/p/eur/Zagreb/index.cfm ). In
response to ref A, Post is providing information on
the domestic demand for poultry, which appears to
have rebounded, and trade restrictions that impact
the export and import of poultry. Post does not
believe that Croatian AI-related trade restrictions
will impact U.S. poultry product exports. Croatia
is a net exporter of poultry products. Of imports,
more than ninety percent comes from the EU, Brazil
and Argentina. END SUMMARY

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-----------------------------------
SNAPSHOT OF CROATIAN POULTRY SECTOR
-----------------------------------
2) According to Croatian Chamber of Economy
statistics, Croatia exported approximately 7,000
tons of poultry worth $18.5 million in 2004.
Approximately 50 per cent of poultry exports by
value went to the EU, 45 per cent to Bosnia and the
rest to other countries. Croatia is a net exporter
in the poultry sector, but imports from the EU,
Brazil and Argentina are increasing steadily on the
back of high demand from discount retailers.

---------------------------------------
EFFECT OF AI ON DOMESTIC POULTRY MARKET
---------------------------------------
3) According to Visnja Knjaz at the Croatian
Chamber of Economy, poultry producers complained
about a drop in domestic sales, although the fact
that statistics are compiled with a 90-day lag means
that final numbers are not yet available for the
period since the discovery of H5N1 in Croatia in
October. A representative from Pipo Cakovec, a
poultry producer, estimated a 20-30 per cent decline
in domestic consumption immediately after avian
influenza was identified in Croatia, but says that
sales have since recovered.

--------------------------------------------- ---
IMPACT OF TRADE RESTRICTIONS ON CROATIAN EXPORTS
--------------------------------------------- ---
4) The EU has narrowed its existing ban on imports
of live birds including poultry, wild feathered game
meat and unprocessed feathers to the areas within
Croatia where avian influenza was isolated
(Viroviticko-Podravska and Osjecki-Baranjska
counties). While exports to the EU have not been
affected, exports to Serbia and Montenegro (SaM) and
Bosnia and Herzegovina (BiH) have been impacted by
import restrictions. Davor Popovic, Regional Sales
Manager for food processor Podravka, said SaM
continues to ban the import and transit of all
poultry products (including canned soup) from
Croatia and that Podravka is losing sales in SaM and
in Macedonia. Knjaz said that evolving BiH trade
restrictions have created uncertainty for Croatian
exporters but that Croatian companies are still
managing to get their products into BiH.

-------------------------------------
TRADE RESTRICTIONS ON POULTRY IMPORTS
-------------------------------------
5) Croatia imports most of its poultry from the EU,
Brazil and Argentina and none of these countries are
affected by import restrictions. However, the GOC
did implement import restrictions as a precaution
against the threat of AI in October 2005. The GOC
restricted the import and transit of live poultry
and wild birds, baby chicks, eggs, poultry meat and
products, and animal feed containing poultry from:
Hong Kong, Indonesia, Japan, South Africa, South

ZAGREB 00001927 002 OF 002


Korea, Cambodia, Kazakhstan, China, Laos, Mongolia,
Russia, Romania, Thailand, Turkey and Vietnam. This
ban does not include heat-treated poultry products.

FRANK

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