US embassy cable - 05ALMATY4276

UNCLAS ALMATY 004276 
 
SIPDIS 
 
 
DEPARTMENT FOR EUR/CACEN MUDGE 
AGRICULTURE FOR FAS/DLP, FAS/ITP, FAS/ICD 
ANKARA FOR FAS ATTACHE HIGGISTON 
TASHKENT FOR ESTH 
PLEASE PASS TO USTR FOR PBURKHEAD 
 
E.O. 12958: N/A 
TAGS: EAGR, TBIO, ECON, ETRD, PGOV, KZ, Avian Influenza, USTR 
SUBJECT: KAZAKHSTAN: AI-RELATED IMPORT RESTRICTIONS ON 
POULTRY 
 
REF: STATE 216147 
 
1. Summary: This cable responds to Reftel.  Kazakhstan has 
placed import restrictions on poultry from countries where 
avian influenza has been detected.  Additionally, some 
restrictions are in place on poultry from safe origin 
countries that transited a country covered by the import 
ban.  Post is aware of one restriction affecting U.S.-source 
poultry that has transited China that is still in effect. 
Poultry prices in Kazakhstan have risen faster than the 
indices of consumer prices, but demand appears steady. 
Kazakhstan is not a member of the World Trade Organization. 
End Summary. 
 
2.  Kazakhstan currently has import bans in place on poultry 
from Cambodia, Indonesia, Japan, North and South Korea, 
Pakistan, Thailand, Vietnam, South Africa,  Malaysia, China, 
the Philippines, Mongolia and six regions of Russia: 
Novosibirsk, Omsk, Kurgan, Tyumen, Chelyabinsk, and the 
Altay region.  According to the Ministry of Agriculture, a 
decision to lift any of the bans will only be made on the 
basis of an official statement from the 
International Epizootic Bureau (OIE) that the avian 
influenza situation in a particular country had stabilized. 
 
3.  The import bans also extend to products that transit the 
affected countries and regions.  U.S. exports to Kazakhstan 
are thus affected when they transit China or the affected 
regions of Russia en route to Kazakhstan.  In September 2005 
the USG protested the China transit ban to the GOK, but 
received a negative response. 
 
4.  Imported poultry has about a 60% share of the 
Kazakhstani market.  Nearly 95% of those imports are from 
the United States.  The shipping route for most of those 
imports is via the Georgian port of Poti and arrives in 
Kazakhstan at its Caspian port of Aktau.  Thus, the import 
restrictions have not significantly affected U.S. exports. 
There is no indication that the availability of poultry has 
been affected since the internal measures taken to contain 
avian influenza cases that occurred in Kazakhstan were 
lifted. 
 
5.  Prices for poultry meat increased have increased only 
modestly since August, when the H5N1 virus was discovered in 
Kazakhstan.  Prices for eggs increased sharply in September 
and October, by 7.8 and 8.1%.  Eggs are mostly supplied by 
locals and it appears that the GOK's internal quarantine 
measures led to price increases.  However, it appears that 
the demand for eggs is sufficiently inelastic that it 
remained normal despite the price increases. 
 
6.  Post will pass the Reftel talking points to the relevant 
Ministries as requested by Reftel. 
 
7.  Post does not believe that the measures taken by the 
Kazakhstani government lend themselves to further response 
besides continued engagement on the issue of poultry 
transshipped through China. 
 
Ordway