US embassy cable - 05ZAGREB1927

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. 
 
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EFFECT OF AI ON DOMESTIC POULTRY MARKET 
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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. 
 
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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. 
 
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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