US embassy cable - 05DAMASCUS6397

UNCLAS DAMASCUS 006397 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD, EAGR, SYAI 
SUBJECT: SYRIA'S AI-RELATED IMPORT RESTRICTIONS ON POULTRY 
 
REF: A) SECSTATE 216147 B) DAMASCUS 6129 
 
1. (SBU) Summary: The AI-related trade ban on all poultry 
imports into Syria, which expires next week, has not 
impacted poultry consumption and prices as much as has the 
Syrian population's fear and uncertainty of the exact nature 
of the threat posed by avian influenza.  In the past two 
months, the live-weight selling price of poultry has dropped 
approximately 50 percent and Syrian producers are currently 
operating at a substantial loss.  Though Syria does not 
import U.S. poultry products, an extension of the trade ban 
could affect transit trade of poultry products to Iraq from 
countries like Lebanon and Turkey.  End summary. 
 
2. (SBU) Ref A requested information regarding changes in 
market demand for poultry products and updates on any AI- 
related trade restrictions in Syria.  Syria's Ministry of 
Agriculture placed a two-month trade ban on all live, raw, 
and frozen poultry imports from all countries that will 
expire on December 16 (ref B).  Local producers do not 
expect that the ban will be extended and have commented that 
the SARG may allow pen-stock and grandparent birds, from NAI 
countries, into Syria before the end of this week.  The 
Ministry of Health, however, had indicated that the ban 
could be extended on a monthly basis. 
 
3. (U) With over 10,000 registered and unregistered broiler 
and layer chicken farms in Syria, the country is self- 
sufficient in poultry and egg production and is a net 
exporter of certain poultry products to neighboring 
countries.  Thus, the trade ban itself has not impacted the 
overall consumption and domestic prices of poultry.  On the 
other hand, fear and uncertainty about the nature and 
severity of avian influenza in humans as well as AI-related 
media hype have had a drastic negative impact on poultry 
prices in Syria since early October.  At the beginning of 
Ramadan in October, a month during which poultry producers 
normally realize high profit margins, live-weight poultry 
prices averaged 55 SP/kg (one USD/kg).  Within two weeks the 
price had dropped to 35 SP/kg, and after a month it had 
fallen to its current selling price of 24 SP/kg. 
 
4. (SBU) With poultry production costs ranging from 42 to 50 
SP/kg, poultry producers' cash flows are ebbing.  One Syrian 
poultry farmer estimates that the AI-related loss to Syrian 
producers ranges from 100 - 250 million SP/day (1.75 to 4.3 
million USD/day).  However, the eleven government-owned 
poultry production facilities operated under the General 
Organization for Poultry (Ministry of Agriculture) are not 
facing comparable losses, as they have a contractual 
agreement to sell broiler chickens to the Syrian military at 
an average price of 60 SP/kg.  Though most Syrian poultry 
producers are operating at a loss, they remain optimistic 
that selling prices will increase and thus continue at 
current production rates to ensure sizable future flocks. 
 
5. (SBU) Though the U.S. does not export poultry products to 
Syria, it is possible that a continued ban on all live, raw, 
and frozen poultry into Syria could hinder transit shipments 
to neighboring countries like Iraq.  Syria does not have 
freezing and cold-storage facilities in the ports of Tartous 
or Lattakia and could not serve as a major transit point for 
poultry shipments.  However in recent weeks a poultry 
supplier sought to ship poultry to Iraq from a port in 
Turkey via Syria, and post believes suppliers in Lebanon 
could pursue similar transit routes in the future. 
 
SECHE