This record is a partial extract of the original cable. The full text of the original cable is not available.

231035Z Mar 06

UNCLAS SECTION 01 OF 02 ANKARA 001524 
 
SIPDIS 
 
STATE FOR EUR/RUS, OES/STC, EB/TPP/ATP, EB/TPP/BTA 
HHS FOR WSTEIGER/PBUDASHEWITZ 
USAID FOR BLANCHET, TROSTLE AND CARROLL 
FAS FOR ITP/MACKE/THOMAS, CMP/Molstad 
FAS PASS FSIS AND APHIS 
VIENNA PASS APHIS 
BRUSSELS PASS APHIS/FERNANDEZ 
GENEVA PASS HEALTH ATTACHE 
 
E.O. 12958:N/A 
TAGS: ETRD EAGR KPAO TBIO AMED TU CASC EAID SENV ECON
SUBJECT:  AI Continues to Plague Turkish Poultry Sector 
 
Ref:  (A) Ankara 5119  (B) Ankara 6105  (C) Ankara 6138 
 
      (D) Ankara 6232  (E) Ankara 6291  (F) Ankara 6430 
     (G) Ankara 6514  (H) Ankara 6605  (G) Ankara 7034 
     (J) Ankara 7318     (K) Find number and other #s 
 
¶1.  (U) Summary. The AI outbreak continues to plague the 
poultry sector in Turkey albeit at a reduced pace.  AI 
has been confirmed in 151 locations in 28 provinces 
throughout Turkey, according to the most recent report 
from the Ministry of Agriculture and Rural Affairs. 
Poultry consumption remains down although some poultry 
companies have shown more resiliency than others.  End 
summary. 
 
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Turkish Provinces with Confirmed AI cases 
----------------------------------------- 
 
¶2.  (U) According to the Ministry of Agriculture and 
Rural Affairs, Avian Influenza has been confirmed in 151 
locations in 28 provinces throughout Turkey as of March 
15, 2006.  Only one outbreak has occurred in a commercial 
poultry unit and that was in a small-scale commercial 
(broiler) poultry flock in eastern Anatolia.  All other 
outbreaks occurred in backyard (village) poultry flocks. 
The Government of Turkey (GOT) instituted strict 
quarantine measures and was successful in eliminating the 
virus in 64 of the 151 locations. There are six 
additional suspected cases of AI in backyard flocks. 
There are also 24 positive cases and eight suspected 
cases of AI in wild birds.  As of March 15, 2006, a total 
of over 8,000 birds have died from the disease and almost 
2.3 million birds have been culled since the first 
outbreak in October 2005. 
 
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Government Action 
----------------- 
 
¶3. (U) The GOT compensated the poultry sector for losses 
incurred due to the culling of 13.5 million spent hens. 
In addition, according to poultry industry contacts, the 
GOT may allow spent hens, primarily from the egg 
industry, to be sent to rendering facilities.  In the 
past, spent hens were traditionally sold to small farm 
holdings.  Since the outbreaks, spent hens were culled 
and destroyed.  Under this plan egg producers will at 
least be able to recoup some costs.  Producers and 
rendering facilities will be paid YTL 0.30 and YTL 0.10 
per chicken, respectively.  In Turkey, there were a about 
40 million layers before the initial outbreak in October 
¶2005.  It is estimated that there are now about 26.5 
million layers. 
 
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Consumption Still Down 
---------------------- 
 
¶4. (U) Consumption of poultry products, which decreased 
significantly as a result of the first outbreak in 
October, is beginning to recover.  However, it is 
currently estimated that poultry meat and egg consumption 
is still 30 - 40 percent below last year's levels. 
Poultry meat and egg prices are currently about equal to 
the cost of production and are expected to increase 
during the next couple of weeks.  Industry sources are 
expecting a major recovery of the poultry sector during 
spring and summer when poultry consumption tends to 
increase. 
 
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Feed Costs 
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5 (U) On March 11, 2006, the GOT increased the import 
duty on soybeans from zero percent to 10 percent and on 
soybean meal from eight percent to 13.5 percent.  The 
duty increase will significantly increase the cost of 
poultry and egg production.  Any hopes of a quick 
recovery in the sector will be hindered by the duty 
increases.  Since Turkey grows only very small quantities 
of soybeans (ranging between 30,000 and 50,000 MT in 
recent years) with no domestic substitute the duty will 
immediately affect production costs.  Industry sources 
are projecting that the total additional cost to the 
industry will be around USD 40 million.  They are also 
concerned that the GOT might cancel support previously 
pledged to the poultry sector as a cost savings measure. 
 
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Comment 
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¶7. (SBU) Comment:  Although overall consumption remains 
lower than normal, some poultry companies are showing 
more resiliency than others.  Some of the larger 
companies have spent the last several years 
differentiating their companies from the competition, 
particularly on poultry quality.  As a result, while many 
companies are suffering major losses, a few companies 
have been able to weather the storm because their 
products as associated with better quality.  The increase 
in soybean duties is particularly disturbing since, 
according to several sources, Foreign Trade officials 
made the decision to increase duties unilaterally without 
any consultation with the Ministries of Agriculture and 
Industry as well as the private sector.  It is even more 
disturbing that Foreign Trade officials have publicly 
stated that corn can be substituted for soy in feed 
rations, which shows a total lack of understanding of the 
poultry and feed sectors.  End Comment. 
 
WILSON