VZCZCXRO9020
RR RUEHAG RUEHDF RUEHIK RUEHLZ
DE RUEHVI #0867/01 0821028
ZNR UUUUU ZZH
R 231028Z MAR 06
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC 2832
RUEHRC/USDA FAS WASHDC 1107
INFO RUEHGV/USMISSION GENEVA 1307
RUEHBS/USEU BRUSSELS
RUCNMEM/EU MEMBER STATES

UNCLAS SECTION 01 OF 02 VIENNA 000867 
 
SIPDIS 
 
SIPDIS, SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD WTO TBIO KFLU AU
SUBJECT: AMBASSADOR'S MEETING WITH AGRICULTURE MINISTER 
PROELL 
 
 
Summary 
------- 
 
¶1.  (SBU) During Ambassador McCaw's March 6 introductory 
call on Austrian Minister of Agriculture and Environment 
Josef Proell, Proell called for additional progress on NAMA 
and services in the WTO negotiations, before the EU would 
make concessions on agricultural market access.  Proell 
touted the April 4-6 Coexistence Conference, hosted by the 
European Commission and his ministry, as a starting point 
for developing EU-wide rules on coexistence.  Given 
differing opinions between many member state researchers and 
the European Food Safety Agency (EFSA), Proell maintained 
that EFSA should work towards a common EU view on particular 
GMOs.  Proell admitted that Austria might eventually have to 
give up its national GMO prohibitions in light of the 
anticipated WTO ruling against the EU.  However, with 
national elections due this fall, Proell predicted there 
would be no movement on this issue until after the 
elections.  According to Proell, the appearance of avian flu 
in Austria has cut poultry production by 20 percent for many 
farmers and poultry consumption by 40 percent.  Proell 
highlighted Austria's efforts to increase the percentage of 
bio-fuels in the overall fuel mix from three percent to 7-8 
percent in the next several years.    End summary 
 
 
WTO Negotiations 
---------------- 
 
¶2.  (SBU) During a March 6 meeting with Ambassador McCaw, 
Minister of Agriculture and Environment Josef Proell 
reiterated the GoA position that negotiators need to make 
progress on NAMA and services before the EU can make 
concessions on agricultural market access.  Proell conceded 
negotiations will be difficult.  Proell candidly admitted 
that Austrian farmers cannot compete with U.S., Brazilian, 
or even Hungarian and Czech farmers.  According to Proell, 
the average Austrian farm is 16 hectares and 70 percent of 
farmers live in mountainous areas.  Proell claimed that, 
without subsidies, most Austrian farmers would go out of 
business.  Regarding the EU's agricultural spending, Proell 
insisted that the figures are misleading: although 
agricultural spending represents 40 percent of the EU's 
budget, this is only two percent of the member states' total 
budgets. 
 
 
Biotechnology 
------------- 
 
¶3.  (SBU) Proell pointed out that approximately 700 
scientists, farmers and government officials will attend the 
April 4-6 Coexistence Conference sponsored by the European 
Commission and the Ministry of Agriculture and Environment. 
Proell said he views the conference as a starting point for 
the EU to develop common coexistence rules, although he 
conceded that the actual formulation of common rules will 
not occur during the Austrian Presidency. 
 
¶4.  (SBU) Proell reiterated his desire to maintain GMO-free 
zones for crop cultivation in Austria.  Proell noted that 
Austrian dairy farms import grains from Argentina and 
Brazil, estimating that 70 percent of these imports are 
GMOs.  Proell stressed that what Austrians really opposed 
was planting biotech seeds. 
 
¶5.  (SBU) Proell emphasized that disagreements among 
scientists on the evidence is the main reason why Austria 
opposes biotechnology.  He said the European Food Safety 
Agency (EFSA) should encourage the multitude of researchers 
to develop a common EU view on particular crops.  Proell 
added that differences of opinion between EFSA and member 
state researchers complicate the process.  The GoA will 
present further ideas on this subject to the EU 
Environmental Council. 
 
¶6.  (SBU) Commenting on the anticipated WTO decision against 
the EU moratorium on new approvals, Proell conceded that 
Austria might ultimately have to give up its national GMO 
prohibitions.  However, he stressed that the GoA would stand 
pat until the WTO issues its final report.  Proell added 
that the GoA would most probably not move to modify its 
current system until after national elections this autumn. 
 
 
Avian Flu 
--------- 
 
 
VIENNA 00000867  002 OF 002 
 
 
¶7.  (SBU) Noting that the Ministry of Health has the GoA 
lead on avian flu, Proell opined that an outbreak might have 
serious political consequences, if there is a perception 
that the government is mishandling the issue.  Currently, 
farmers must house poultry indoors until mid-April. 
According to Proell, this requirement is problematic, 
because farmers had been encouraged not to house poultry 
under new EU animal welfare legislation.  This decision has 
imposed huge financial costs on poultry farmers.  Many 
farmers have lost 20 percent of their production and the 
industry is suffering from a 40 percent decline in poultry 
consumption.  Proell said the GoA is considering subsidizing 
the farmers for these losses. 
 
 
Bio-fuels 
--------- 
 
¶8.  (SBU) Proell noted that Austria will open a new bio- 
ethanol plant in 2006.  Three percent of Austrian fuels are 
already bio-diesel.  Proell expects that over the next 
several years the bio-diesel percentage will rise to 7-8 
percent.  Asked whether Austria might use biotech crops for 
bio-fuels, Proell admitted that it would be an easier 
concept to sell to the Austrian public than biotech foods 
for human consumption.  Nonetheless, Proell repeated that it 
would be critical to address the coexistence issue. 
 
MCCAW