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

UNCLAS SECTION 01 OF 02 TEL AVIV 001902 
 
SIPDIS 
 
STATE FOR NEA/IPA, NEA/RA, OES/PCI, AND OES/IHA 
 
E.O. 12958: N/A 
TAGS: KFLU TBIO ECON EAGR IS KBWG ENVIRONMENT SCIENCE AND TECHNOLOGY ECONOMY AND FINANCE
SUBJECT: AVIAN INFLUENZA: ISRAELI POULTRY FARMERS RECEIVE 
COMPENSATION 
 
REF: A) JERUSALEM 1151, B) TEL AVIV 1135, C) TEL AVIV 
 
1087 
 
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SUMMARY 
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¶1.  To curb the spread of the H5N1 avian influenza virus 
in Israel in March 2006, the Israeli Ministry of 
Agriculture ordered the culling of approximately 1.3 
million birds, including broilers, layers and breeding 
stock (turkeys and chickens).  According to a USDA GAIN 
Report issued May 10, 2006, the number of culled birds 
was equal to the production of 2,000 tons of poultry meat 
and represented a five percent reduction in total monthly 
production.  There appeared to be no significant changes 
in poultry consumption among consumers.  Because initial 
culling and disinfection efforts were slow, the GOI 
allocated USD 1.1 million to hire additional manpower. 
At the beginning of the AI outbreak, the GOI announced a 
compensation plan based on the type of poultry and age of 
the birds.  As of April 11, 2006, the GOI had completed 
compensation of USD 4.6 million for direct damages to 
poultry farmers whose poultry flocks were destroyed.  A 
special committee was formed to discuss compensation for 
indirect damages to poultry breeders due to the AI 
outbreak, but decisions on further compensation are still 
pending.  End summary. 
 
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NO SIGNIFICANT CHANGES IN POULTRY CONSUMPTION 
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¶2. According to a local survey, about 38 percent of the 
Israeli public briefly abstained from eating poultry due 
to the AI outbreak.  This trend appeared to be especially 
true for families with children.  Immediately following 
the outbreak, there also was a temporary increase in the 
prices of beef, fish, and soy-based meat substitutes. 
More significant, though, is that there was an increased 
demand for poultry during the Passover holiday in April, 
which shortly followed the AI outbreak.  The decrease in 
poultry meat production did not result in a significant 
shortage in the availability of poultry in the 
marketplace during this timeframe. 
 
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PRODUCTION SUSPENDED FOR 30 DAYS FOLLOWING DISINFECTIONS 
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¶3. Poultry production was suspended at affected farms 
for thirty days from the end of the disinfection process. 
Initially, the process of culling and burial of carcasses 
was slow due to both manpower and equipment shortages. 
To better facilitate culling and cleanup efforts, the GOI 
allocated USD 1.1 million to hire additional manpower, 
including approximately 160 additional workers were 
contracted by the Ministry of Defense to assist in 
culling and cleanup efforts within the 3-kilometer 
sterile zones. 
 
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POULTRY GROWERS COMPENSATED / NO NATURAL DISASTER 
DECLARED 
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¶4. At the beginning of the AI outbreak, the GOI 
announced a compensation plan based on the type of 
poultry and age of the birds.  As of April 11, 2006, the 
GOI completed compensation of USD 4.6 million for direct 
damages to poultry farmers whose flocks were destroyed. 
Other economic losses include USD 6.22 million for loss 
of income due to the suspension of production, USD 70,000 
for the destruction of feed from affected flocks, USD 
five million for the destruction of hatchlings, and loss 
of income to owners of slaughterhouses in affected 
regions of USD 110,000.  Additional costs of containment, 
borne by the GOI, included USD 1.55 million for culling 
and burial and USD 1.11 million for disinfections and 
cleaning.  According to compensation tables published by 
the Ministry of Agriculture, the maximum compensation 
rates received by affected poultry growers were: USD 
23.71 per mature male turkey, USD 12.05 per female 
turkey, USD 2.50 per broiler and USD 5.94 per Rown Hen 
layer.  At the beginning of the outbreak, the Israeli 
Poultry Growers Association requested that the H5N1 avian 
influenza outbreak be declared a natural disaster. 
However, the Ministry of Agriculture declined to do so. 
In addition, a special committee was formed to discuss 
compensation for indirect damages to poultry breeders, 
estimated to be around USD seven million in addition to 
the direct costs described above; but decisions on 
further compensation are still pending. 
 
JONES