VZCZCXYZ0032
PP RUEHWEB

DE RUEHLP #0550/01 0591507
ZNR UUUUU ZZH
P 281507Z FEB 07
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 2652
INFO RUEHAC/AMEMBASSY ASUNCION 6585
RUEHBO/AMEMBASSY BOGOTA 3907
RUEHBR/AMEMBASSY BRASILIA 7794
RUEHBU/AMEMBASSY BUENOS AIRES 5038
RUEHCV/AMEMBASSY CARACAS 2274
RUEHPE/AMEMBASSY LIMA 2374
RUEHMD/AMEMBASSY MADRID 3341
RUEHMN/AMEMBASSY MONTEVIDEO 4441
RUEHQT/AMEMBASSY QUITO 4915
RUEHSG/AMEMBASSY SANTIAGO 9505
RUEHRC/USDA FAS WASHDC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUMIAAA/USCINCSO MIAMI FL
RUEHUB/USINT HAVANA 0175
RHEHNSC/NSC WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS LA PAZ 000550 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/AND 
TREASURY FOR SGOOCH 
LIMA FOR USDA/FAS/EPHILHOWER 
 
E.O. 12958: N/A 
TAGS: EAGR ECON ETRD BL
SUBJECT: FOOT AND MOUTH OUTBREAK: VENEZUELA TO IMPORT 
BOLIVIAN BEEF? 
 
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Summary 
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¶1. (SBU) The weakening of the institutional structure of 
Bolivia's animal health service (SENASAG) due to staff 
changes could endanger the progress that the U.S. Animal and 
Plant Health Service (APHIS) has made in combating animal and 
plant illnesses, and, in fact, may have already done so.  An 
outbreak of foot and mouth disease was confirmed on January 
26, halting beef, dairy, and pork exports to Peru, Ecuador, 
Colombia, and Brazil.  APHIS staff told Econoff on February 8 
that the outbreak was under control and had not affected the 
departments of Beni and Pando, where USDA funds have financed 
foot and mouth eradication efforts since 2001.  On February 
9, the press reported that the Venezuelan government plans to 
import 10,000 tons of Bolivian beef in 2007, beginning the 
week of February 12.  However, it seems that such imports 
have been put on hold.  President Morales was quoted in the 
press on February 24 promising to negotiate the export of 
beef to Venezuela to mitigate the damage to the sector caused 
by massive flooding, which has affected around one-third of 
the nation's cattle (reftel).  End summary. 
 
--------------------------------------------- -- 
SENASAG -- Weakening of Institutional Structure 
--------------------------------------------- -- 
 
¶2. (SBU) The U.S. Animal and Plant Health Inspection Service 
(APHIS) has worked with SENASAG, Bolivia's APHIS-equivalent, 
for the past several years through U.S. Department of 
Agriculture (USDA) funding to promote the technical capacity 
of the organization.  However, recently, the agriculture 
ministry replaced the technically, competent district 
directors for SENASAG with inexperienced, Movement Towards 
Socialism (MAS) party supporters in each of Bolivia's nine 
departments.  More than fifty SENASAG workers were replaced 
in January, after their contracts expired.  Another forty 
percent of workers' contracts will expire in June, when the 
Inter-American Development Bank Foot and Mouth Disease 
Program loan expires.  SENASAG officials told Econoff on 
February 5 that the government is seeking an extension of 
this loan, but APHIS officials are concerned that SENASAG 
workers may be replaced by technically unqualified staff or 
dismissed for lack of funding.  These threats to the 
institutional structure of SENASAG could endanger the 
progress that APHIS has made in combating animal and plant 
illnesses, and, in fact, may have already done so. 
 
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Foot and Mouth Outbreak 
----------------------- 
 
¶3. (U) An outbreak of foot and mouth disease (FMD) was 
confirmed on January 26, and 26 cases were detected as of 
January 31 in Santa Cruz department, halting beef, dairy, and 
pork exports to Peru, Ecuador, Colombia, and Brazil.  Exports 
of these products totaled USD 10 million in 2006, according 
to the press.  The press reported on February 20 that exports 
would not be resumed for at least another six months, costing 
the cattle industry USD 8 million dollars.  Santa Cruz Cattle 
Federation Manager Raul Anez attributed the outbreak in part 
to the relaxation of sanitary controls due to the labor 
instability of SENASAG staff because of political 
interference in the organization.  APHIS staff told Econoff 
on February 8 that the outbreak was under control and had not 
affected the departments of Pando and Beni, where USDA funds 
have financed foot and mouth eradication efforts since 2001. 
In May 2005, Beni and Pando were certified as foot and mouth 
 
 
free zones.  Bolivia was poised to request nation-wide foot 
and mouth free certification in May 2007, which would have 
enabled it to expand exports to other countries, but the 
outbreak has delayed this process for at least two years. 
 
---------------------------------------- 
Venezuela Offers to Import Bolivian Beef 
---------------------------------------- 
 
¶4. (SBU) Neighboring Brazil sent veterinarians to Bolivia on 
February 8 to assist with outbreak containment and pledged to 
donate one million doses of FMD vaccine.  On February 9, the 
press reported that the Venezuelan government would import 
300 tons of Bolivian beef the week of February 12 to solve a 
beef shortage in Venezuela.  The press indicated that 
Venezuelan President Hugo Chavez ordered the importation of 
10,000 tons of Bolivian beef per year, beginning as soon as 
possible.  An official from the Bolivian embassy in Caracas 
reportedly said that Venezuela would also import 7,500 tons 
of beans, chicken, and soy, while Bolivia would import 
material for plastic production, electric parts, agricultural 
machinery, and rum from Venezuela, with the goal of doubling 
the amount of trade between the two nations under the 
Bolivarian Alternative for America (ALBA) trade agreement 
among the two countries, Cuba, Nicaragua, and Ecuador. 
However, on February 20, the press reported that, according 
to the Cattle Federation, Venezuela had put the brakes on the 
importation of Bolivian beef, presumably after realizing that 
an FMD outbreak had occurred.  President Morales was quoted 
in the press on February 24 promising to negotiate the export 
of beef to Venezuela to mitigate the damage to the sector 
caused by massive flooding, which has affected around 
one-third of the nation's cattle (reftel).  Beni Prefect 
Ernesto Suarez told the Charge on February 26 that he did not 
believe such sales would pan out, but were mere GOB 
propaganda. 
 
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Comment 
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¶5. (SBU) While other neighboring countries offered Bolivia 
technical support to contain the recent foot and mouth 
outbreak, Venezuela's offer to import beef seemed out of 
line, as it risked spreading the contagious disease.  Despite 
public promises by Venezuelan and Bolivian government 
officials to facilitate Bolivian beef exports, Venezuela 
appears to have had second thoughts.  This has been the 
pattern with much of the Venezuelan assistance announced for 
Bolivia -- the reality rarely lives up to the hype.  End 
comment. 
URS