VZCZCXRO7359
RR RUEHLMC
DE RUEHSN #0647/01 1892146
ZNR UUUUU ZZH
R 082146Z JUL 09
FM AMEMBASSY SAN SALVADOR
TO RUEHC/SECSTATE WASHDC 1364
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/USDOC WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC

UNCLAS SECTION 01 OF 02 SAN SALVADOR 000647 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR EAID PGOV SOCI EFIN ES
SUBJECT: NEW MINISTER OF AGRICULTURE OUTLINES VISION FOR 
AGRICULTURAL ASSISTANCE, ANTI-CRISIS EFFORTS 
 
¶1. (U) SUMMARY.  New Minister of Agriculture Manuel Sevilla 
discussed his Ministry's role in the Government of El Salvador's 
(GOES) "anti-crisis" plan and his views on agricultural assistance 
during a June 25 courtesy call.  The Ministry of Agriculture's 
anti-crisis program will focus on a combination of short-term 
projects, like more efficient seed and fertilizer distribution, and 
long-term goals, including coffee plantation restoration.  Sevilla 
viewed diversification to higher income crops as essential to 
reducing rural poverty and expressed a strong interest in trade 
capacity building programs.  A technocrat, Sevilla indicated that he 
understood the importance of markets, value chains, and technology 
to agricultural growth.  Sevilla, his team, and the Vice Foreign 
Minister for External Cooperation all appeared eager to continue 
agricultural cooperation with the USG.  END SUMMARY. 
 
¶2. (U) On June 25, Guatemala-based Ag Counselor, A/Econcouns, and Ag 
Specialist called on new Minister of Agriculture and Livestock 
Manuel Sevilla.  New Vice Minister Hugo Flores and soon-to-be-named 
Director for Policy Armando Maldonado also participated.  Ag 
Specialist spoke separately with Vice Foreign Minister for External 
Cooperation Jamie Miranda on June 30. 
 
ANTI-CRISIS PLAN 
---------------- 
 
¶3. (U) Asked about the Ministry of Agriculture's (MAG) role in the 
GOES's recently announced "Anti-Crisis Plan," Sevilla said he wanted 
to make sure MAG's efforts addressed both the short term and the 
long term.  Planned activities include: 
 
- More efficient, larger scale, and better targeted distribution of 
seeds and fertilizers.  Sevilla remarked that the existing 
distribution program had been heavily politicized, rendering it less 
effective.  MAG would also import fertilizer directly from abroad to 
lower costs and avoid the handful of companies that controlled the 
El Salvador market. 
 
- More efficient use of public and donor funds to improve the 
execution rate of agricultural development projects. 
 
- Restoration of coffee plantations through the replanting of 30 
million trees.  MAG would share the costs with the private sector. 
 
- Expansion of agricultural financing through the state-owned Banco 
de Fomento Agropecuario.  Sevilla said that $20 million was 
available during the first 100 days of the new government. 
 
- Increased technical assistance to small growers. 
 
- Implementation of crop insurance. 
 
- Reduced foreclosures on delinquent agricultural loans. 
 
SPS ISSUES 
---------- 
 
¶4. (U) Ag Counselor raised the case of a US company that was having 
its imports of pre-cooked pork patties blocked by product standards 
that were not scientifically based.  Sevilla responded that new 
personnel would be joining the office responsible for sanitary and 
phytosanitary (SPS) standards in early July, which should address 
the situation.  This office, Sevilla stated, was where he had found 
corruption at MAG.  The previous office staff had developed a 
too-close relationship with parts of the private sector, and it had 
been using its powers to help preserve certain oligopolies.  In his 
view, it was far-fetched for a developing country such as El 
Salvador to call into question the food safety standards for 
products being imported from countries such as the U.S. and New 
Zealand. 
 
AGRICULTURAL COOPERATION 
------------------------ 
 
¶5. (U) Ag Counselor and Ag Specialist briefly outlined existing USDA 
technical assistance programs, emphasizing their benefits to 
growers, small and medium enterprises, and exporters, including 
programs to take advantage of CAFTA-DR.  Ag Counselor encouraged 
Sevilla to visit Washington and explain MAG's agricultural 
development strategy to Secretary Vilsack. 
 
¶6. (U) Sevilla expressed a strong interest in trade capacity 
building and technology.  In Sevilla's view, production of 
traditional crops like corn and beans was not the solution to rural 
poverty, and diversification to higher income crops was critical. 
To be most effective, Sevilla stressed, MAG would also have to 
coordinate closely with other Ministries.  When asked about other 
assistance in agriculture, Sevilla said that the GOES was in final 
discussions with the Government of Brazil about opening an office of 
 
SAN SALVAD 00000647  002 OF 002 
 
 
the Agricultural and Livestock Research Service (EMBRAPA) in El 
Salvador. 
 
¶7. (U) On June 30, Vice Foreign Minister for External Cooperation 
Jaime Miranda also contacted Ag Specialist to discuss food 
assistance (NOTE. Food For Progress (FFP) programs are run in 
conjunction with the Ministry of Foreign Affairs (MFA).  END NOTE) 
Miranda said the GOES was grateful El Salvador was back on the 
priority list for FY2010 FFP, and the MFA was preparing a proposal. 
Miranda, who participated in the May 31 Pathways to Prosperity 
Ministerial, said that their proposal would be based on the contents 
of the Pathways declaration.  Miranda also assured Ag Specialist 
that all USDA funds would be administered under established 
procedures to provide transparency and comply with each project's 
stated goals. 
 
¶8. (U) COMMENT: Sevilla appeared very much the technocrat that his 
biography suggested.  His comments indicated that he understood the 
importance of markets, value chains, and the use of technology in 
promoting agricultural growth.  Sevilla, his team, and VFM Miranda 
all seemed eager to continue cooperation with the USG on 
agricultural development. 
 
¶9. (U) BIO NOTE: Sevilla has a PhD in Public Finance and a Master's 
Degree in Economics from Syracuse University.  He also has a degree 
in Economics from Bates College (Lewiston, Maine).  He has worked as 
chief of the UNDP's Democratic Governability Program and as the 
World Bank's Finance, Infrastructure and Private Sector Chief for 
Central America.  His son currently attends the University of 
Rochester. 
 
Blau