VZCZCXRO4545
PP RUEHLMC
DE RUEHMU #0806 2291706
ZNR UUUUU ZZH
P 171706Z AUG 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 4450
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUMIAAA/CDR USSOUTHCOM MIAMI FL
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS MANAGUA 000806 
 
SIPDIS 
SENSITIVE 
 
USDA/FAS/OFSO - HMAGINNIS 
USDA/FAS/OCBD/FA - JPHILLIPS, EBELTRAN, DPFAFF 
USDA/FAS/OCDB/TSCB - CEVANS 
USDA/FAS/OCRA - YWEDDERBURN 
AMEMBASSY GUATEMALA FOR BHOFF AND DORELLANA 
 
E.O. 12958: N/A 
TAGS: EAGR NU CS
SUBJECT: NICARAGUA FY2010 FOOD FOR PROGRESS PROGRAM REQUEST 
 
¶1. (SBU) Summary: The Government of Nicaragua (GON) has requested a 
$4.8 million FY2010 government-to-government U.S. Department of 
Agriculture (USDA) Food for Progress (FFP) program to continue work 
with the Ministry of Agriculture and Forestry (MAGFOR) to improve 
Nicaragua's sanitary and phytosanitary (SPS) standards to take 
advantage of the Central America - United States - Dominican 
Republic Free Trade Agreement (CAFTA-DR) and other free trade 
agreements.  The program with MAGFOR would support agricultural 
development, improve food safety, and promote international trade. 
The commodities requested for monetization are 4,260 MT of vegetable 
oil and 1,820 MT of tallow.  Post believes this program supports our 
efforts to foster private sector led growth and assist Nicaraguan 
farmers in their efforts to take advantage of CAFTA-DR.  It would 
also demonstrate our interest in continuing to cooperate with the 
GON on areas of common interest.  End summary. 
 
¶2. (SBU) On July 31, 2009, through the Foreign Agricultural Service 
(FAS) website, the GON formally submitted a proposal for a FY2010 
government-to-government USDA FFP program.  The Ministry of 
Agriculture and Forestry requested a three-year program to 
strengthen the government's technical capacity in on SPS issues and 
to assist exporters in their efforts to meet SPS standards in 
international markets.  It would support agricultural development, 
improve food safety, and promote international trade.  The program 
would address areas such as the development of a national plant 
health surveillance program; good agricultural practices/traceback; 
maintenance of a fruit fly free area; hog cholera prevention 
program; prevention, control, and eradication of avian diseases; and 
certifications of ranches free of tuberculosis and brucellosis. 
 
¶3. (SBU) Commodities will be monetized through the Nicaraguan 
Importation Company (ENIMPORT), a dependency of the Ministry of 
Finance, which has successfully monetized FY2003, FY2004, and FY2005 
government-to-government FFP programs.  The program request is for 
4,260 MT of vegetable oil and 1,820 MT of tallow, with a current 
estimated value of $4.8 million.  The GON would provide $1.2 million 
as a counterpart contribution for an estimated program total of $6.0 
million.  Post supports the request for vegetable oil and tallow as 
the preferred commodities.  According to the Nicaraguan Customs 
Administration, 2008 imports of vegetable oil exceeded 62,000 MT, 
while tallow imports were more than 18,000 MT. 
 
¶4. (SBU) Post supports this FPP proposal and believes it complements 
ongoing FFP programs and other private and public agricultural 
sector programs.  We believe this program supports our efforts to 
foster private sector-led growth and assist Nicaraguan farmers in 
their efforts to take advantage of CAFTA-DR.  It would also 
demonstrate our interest in continuing to cooperate with the GON on 
areas of common interest. 
 
CALLAHAN