Singapore To Begin Rejecting U.S. Beef Shipments

UNCLAS SECTION 01 OF 02 SINGAPORE 000928

SIPDIS

SENSITIVE
SIPDIS

USDA FAS FOR CMP/DLP, ITP/AAD
USDA FOR ACTING UNDER SECRETARY LAMBERT, APHIS/IS, FSIS

MANILA FOR APHIS
USTR FOR AUSTR BWEISEL AND EBRYAN

E.O. 12356: N/A
TAGS: EAGR ETRD ECON SENV TBIO SN

SUBJECT: Singapore To Begin Rejecting U.S. Beef Shipments

REF: A) Singapore 649 B) Hong Kong 1097


1. (U) This is an action request. Please see para 8.


2. (SBU) Singapore's Agri-Veterinary Authority (AVA)
informed the Embassy and USDA/FSIS on March 22 that it would
begin rejecting U.S. beef shipments that contain bone
fragments for what AVA regards as non-compliance with our
agreement for boneless beef exports. In a letter dated
March 22 to the Ag Counselor and FSIS, Dr. Astrid Yeo, AVA
Head of the Import-Export Division, said that inspectors had
detected cases of U.S. beef containing soft bone tissue in
all six consignments since Singapore reopened its market
January 17. Dr. Yeo noted that AVA had brought previous
lapses in beef export verification (BEV) compliance to
USDA's attention. These included a second shipment of
chilled beef with over 70 defects from a plant
(Establishment 960A) that had earlier sent shipments with
similar, but not as extensive, quality problems.


3. (SBU) AVA Deputy CEO Dr. Chew Siang-Thai told Ag
Counselor that AVA recognized that the bone fragments did
not represent a food safety problem. However, the most
senior officials -- including the CEO -- and their superiors
in the Ministry of National Development were "seriously
concerned" that the apparent inability of packers to ensure
Singapore received beef without bone fragments indicated of
a lack of attention to food safety and quality control. Ag
Counselor assured Dr. Chew that USDA Food Safety Inspection
Service inspectors had verified that all food safety-related
aspects of U.S. plant operations were compliant.


4. (SBU) Singapore announced on January 17 that it would
lift its two-year ban on imports of boneless U.S. beef
products from animals under 30 months of age. AVA has
inspected all shipments -- the first on February 23, and
five additional shipments on March 2, 15, 16, 20, and 21
(the latter two referenced in AVA's letter). AVA found some
soft bone defects -- although no specified risk materials
(SRMs) -- in all six initial shipments. AVA allowed the
shipments into the local market, but only after first
destroying all bone-in material. AVA is especially
concerned about shipments of frozen beef, which will be more
difficult to inspect.


5. (SBU) Singapore so far has worked closely and quietly
with us to manage these quality control issues. Ag
Counselor has assured AVA that, as in each identified case
of non-compliance, USDA and industry have notified the plant
of the quality defects and stressed the need to comply with
Singapore's strict requirements. The Ambassador plans to
update AVA Chairman KOH Poh Tiong on our ongoing efforts
during her meeting with him on March 24 (March 23,
Washington time).


6. (SBU) From USDA's and industry's point of view, the
presence of soft bone or even small pieces of bone is
generally considered at most a minor quality defect, one
that should be addressed, but not lead to rejection of a
shipment or decertification of a packer solely on this
basis. Ag Counselor is working with USDA to draft a formal
letter to AVA addressing this issue.

Comment and action request
--------------


7. (SBU) Our credibility as a quality exporter committed to
meeting the terms of the agreement for reopening the
Singapore market to U.S beef is on the line. Singapore does
not regard the defects as a routine, technical matter. So
far, from the Singapore perspective, we have had a 100-
percent failure rate to comply with our agreement (i.e.,
each of the first six shipments contained bone and the
"defects" are rising with each shipment). The issue of bone
fragments in boneless beef was never raised during the
negotiations when it might have been most easily resolved.
We are concerned that a letter from USDA to AVA arguing that

SINGAPORE 00000928 002 OF 002


a certain amount of soft bone tissue and bone is
"inevitable" in boneless cuts of beef will not allay AVA's
concerns -- in Singapore's mind, we committed to provide
beef with no bone product in it whatsoever. This will make
it difficult to negotiate some level of allowable defects.
We suggest that USDA redouble its efforts to impress upon
U.S. packers the need for extremely high quality controls
during the initial market-reopening phase. Once our
credibility is back on a solid footing, we will be in a
better position to convince Singapore not to decertify
plants and, eventually, also to allow imports of bone-in
cuts.


8. (U) Action requested: please provide updated talking
points for the Ambassador's use in her March 24 meeting with
the chairman of AVA. We will appreciate, in particular,
points to address to AVA concerning its decision to reject
future shipments containing bone fragments.

U.S. Beef Shipment Details
--------------


9. (SBU)

February 23 - Vacuum-packed chilled deboned beef from
Establishment 960A. Of 78 cartons inspected, 6 pieces were
found to contain soft bone/bone remnants.

March 2 - Air-flown frozen deboned beef from Establishment

19336. Of 37 cartons inspected, 6 pieces were found to
contain soft bone/bone remnants.

March 15 - Vacuum-packed chilled deboned beef from
Establishment 410. Of 146 cartons inspected, 32 pieces were
found to contain soft bone/bone remnants.

March 16 - Vacuum-packed chilled deboned beef from
Establishment 27. Of 105 cartons inspected, 63 pieces were
found to contain soft bone/bone remnants.

March 20 - Vacuum-packed chilled deboned beef from
Establishment 960A. Of 82 cartons inspected, 73 pieces were
found to contain soft bone/bone remnants.

March 21 - Vacuum-packed chilled deboned beef from
Establishment 235. Of 173 cartons inspected, 107 pieces
were found to contain soft bone/bone remnants.

HERBOLD