AVIAN INFLUENZA: ISRAELI POULTRY FARMERS RECEIVE

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