POULTRY AMENDMENT DOUBTFUL TO ALLEVIATE SHORTAGE

UNCLAS ASHGABAT 001133 SIPDIS SENSITIVE SIPDIS STATE FOR SCA/CEN, EEB COMMERCE FOR HUEPER E.O. 12958: N/A TAGS: PGOV EAGR ECON TX SUBJECT: POULTRY AMENDMENT DOUBTFUL TO ALLEVIATE SHORTAGE REF: ASHGABAT 1056 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (U) On October 1, President Berdimuhamedov signed an amendment to agricultural legislation that makes poultry producers exempt from tax on profits for the next three years, starting from the date of registration of the investment project. The law is aimed at increasing domestic poultry production. However, the ban on importing poultry, initiated in 2006 in response to an outbreak of avian flu, remains in place. (NOTE: The ban is on live birds and eggs, but, in practice, the government also bans frozen poultry. END NOTE.) The ban continues to hamper domestic production since local producers cannot bring in eggs and chicks to refresh their stocks. ¶3. (SBU) Since the importation ban, there have been periodic shortages of chicken in Ashgabat and elsewhere. For the past month, eggs have also been in short supply. Rumors abound as to the cause, ranging from the government or criminal elements trying to corner the market or the fact that a certain Turkish-German chicken farm was closed. The Charge once had to bargain for a few eggs from a small vendor at a market after being told by someone with a truck full that there were no eggs for sale. Banning the importation of poultry and eggs is, no doubt, a major contributing factor to the problem. ¶4. (SBU) COMMENT: Whatever the reasons for the shortage, lifting the ban on importation of poultry will certainly make chicken more plentiful and lower the price (reftel). Now may be the time to ask that Turkmenistan allow the importation of poultry from countries that have not suffered outbreaks of avian influenza, like the United States. END COMMENT. HOAGLAND