Indonesia Animal Product Update

UNCLAS JAKARTA 001658 SIPDIS SIPDIS USDA DU/S LAMBERT, DU/S TERPSTRA USDA/FAS/SRITCHIE, DSMITH FAS/OA YOST, MILLER FAS/OCRA/WOOLSEY, HIGGISTON, RADLER FAS/OSTA/SISSION, SSHNITZLER, CHAMILTON FAS/OFSO/DEVER DEPT PASS TO USDA/APHIS DEPT PASS USTR/RCROWDER, OCONNER, KATZ, BURST, ENRIGHT GENEVA FOR MIN COUNSELOR MILLER MANILA FOR APHIS/THOMAS KUALA LUMPUR FOR AG COUNSELOR GRESSEL HANOI FOR AG ATTACHE WADE BANGKOK FOR AG COUNSELOR MEYER, APHIS/CARDENAS CANBERRA FOR AG COUNSELOR WAINIO, APHIS MANAGUA FOR AG SPECIALIST SINGAPORE FOR AG SPECIALIST HONGKONG FOR AG TRADE OFFICER E.O. 12958: N/A TAGS: ETRD EAGR SUBJECT: Indonesia Animal Product Update Reftel (JAKARTA 001270) ¶1. Summary: Post met with Turni Rusli Syamsudin, the Director of Public Veterinary Health and members of his staff twice during the week of June 4, 2007 to discuss poultry, ruminant meat and bone meal, and beef. The Directorate General of Livestock Services (DGLS) is characterizing the poultry ban as a warning and plans to resume issuing import permits in 3 months. DGLS has completed its evaluation of its ruminant meat and bone meal (MBM) control system and determined it is insufficient and will continue restricting imports of U.S. MBM to one producer for an undetermined period. DGLS is inpatient to receive an invitation from USDA to visit the United States and inspect BSE-related controls. In a follow-up meeting, Indonesian beef importers explained their desire to resume trade in time to have beef in retail stores for the holiday season beginning in the middle of September. End Summary. Poultry -------------- ¶2. Based on Article 11 in Decree 27, DGLS is no longer issuing import permits for U.S. turkey, day old chicks, whole poultry carcass, and duck originating from any U.S. state as well as poultry meal originating from the state of West Virginia. Article 11 states that Indonesia will not import from a country with notifiable avian influenza. ¶3. DGLS is labeling this as a "warning" rather than a ban. It hopes that this will make it easier to resume trade 3 months after the final report by the United States to the OIE. If it were a ban, then the ban would need to be lifted by Ministerial decree. ¶4. An APHIS letter to the Director of DGLS was sent Wednesday, June 13 requesting that the trade restrictions be limited to those products recommended by the OIE Animal Health Terrestrial Code. Ruminant Meat and Bone Meal -------------- ¶5. DGLS says that imports of U.S. MBM will continue to be limited to one producer. DGLS has completed its review of the control system to ensure that ruminant materials are not fed to ruminants. The report has determined that the control system is not effective. DGLS mentioned the findings of ruminant material in poultry and feather meal by Quarantine in Surabaya as an example of the lack of controls. (See Reftel) DGLS will continue the limited trade to give time for the control system to be improved. When asked, DGLS had no suggestions on areas of cooperation with the USDA to improve its control system. Beef -------------- ¶6. FAS/Jakarta met with DGLS on Tuesday followed by a meeting that also included the U.S. Meat Export Federation (USMEF) on Thursday during the week of June 4. During both meetings, DGLS expressed frustration because they did not understand why USDA had not sent an invitation for them to visit the United States. They would like to discuss BSE safeguards with USDA officials and to see the system, including laboratories. ¶7. USMEF explained that this was not possible if DGLS placed restrictions beyond U.S. requirements. They were disappointed to hear that placing restrictions requiring a beef export verification program and negotiated FSIS certificate would increase the time it would take before trade could resume and that these steps could not be taken until after GOI decided what products it would accept. ¶8. Indonesia is focused on allowing imports of boneless beef, heart, liver, tongue, and oxtail. After the discussion with USMEF, DGLS is considering opening to all beef products. DGLS committed to addressing the subject with the Director of DGLS and the Minister after receiving the invitation. DGLS requested information on the amount of U.S. beef consumption, production, and export to support the discussion. FAS/Jakarta has provided the information. ¶9. Indonesia plans to inspect and approve every plant for halal, but not certify. A representative from the halal certifying body in the United States will likely need to accompany DGLS on the tours. ¶10. DGLS will require that each plant wanting to export to Indonesia complete an application that will be reviewed before the trip. They will use importer preference if the number of plants exceeds the number they can visit in this trip. Then DGLS was expecting to send the list of approved plants to USDA. ¶11. Comment: The first sign of possible momentum came during the meeting with USMEF. DGLS is concerned about resuming imports in time for the holiday season. They were expecting that trade could resume after they returned from their trip, using the previous certificate. DGLS expressed that they do not understand the delay on USDA's behalf. They assumed that because they had not received a response to their April 4 letter stating their plans, USDA had no concerns. In their view, USDA is expressing concerns only now that GOI is ready to visit, resulting in their frustration. ¶12. Indonesian beef importers also expressed frustration because trade has not resumed in a meeting later that day with USMEF. It is clear that the GOI will receive pressure from importers to resume trade in all products if that will result in U.S. beef arriving in time for the holiday season. If not, importers are considering pressuring DGLS to resume trade on a plant-by-plant basis rather than working with USDA because they also perceive USDA as unresponsive. What is unclear is if DGLS would permit such an arrangement because they emphasize formal government-to-government meetings and the need for a formal invitation from the government. HEFFERN