CYPRUS: FOOT AND MOUTH DISEASE OUTBREAK SUSPECTED

UNCLAS SECTION 01 OF 02 NICOSIA 000889 SIPDIS SENSITIVE AGRICULTURE FOR FAS BRUSSELS FOR FAS ATHENS FOR FAS SIPDIS E.O. 12958: N/A TAGS: EAGR ECON ETRD TBIO CY SUBJECT: CYPRUS: FOOT AND MOUTH DISEASE OUTBREAK SUSPECTED REF: NICOSIA 844 (U) This cable is sensitive but unclassified. Please protect accordingly. ¶1. (SBU) Summary. Barely days after widespread fears over an outbreak of scrapie proved unfounded, Cypriot animal husbandry is now facing the specter of foot and mouth disease. The European Commission was expected to meet on November 6 to decide on further measures, after ordering a ban on Cypriot exports of meat and dairy products the day before. If confirmed, the outbreak threatens Cyprus' entire domestic livestock sector, and the related meat processing and dairy industries, with collapse. The GOC is doing everything it can (although not yet on the bicommunal front) to contain the disease. This being a pre-election period, there may well be political implications. End Summary. ¶2. (U) "Out of the frying pan and into the fire" -- this would best describe the current predicament of Cypriot animal husbandry. A fortnight ago, the future of Cypriot animal husbandry hang in the balance over widespread scrapie fears (Reftel). These fears subsided after the European Commission approved a grace period of five years for the mass culling of affected animals in Cyprus. However, another, related threat -- foot and mouth disease -- now threatens the same industry. ¶3. (U) Over the past few days, the GOC Veterinary Services have culled 332 farm animals in the Larnaca district suspected of suffering from foot and mouth disease. Another 2,000 animals in several different farms are expected to be culled on November 6. If confirmed, the outbreak puts around 160,000 animals at risk, including sheep, goats, cattle, and swine, threatening the entire domestic livestock sector with collapse. ¶4. (U) It is not yet absolutely certain that the culled animals had been afflicted by foot and mouth disease but there are strong indications that this is so. Preliminary tests have confirmed the presence of Type 0 (the most prevalent type of the seven types) of this disease. ¶5. (U) Alarmed by the developments, the European Commission banned the export of meat and dairy products from Cyprus on November 5. The Commission was expected to meet on November 6 to decide on further measures, pending official confirmation of the disease. It has been reported in the press that EU Health Commissioner Markos Kyprianou would try to obtain an exemption for exports of Cypriot halloumi cheese, since this is a product obtained after long processing and pasteurization of the milk. Exports of halloumi, Cyprus' most famous patented product, have been thriving in recent years, reaching CP 17 million (USD 41.4 million) in 2006, and making up 6.5 percent of Cyprus' total exports. ¶6. (U) The Veterinary Services have been on red alert since the first suspicious incidents, placing suspect farms in the Larnaca area under quarantine, with a 10 km safety perimeter around them. The movement of animals from farm to farm has been prohibited and milk coming from suspect farms is being destroyed. As of 5:40 PM on November 5, the main slaughterhouse in Kofinou also stopped receiving animals of all kinds (sheep, goats, cattle, and pigs) for slaughtering. ¶7. (U) These developments already spell out the risk of fresh meat shortages in the market, with knock-on effects on local meat-processing plants. Dairy producers are already feeling the pinch. A leading dairy producer told us that he feared the worst, although maintaining some hope. The ultimate impact on the Cypriot economy is impossible to pin down at this point, although it is likely to be significant, even though a large portion of the damage should be covered by EU funds. ¶8. (SBU) Animal husbandry in the north of the island is equally at risk, if the presence of the disease is confirmed officially. This would certainly increase pressure on the GOC to step up cooperation with UN authorities to contain the disease. So far, cooperation between Greek Cypriot and Turkish Cypriot health services has been rather limited, due to political sensitivities. The main impediment, namely, has been the GOC's reluctance to cooperate directly with Turkish Cypriot counterparts for fear that they would afford them recognition. The bicommunal Emergency Disease Forum (EDF),established in 2006 under the United Nations Development Program (UNDP) Action for Cooperation and Trust (ACT),has had only limited success to date. EDF officials are using this latest NICOSIA 00000889 002 OF 002 incident as an opportunity for closer cooperation between the communities but have lamented GoC cancellation of a regularly-scheduled October 30 EDF meeting which could have been used to discuss the Foot and Mouth problem. (UNDP, EDF Memo forwarded to State Cyprus desk). ¶9. (U) As is usually the case in Cyprus, some interesting gossip has surfaced as to the origin of the disease, even as the potential catastrophe unfolds. Two "conspiracy theories" have seen the light of day in local newspapers: according to the first one, the disease is the result of cheap, ineffective animal vaccines procured illegally by certain farmers from north Cyprus. Agriculture Minister Photiou said this information was being investigated. The second theory suggests that large commercial interests wanted to kick the farmers out in order to develop the areas near their farms for tourism and construction. ¶10. (SBU) Comment. This turn of events does not help incumbent President Papadopoulos, who is seeking re-election in February 2008. Pending official confirmation, the fallout from a foot and mouth disease outbreak on the economic front, is likely to be considerable. What remains to be seen is the exact extent of the damage and whether any resulting financial assistance from Brussels is enough to offset the political fallout. Regrettable as it may be, this potential outbreak may also provide the necessary catalyst for closer cooperation between the two communities on handling emergency diseases. End Comment. SCHLICHER