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