Identifier
Created
Classification
Origin
08ASHGABAT26
2008-01-07 12:01:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: U.S. CHICKEN ALLOWED IN - FOR THE HOLIDAYS
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UNCLAS SECTION 01 OF 02 ASHGABAT 000026
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
ANKARA FOR AGRICULTURAL COUNSELLOR
E.O. 12958: N/A
TAGS: PGOV EAGR ECON ETRD TX
SUBJECT: TURKMENISTAN: U.S. CHICKEN ALLOWED IN - FOR THE HOLIDAYS
REF: 07 STATE 169243
UNCLAS SECTION 01 OF 02 ASHGABAT 000026
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
ANKARA FOR AGRICULTURAL COUNSELLOR
E.O. 12958: N/A
TAGS: PGOV EAGR ECON ETRD TX
SUBJECT: TURKMENISTAN: U.S. CHICKEN ALLOWED IN - FOR THE HOLIDAYS
REF: 07 STATE 169243
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: U.S.-origin chicken leg-thigh quarters, which in
the early 1990s acquired the moniker of "Bush Legs" throughout the
former Soviet Union, made an appearance at Ashgabat's markets over
the New Year's weekend. According to a contact at the Ministry of
Trade, a U.S. company, UNOVA, has received a contract to export
4,500 tons of U.S. chicken for New Year, and 1800 tons for Flag Day
(in February). The Ministry of Trade bought the chicken for $2 per
kilo, and then resold it legs at the market for 37,000 manat per
kilo -- approximately $6 at the official exchange rate -- a very
hefty mark-up. This allowed the government to address a notable
shortage during a very important time of the year -- and to profit
in the mix. We will continue to advocate for importation of U.S.
poultry products (ref). END SUMMARY.
3. (U) Following months of declining availability of chicken in
Turkmenistan's markets, chicken leg-thigh quarters imported from the
United States -- the so-called "Bush Legs" -- appeared suddenly on
New Year's Eve. State shops in Ashgabat started selling these
chicken legs at 37,000 manat per kilo (about $6 at the official
exchange rate). Customers were allowed to buy up to 5 kilos at a
time. According to a Ministry of Trade official, the Ministry
signed two contracts with a U.S. company, UNOVA, to supply 4,500
tons of chicken legs for the New Year celebrations and 1,800 tons of
chicken legs for the Flag Day celebrations. The Ministry of Trade
purchased the chicken legs for $2 per kilo.
4. (SBU) On January 4, Pol/Econ Assistant checked the local food
markets and state shops for chicken legs. In Ashgabat, state shops
were continuing to offer the chicken legs at 37,000 manat per kilo.
Pol/Econ Assistant confirmed that the chicken legs were supplied in
large amounts for provincial residents at the same price. In one of
the state shops, packing labels stated that Pilgrim's Pride of
Canton, Georgia, and Country Pride of Pittsburg, Texas, were
distributors of the chicken legs. Pol/Econ Assistant noticed that
the chicken legs were not all of the same quality: some were big and
attractive, others were small and bony.
5. (SBU) A senior veterinary service official told Pol/Econ
Assistant that the Ministry of Health lifted the unofficial poultry
import ban for the Ministry of Trade specifically for the
above-mentioned contracts. However, the Ministry of Health has not
lifted the ban for private companies to import poultry products.
This effectively makes the Ministry of Trade the sole importer of
chicken legs and eggs and allows the Ministry to profit from a hefty
mark-up. (By comparison, local chicken from the Altyn Hilal private
farm is available at 160,000 manat, but only under the counter. The
Ministry of Trade allows only the Altyn Hilal farm to sell its
chickens to local restaurants.)
IMPORTED EGGS ALSO MAKE AN APPEARANCE
6. (SBU) In an effort to resolve an egg shortage and the subsequent
price peak, which hit 3,500 manat (approximately $.50 at the
official exchange rate) per egg in December, the Ministry of Trade
also imported eggs from India. Local food markets controlled by the
Ministry are selling the imported eggs at 1,700 manat (about $.25)
per egg, and each person is allowed to buy only ten eggs at a time.
7. (SBU) COMMENT: As post has reported previously, the ban on
importation of chicken and poultry products, such as eggs -- put
into effect in 2006 as a preventive measure against avian influenza
-- has created major shortages of both chickens and eggs, two
popular items in the local diet. When these products are available,
it is only at prices substantially higher than a year ago. The
government probably wanted to ensure that both these products were
available for the Gurban Bayram (which in 2007 was celebrated a few
days before Christmas) and New Year's holidays, two of the most
important holidays of the year. We will continue to advocate for
allowing the importation of U.S. poultry products. END COMMENT.
ASHGABAT 00000026 002 OF 002
HOAGLAND
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
ANKARA FOR AGRICULTURAL COUNSELLOR
E.O. 12958: N/A
TAGS: PGOV EAGR ECON ETRD TX
SUBJECT: TURKMENISTAN: U.S. CHICKEN ALLOWED IN - FOR THE HOLIDAYS
REF: 07 STATE 169243
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: U.S.-origin chicken leg-thigh quarters, which in
the early 1990s acquired the moniker of "Bush Legs" throughout the
former Soviet Union, made an appearance at Ashgabat's markets over
the New Year's weekend. According to a contact at the Ministry of
Trade, a U.S. company, UNOVA, has received a contract to export
4,500 tons of U.S. chicken for New Year, and 1800 tons for Flag Day
(in February). The Ministry of Trade bought the chicken for $2 per
kilo, and then resold it legs at the market for 37,000 manat per
kilo -- approximately $6 at the official exchange rate -- a very
hefty mark-up. This allowed the government to address a notable
shortage during a very important time of the year -- and to profit
in the mix. We will continue to advocate for importation of U.S.
poultry products (ref). END SUMMARY.
3. (U) Following months of declining availability of chicken in
Turkmenistan's markets, chicken leg-thigh quarters imported from the
United States -- the so-called "Bush Legs" -- appeared suddenly on
New Year's Eve. State shops in Ashgabat started selling these
chicken legs at 37,000 manat per kilo (about $6 at the official
exchange rate). Customers were allowed to buy up to 5 kilos at a
time. According to a Ministry of Trade official, the Ministry
signed two contracts with a U.S. company, UNOVA, to supply 4,500
tons of chicken legs for the New Year celebrations and 1,800 tons of
chicken legs for the Flag Day celebrations. The Ministry of Trade
purchased the chicken legs for $2 per kilo.
4. (SBU) On January 4, Pol/Econ Assistant checked the local food
markets and state shops for chicken legs. In Ashgabat, state shops
were continuing to offer the chicken legs at 37,000 manat per kilo.
Pol/Econ Assistant confirmed that the chicken legs were supplied in
large amounts for provincial residents at the same price. In one of
the state shops, packing labels stated that Pilgrim's Pride of
Canton, Georgia, and Country Pride of Pittsburg, Texas, were
distributors of the chicken legs. Pol/Econ Assistant noticed that
the chicken legs were not all of the same quality: some were big and
attractive, others were small and bony.
5. (SBU) A senior veterinary service official told Pol/Econ
Assistant that the Ministry of Health lifted the unofficial poultry
import ban for the Ministry of Trade specifically for the
above-mentioned contracts. However, the Ministry of Health has not
lifted the ban for private companies to import poultry products.
This effectively makes the Ministry of Trade the sole importer of
chicken legs and eggs and allows the Ministry to profit from a hefty
mark-up. (By comparison, local chicken from the Altyn Hilal private
farm is available at 160,000 manat, but only under the counter. The
Ministry of Trade allows only the Altyn Hilal farm to sell its
chickens to local restaurants.)
IMPORTED EGGS ALSO MAKE AN APPEARANCE
6. (SBU) In an effort to resolve an egg shortage and the subsequent
price peak, which hit 3,500 manat (approximately $.50 at the
official exchange rate) per egg in December, the Ministry of Trade
also imported eggs from India. Local food markets controlled by the
Ministry are selling the imported eggs at 1,700 manat (about $.25)
per egg, and each person is allowed to buy only ten eggs at a time.
7. (SBU) COMMENT: As post has reported previously, the ban on
importation of chicken and poultry products, such as eggs -- put
into effect in 2006 as a preventive measure against avian influenza
-- has created major shortages of both chickens and eggs, two
popular items in the local diet. When these products are available,
it is only at prices substantially higher than a year ago. The
government probably wanted to ensure that both these products were
available for the Gurban Bayram (which in 2007 was celebrated a few
days before Christmas) and New Year's holidays, two of the most
important holidays of the year. We will continue to advocate for
allowing the importation of U.S. poultry products. END COMMENT.
ASHGABAT 00000026 002 OF 002
HOAGLAND