EGYPT STEPS FORWARD ON U.S. BONE-IN BEEF

UNCLAS CAIRO 000100

SENSITIVE
SIPDIS

USDA FOR OSTA/AD, OCRA/MEA, OFSO
DEPT PASS USTR FOR AGRICULTURE/LOCONNOR

E.O. 12958: N/A
TAGS: EAGR ECON ETRD EG
SUBJECT: EGYPT STEPS FORWARD ON U.S. BONE-IN BEEF


1. (SBU) SUMMARY Egypt has offered to expand access for U.S. beef
products by adding bone-in beef from animals less than 30 months of
age to the eligible product list. Currently, Egypt only permits
imports of U.S. boneless beef and variety meats from animals less
than 30 months of age. While this expands U.S. beef market access,
it does not meet OIE (World Animal Health Organization) guidelines
which permit the import from controlled risk countries of all cuts
of meat from cattle of all ages with removal of specified risk
materials (SRMs). Egypt's Chief Veterinary Officer (CVO) has
indicated a need to confirm U.S. practices on removal of specified
risk materials from cattle over 30 months of age in line with OIE
guidelines. For the U.S. part, we will need to confirm that Egypt
is prepared to recognize Food Safety Inspection Service (FSIS)
regulations relative to SRM-removal practices. As part of a
previously-scheduled trip to the United States to attend the Atlanta
Poultry Exposition, the Egyptian CVO has agreed to meet with USDA
officials in Washington on February 2 to discuss a pathway to full
implementation of OIE guidelines, which would allow importation of
all beef and beef products with no age restriction. FAS Egypt seeks
Washington agency guidance on how to proceed on this visit. END
SUMMARY


2. (SBU) On November 15, Egypt's Chief Veterinary Officer informed
FAS/Cairo by fax that the General Organization for Veterinary
Services (GOVS) had approved the importation of bone-in beef from
the United States from cattle under 30 months of age, recognizing
our controlled risk status for BSE (Bovine Spongiform
Encephalopathy).


3. (SBU) In discussions over the past two months, the CVO has stated
a willingness to remove the age restriction in the coming months
based on an improved understanding of the handling of SRMs in U.S.
meat packing plants under USDA Food Safety Inspection Service
oversight. Senior GOVS officials have had the opportunity to review
information provided by FAS/W on SRMs based on the age of cattle.
They appear satisfied that FSIS requirements are in line with OIE
guidelines, but believe that they need to confirm that in-plant
procedures are effective in the removal of SRMs, especially from
cattle OTM.(NOTE: Currently Egypt requires the removal of a more
extensive list of SRMs from UTM cattle than those required under OIE
guidelines. This would have to change in order for Egypt to be
consistent with the OIE guidelines. To be consistent with the Korea
agreement on beef, as noted by FAS Washington, Egypt also would have
to recognize FSIS regulations relative to SRM-removal. END NOTE)


4. (SBU) Egypt's willingness to consider expanded beef access is in
response to FAS Cairo's letter of October 19 requesting access for
all cuts from all ages of cattle, in addition to FAS/Cairo
spearheading the issue over the past year with the CVO and his
senior staff. The final push to expand beef access likely came from
Minister of Agriculture and Land Reclamation Amin Abaza himself,
following his visit to the United States during October 8-16, 2009.
Bone-in beef shipments to Egypt could generate an additional $5
million in annual exports. U.S. boneless beef exports should exceed
$22 million in 2009, a five-fold increase over 2008, as U.S. beef is
increasingly competitive with other sources. Adding bone-in beef to
our lineup, will spur significant additional sales according to
importers.


5. (SBU) One issue that has arisen in discussions of import
requirements for bone-in beef is that GOVS envisions requiring an
Egyptian veterinary committee to observe the slaughter for each
shipment, at the importer's expense. GOVS does not require this of
U.S. boneless beef and variety meat shipments, but does require it
for all other countries shipping meat and poultry to Egypt. The
original requirement arose because of problems with beef/buffalo
meat shipments from India and Brazil in 2002. U.S. beef was not
subject to this requirement because of our strong meat food safety
system. FAS/Cairo has informed GOVS that USDA would not agree to
shipment by shipment inspection, but could support, as part of a
validation audit, a visit to one or more U.S. plants to confirm the
handling of SRMs.


6. (SBU) The Government of Egypt is also very sensitive to food
safety issues, where they have come under fire from legislators and
the press, including recent concerns over the food safety of
imported wheat. Minister Abaza wants to make sure his technical
staff is confident of U.S. practices on SRMs before moving forward
to allowing beef imports fully consistent with the OIE guidelines.


7. (SBU) FAS Cairo plans to meet with the CVO and his senior staff
before his travel to the United States to further explore these beef
market access-related issues. In preparation for this meeting,
FAS/W guidance on laying-out a possible roadmap to full beef access
would be greatly appreciated in order to establish expectations for
his trip both in Cairo and in Washington.
SCOBEY