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Viewing cable 08ADDISABABA1870, Japan Embargoes Ethiopian Coffee for Trace Insecticides

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Reference ID Created Released Classification Origin
08ADDISABABA1870 2008-07-09 04:46 2011-08-25 00:00 UNCLASSIFIED Embassy Addis Ababa
VZCZCXRO2421
RR RUEHROV
DE RUEHDS #1870 1910446
ZNR UUUUU ZZH
R 090446Z JUL 08
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC 1237
INFO RUCNIAD/IGAD COLLECTIVE
RUEHEG/AMEMBASSY CAIRO 0724
RUEHKO/AMEMBASSY TOKYO 0515
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
UNCLAS ADDIS ABABA 001870 
 
SIPDIS 
DEPT FOR AF/E AND EEB 
CAIRO PLEASE PASS TO LINDA LOGAN, USDA/APHIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EINV EAGR ET
SUBJECT: Japan Embargoes Ethiopian Coffee for Trace Insecticides 
 
1. SUMMARY: The Japanese Coffee Association (JCA) has rejected the 
delivery of 16 container loads of Ethiopian coffee due to the 
presence of three banned insecticides. The JCA sent multiple teams 
to Ethiopia to obtain samples from throughout the supply chain to 
determine the source of the contamination.  At this time, it is 
thought that the chemicals come from jute bags used in the 
harvesting and shipping process. Testing is ongoing in Japan.  The 
implications for continued exports of Ethiopia's number one revenue 
source are significant, as Japan purchased approximately 17% of the 
country's last crop.  END SUMMARY 
 
2. According to Economic Officer Kazuyuki Takenaka from the Embassy 
of Japan in Addis Ababa, in late April the Japanese Coffee 
Association performed tests on Ethiopian coffee held in bonded 
warehouses prior to importation into Japan.  The tests found residue 
of three globally banned chemicals- Gamma BHC (also known as 
lindane), heptachlor, and chlordane.  The levels of the three 
chemicals were measured at over 100 times the acceptable limit, and 
the coffee will not be imported into Japan.  Takenaka stated that 
Japan has some of the most stringent food safety standards in the 
world, but pointed to a reading on one sample with a .232 parts per 
million result for one of the banned pesticides (.002 parts per 
million are allowed) as indicating that the coffee had what would be 
considered a high insecticide level in other countries as well. 
Since the initial finding, additional coffee has tested positive, 
but Takenaka does not know the exact amount or value. Takenaka 
stated that Japanese importers are no longer purchasing Ethiopian 
coffee, and that the coffee already shipped may be returned for a 
refund as it does not meet standards. 
 
3. Advisors to USAID's project to improve coffee production told 
Emboffs that, in their experience, chemical pesticides are not used 
in small-holder Ethiopian coffee because of cost constraints. 
Additionally, coffee is generally not irrigated, mitigating the 
possibility that the beans were contaminated by runoff from other 
agricultural enterprises.  Plantation coffee is very uncommon in 
Ethiopia, and would be the only part of the supply chain where 
chemicals might be used as part of agricultural production.  The 
coffee in question, they stated, is not likely to be plantation 
coffee because it comes from several areas (Yirgacheffe, Sidamo, 
Harar and Jimma according to Takenaka) and plantation coffee would 
be easily traceable to the producer, unlike the coffee being held in 
Japan. 
 
4. The JCA sent five teams to Ethiopia to examine the supply chain 
from beginning to end to take samples and determine where the 
contaminants were introduced.  Another team visited the Port of 
Djibouti to see if contaminated shipping containers could be the 
culprit.  While testing is not complete, the prime suspect at this 
point is bags made of jute fiber that are used in harvesting and 
shipping.  The jute fibers are imported from Bangladesh and/or made 
into bags in Ethiopia.  According to Takenaka, the samples are 
currently undergoing testing in Tokyo with results expected in three 
to four weeks.  USAID Fintrac contractors informed Emboffs that jute 
bags are used in all ten African coffee exporting countries, and 
there are potentially widespread implications regionally if the bags 
are to blame. 
 
5. The Government of Ethiopia (GoE) is concerned, with good reason, 
over this development.  According to both Takenaka and the USAID 
advisors, they are seeking the capacity to perform future testing 
in-country before coffee is exported.  Takenaka told Emboff that the 
GoE has equipment that may be capable of doing the testing, but they 
do not have the training to operate the machinery.  The Ethiopians 
asked the Japanese for capacity-building training, but as the 
machines are Chinese this is not a need that Japan can fulfill. 
 
6. COMMENT: Coffee is Ethiopia's number one export and a huge number 
of peasant farmers rely on it for their livelihood.  A significant 
decrease in the amount of coffee purchased by Japan (Ethiopia's 
number two coffee customer) and/or a ripple effect leading to cuts 
by other purchasers would have a severe impact on the already-shaky 
economy.  Post is coordinating with the Embassy of Japan to learn 
the results of the testing and will report on any additional 
developments.  Ethiopian coffee exported to the U.S. has not yet 
tested positive for any of these banned insecticides, and it is not 
clear if levels identified in coffee imported by Japan are within 
permissible U.S. levels.  Still, if such insecticides are found in 
coffee exports to the U.S. or EU it could have an even greater 
detrimental impact on Ethiopia's biggest export earner at a time 
when the Ethiopian economy can least sustain the shock.  END 
COMMENT. 
 
YAMAMOTO