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United Producers was victimized three years ago by the biggest cattle-
fraud case in U.

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"We look forward to
working with our customers in the coming months as we take steps that will
result in an even stronger United Producers.
The country is facing a serious deficit in disease surveillance and
emergency preparedness, both crucial elements in fighting endemic and exotic
animal diseases, FAO said.

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Additionally, Producers
Credit Corporation will continue to conduct business as before.S.


"Brucellosis is a bacterial disease passed to humans from milk,
causing recurring fever, joint pain and severe headaches.

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It is estimated
that over 1.

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United Producers Inc. Files for Reorganization

Any increase in livestock diseases would have a negative effect
on the supply of protein-rich food such as milk, cheese, yogurt, meat and eggs
and would have a severe impact on food security.5 million people.

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Damage
Veterinary services , including hospitals and district clinics, diagnostic
facilities and cold storage and distribution systems have deteriorated over
the past years.
"Iraqi veterinarians consider Brucellosis as the most threatening disease
transmitted from animals to humans," said David Ward, FAO Senior Animal Health
expert.5 million sheep are infected with the disease in the country."

$10 million project
Under a $10 million project, FAO is closely working with veterinary staff
to upgrade the animal health infrastructure and to protect farm animals from
epidemic and endemic diseases and reduce public health risks.
The project will also create opportunities for the private veterinary
sector.

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Restoring Veterinary Services in Iraq

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To Protect Livestock and Humans From Epidemic Diseases
- $10 Million FAO Project

WASHINGTON and ROME , Veterinary services in Iraq
have been severely damaged after years of neglect and post conflict upheavals,
FAO said today.
Iraq has a herd of approximately 2.

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United Producers has reached an
agreement with its bank to fund continuing operations.5 million cattle and 17 million sheep
and goats.
Meat, milk and eggs are the most important source of protein for the
population.

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Many other preventable diseases are of concern, including hemorrhagic
septicaemia, sheep and goat pox and many production limiting diseases, such as
mastitis. Brucellosis, Congo-Crimean haemorrhagic fever and anthrax are also
threats to humans and should be controlled by a modern veterinary service .

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Up to 500
veterinary service and laboratory staff in 15 provincial veterinary hospitals,
220 district clinics and 45 veterinary centers will receive professional
training.

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The UN agency is currently working to restore urgently needed veterinary
services in the country to protect farm animals and humans from epidemic
diseases.

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history.

The project will benefit more than 4.

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"We believe this step will help United Producers reorganize its business
and continue its long record of service to the farming community for many
years to come," said Dennis Bolling, President and CEO.

Key elements of the project are:

* training of veterinary staff to improve its technical and management
skills in disease control and surveillance;

* improving the performance of veterinary field services in the country
through procurement of clinical supplies and equipment;

* restoring diagnostic and quality control laboratories;

* building and equipping nine veterinary centers and seven cold storage
facilities;

* assisting senior veterinary staff in devising disease control and public
health strategies .

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Essential government services will continue, but the role of the
private sector is expected to increase.

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Livestock production is extensive and herds migrate throughout
Iraq and neighboring countries .

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"
Starting Monday, April 4, United Producers will be conducting livestock
operations, and auctions as previous.

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COLUMBUS, Ohio, Today United Producers and
Producers Credit Corporation announced that the companies have filed a Chapter
11 reorganization request with the federal court in Columbus.


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Civil legal proceedings resulting from that have
played a role in the decision to seek protection under Chapter 11.

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The FAO project is funded by the UN Development Group Iraq Trust Fund.

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But with appropriate animal disease control and surveillance, Iraq could
produce much of its animal products and thus reduce the current high level of
imports of meat, animal fats , eggs and dairy products.
Transboundary animal diseases such as Foot-and-Mouth Disease (FMD) ,
screwworm and peste des petits ruminants (PPR) are especially threatening in
Iraq and in the region.

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