March 6, 2009
Japan to cut livestock, dairy farming subsidies by 40 percent
Japan plans to reduce subsidies for dairy and livestock farmers by 40 percent this year to about JPY158 billion (US$1.6 billion), sources said.
The government is looking to cut from fiscal 2008's record subsidy of JPY260.9 billion (US$2.66 billion) by this month because feed prices have dropped about 20 percent this year in line with declining corn prices.
While the government will reduce feed-related subsidies, it intends to increase subsidies for the production of dairy products by JPY0.15 to JPY12 per kg to help dairy farmers hit hard by the economic downturn.
The sources said the subsidies will be tapped from Agriculture & Livestock Industries Corp, an independent administrative agency.
