May 21, 2011

 

Prices of corn in Japan rising on shipping expenses

 

 

Corn costs in Japan, the biggest importer, are rising after shipping fees increased because of concern over nuclear radiation, boosting expenses of animal-feed makers.

 

Importers need to pay about 5% more to ship corn from the US Gulf to ports in eastern Japan compared with the west, on concern that vessels may be tainted by radiation leaking from the Fukushima Dai-Ichi power station, said Nobuyuki Chino, the president of Tokyo-based grain company Continental Rice Corp.

 

Corn more than doubled in CBOT in the past year and climbed to the highest since 2008 as global supplies failed to keep pace with demand. That helped drive up world food costs by 36% to a near record in April, according to the UN, prompting central banks from Beijing to New Delhi to increase interest rates. For feed makers in Japan, the higher shipping fees make ingredients more expensive.

 

"Freight operators are still showing an aversion for eastern Japan," said Hideo Harada, director for livestock policy planning at the Ministry of Agriculture, Forestry and Fisheries.