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June 17, 2009
Japan livestock feed prices to rise 5 to 6 percent in July-September period
The price of feed for domestic livestock will be raised by 5-6 percent in the July-September period, marking the first hike in three quarters, the Nikkei reported in its Wednesday (June 17) morning edition.
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The increase will come to about Y3,000 (US$31.09) per tonne for formula feed supplied by Nippon Formula Feed Mfg. Co. (2056.TO), Nosan Corp. (2051.TO), and the National Federation of Agricultural Cooperative Associations. This feed is selling for an estimated Y52,000 (US$539.15) per tonne in the April-June quarter.
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International prices of corn - the main ingredient - have risen sharply, pressuring feed suppliers, which produce a total of 24 million tonnes a year. With the feed price hike, they will be passing on about Y72 billion (US$746.49 million) in annual costs to products.
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US$1 = JPY96.45 (June 16)
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