August 28, 2007

More Japanese chicken farms go bankrupt as high corn prices hit

More poultry companies in Japan are going bankrupt as high corn prices impacted on chicken feed prices.

Thirteen poultry farmers went bankrupt during the first seven months of 2007, compared with 10 for the whole of 2003, the year which saw the most bankruptcies since 2000, according to Tokyo Shoko Research Ltd.

Bankrupt farmers are those who have accumulated debts of 10 million yen (US$88,000) or more.

In Japan, prices of corn associated livestock feeds were 30 percent higher than in 2006 and have hit their highest level in 11 years, according to the farm ministry.

More than 90 percent of Japan's corn comes from the US, where prices are still rising.