December 19, 2007

Japan's Zen-Noh reports higher feed prices for Q1

Zen-Noh, Japan's biggest feed maker, announced to increase January-March compound feed prices by JPY3,900 (US$34.5) a tonne.

The feed producer points to higher freight costs and rise in corn and soymeal prices as the culprits in the announced price hikes.

Zen-Noh said on Tuesday the higher prices partly reflect a tight corn supply outlook in the US propping up Chicago corn prices. Prices of locally produced soymeal are also on the rise as Chicago soy futures are at their highest levels in decades.

Corn is traditionally a major feed component in Japan. The country purchases some 12 million tonnes a year of corn for feed use from abroad, mostly from the US.

Zen-Noh also pointed that freight rates jumped sharply with modern Panamax rates for the US Gulf-Japan route rising to or above US$120 per tonne from around US$90 in August.

Zen-Noh, or the National Federation of Agricultural Co-operative Associations holds 30 percent share of the domestic livestock feed market.

Other feed makers, such as Nosan Corp., are expected to raise feed prices for the January-March period.