December 20, 2008
Japan's Zen-Noh to reduce Q1 feed prices by JPY 12,200
Zen-Noh, Japan's largest feed maker, said on Friday (Dec 19) it will reduce its first quarter compound feed prices by JPY12,200 (US$136.6) per tonne from the previous quarter, due to recent falls in purchasing costs.
This is the biggest price cut and the first quarterly fall since the fourth quarter of 2007, said Zen-Noh.
Feed industry sources said this reflects the fall in corn prices and freight costs.
The price cut is expected to ease pressures on the livestock industry, which has struggled to pass higher production costs to the consumers when feed prices were rising earlier in the year.
Zen-Noh had said it will raise its October-December 2008 compound feed prices by about JPY 2,500 (US$28) a tonne on average from the previous quarter.
Japan grows hardly any corn and imports about 12 million tonnes annually for animal feed, mostly from the US, making it the world's biggest corn importer.