January 13, 2004

Japan's Egg and Chicken Prices Unaffected By Bird Flu

Japan's first case of bird flu in 79 years has not affected egg and poultry prices as markets remained calm on Tuesday. However, traders are worried about its consequences on consumer confidence.

According to the National Federation of Agricultural Co-operative Associations (Zen-Noh), midsize eggs traded at 85 yen per kilogram Tuesday in the Tokyo, Kinki and Chukyo regional markets and at 80 yen in Kyushu, all unchanged since Jan. 5.

However, poultry industry officials said an increasing number of wholesalers are balking at taking eggs produced in Yamaguchi Prefecture, where nearly 6,000 chickens died of bird flu at a poultry farm.

Some retailers have already stopped selling poultry products shipped from the western Japan prefecture and there are fears the movement may spread to other parts of the nation's poultry industry, the officials said.

Zenno Chicken Foods Corp., based in Hyogo Prefecture, said it deals mostly with products from the Kyushu region and has not observed any impact of the flu outbreak on their wholesale prices.

Commenting on the fact that the infected hens were kept for egg-laying purposes, an official of the company said, "Consumers don't care whether it involves eggs or meat. I'm afraid how they will react."