February 5, 2004

Pork Prices in Japan Soar 40%

Wholesale prices of pork in Japan increased by 40% in the past two weeks, as demand for pigmeat soared following bans on beef and poultry imports, industry officials said Wednesday.

With the outbreak of the first case of mad cow disease in the United States in late 2003 and the bird flu spreading in Asia, Japanese restaurant operators are turning to pork for their dishes, resulting in a shortage of pork in the food sector, the officials said.

If the tight supply continues, retail prices will also rise, they said.

Wholesale prices of pork at the Metropolitan Central Wholesale Market in Tokyo jumped to 619 yen per kilogram at the end of December due to buying by speculators who anticipated a surge in demand following the Dec. 23 discovery of mad cow disease in the U.S., according to market officials.

The prices dropped to normal levels at around 350 yen at the beginning of January and stayed there until mid-January as most of the meat trading for year-end and New Year consumption had ended, they said.

In late January, however, prices started surging again and hit 488 yen on Wednesday, up about 1.4-fold from 10 days earlier.

Prices of domestic beef, which competes with U.S. beef, have been relatively stable, the officials said.

"Usually, the amount of pork trading should decrease by this time of the year but this year is different," said a pork trader at the metropolitan market.

"Pork prices may stay at high levels until the summer as it takes months for pigs to grow big," he added.