April 6, 2006

Japanese meat companies to raise prices for pork-based goods

Higher import price for pork leaves Nippon Meat Packers Inc no choice but to raise the prices of its pork-based processed goods by an average of 10 percent, company officials said.

The Osaka-based company said price hikes are expected to take effect in June.

Other major makers of ham and sausage products such as Itoham Foods Inc and Marudai Food Co are also considering upping their prices, officials at the companies said.

Higher demand has fuelled the price increase in pork imports as consumers, unnerved by the news of mad cow disease and bird flu, switched to pork.

As a result, demand for beef and chicken-based food items have dipped while pork has gained favour among consumers, Nippon Meat officials said.

The products slated for price hikes also include a wide range of disparate items such as pizza and other prepared food items. The company is adopting such a measure as it expects pork prices to keep rising in the next few months, a Nippon Meat official said.

Globally, the price of pork imports have risen nearly 10 percent during the past 12 months, partly deal to higher demand from Russia and China, industry officials said.