July 21, 2010

 

Animal feed production in Japan shows decrease on FMD

Japan's total compound feed production fell 1% in May from a year earlier, as the foot-and-mouth disease (FMD) outbreak since late April has reduced cattle count, lowering demand, according to farm ministry data.

 

Japan's feed production, of which corn makes up about half, dropped to 1.984 million tonnes from 2.004 million tonnes a year earlier, making it the first on-year fall since January. Output in April rose 1% to 2.176 million tonnes.

 

The outbreak was detected in animals at 292 farms and facilities in Miyazaki prefecture in southern Japan since April 20. It was the country's first case of infection of the highly contagious disease since 2000.

 

"We certainly have fewer customers than before," said a senior manager at a Japanese feed maker. "In Miyazaki prefecture, about 200,000 pigs and 70,000 cows have gone and so much of feed demand has disappeared."

 

Dealers are shipping out cattle earlier than usual in efforts to try and avoid infection of their herds, a move which is also reducing demand for feed, the manager said.

 

As of July 20, a ban imposed on moving animals from one area to another is now only restricted to Miyazaki city. The other areas that were once affected in the prefecture have been declared free of the virus after weeks of sterilisation and clean up.

 

The disease rarely affects humans, and no case of a spread to humans has been reported in the prefecture.

 

Although the containment has been successful, a slow increase in the number of cattle could impact Japan's corn imports of 11-12 million tonnes a year for feed use, most of which are from the US.

 

Suspected cases in Miyazaki, on the southern island of Kyushu, a major livestock producing region, totalled 211,608 animals, including 174,132 pigs and 37,454 cows.

 

In addition, about 46,000 pigs and 31,000 cows have been killed from areas near the main places of the disease. These animals were initially given vaccines to ensure that the disease does not spread and were killed after those that were infected. The number of animals killed in Miyazaki so far accounts for about 2% of Japan's total population of pigs and cows.

 

Lower demand for pig and cow feed in Miyazaki in May was almost balanced by an increase in that for chicken feed.

 

Still, there is little indication that the shortfall in demand in May and June would be made up elsewhere, traders said.