August 3, 2011

Japan's beef sector to be reimbursed over contaminated beef scare

Any damage from a contamination panic caused by the distribution of meat tainted with radioactive cesium will result in a reimbursement to Japan's beef sector, according to informed sources on Tuesday (Aug 2).

A government panel is considering approving compensation payments to cow farmers and other industry members in 17 prefectures where meat from cows fed with cesium-contaminated rice straw has been distributed, the sources said.

Beef prices have fallen sharply since July 8, when beef containing radioactive cesium exceeding the legal limit of 500 becquerels per kilogramme was discovered for the first time, agriculture ministry officials said.

Prices have declined by more than 70% in Tochigi, Iwate and Gunma, the officials said, adding that many farmers have been hit by a sharp decline in business or have even seen their cows rejected outright.

At a meeting on Friday (Aug 5), the science ministry panel will determine interim guidelines on the coverage of compensation for damage caused by the nuclear crisis at Tokyo Electric Power Co.'s Fukushima number one power plant, including details of payments to affected cattle farmers.

The 17 prefectures, ranging from the northernmost to western Japan regions, are Hokkaido, Aomori, Iwate, Miyagi, Akita, Yamagata, Fukushima, Tochigi, Ibaraki, Chiba, Gunma, Saitama, Shizuoka, Gifu, Niigata, Mie and Shimane.