August 26, 2008
Japan meat processors expand domestic feedlot opportunities
Meat companies are strengthening their cattle and chicken feedlot operations in Japan in anticipation of growing demand for domestically raised beef and poultry as consumer concerns about food safety grow, The Nikkei reported in its Tuesday (August 26) morning edition.
S Foods Inc. recently set up a subsidiary that specializes in feedlot operations and will begin shipping cattle in 2010. Having its own feedlot unit will enable S Foods to achieve better production management by inspecting feed and meat quality.
Itoham Foods Inc. is working with domestic ranches to increase the number of cattle being fattened for market to 20,000 by the end of fiscal 2009, a 14 percent year-over-year increase. The company previously increased the number of cattle at its ranches in Australia, but profitability has been waning due to high feed costs there and rising shipping expenses.
Marudai Food Co. is working with ranches on the outskirts of cities in the Kanto and Kansai regions to fatten more Japanese and crossbred cattle.
Nippon Meat Packers Inc. plans to purchase small and midsize ranches as part of efforts to increase the number of chickens it can bring to market as the relative inexpensiveness of poultry raises its appeal.