USDA GAIN: Oilseeds, Cotton, Sugar, Grain and Feed
28 January 2013
USDA GAIN: Japan Grain and Feed Update - January 2013
Due to an increase in ingredient costs, primarily corn, the price of feed soared in the third quarter of
Japan’s Fiscal Year 2012 (October-December 2012). However, thanks to the subsidies that fully
absorbed this hike, Japan’s feed consumption and production remain stable. Post updated PS&Ds for
rice and barley, as the Ministry of Agriculture, Forestry and Fisheries (MAFF) announced Japan’s 2012
production statistics for these commodities. 
Overall Market Situation
Up-to-date feed production statistics and a detailed breakdown of feed ingredient utilization ratios
follow. The trend away from corn to wheat continues.
Japan has a feed stabilization program, where the combination of a subsidy by the Ministry of Agriculture, Forestry and Fisheries (MAFF) and an industry fund helps absorb sudden surges in the compound feed price. It is activated when the import costs of ingredients in a particular quarter exceed the average import costs of ingredients in the previous one year. As the graph below shows, during the most recent quarter (October-December 2012), compound feed prices increased by 4,750 yen per metric ton, from 58,500 yen to 63,250 yen. The subsidy entirely absorbed this increase.
Compound Feed Price
Rice Updates
In early December, MAFF announced statistics for 2012 rice production. Overall production volume increased 1.4 percent over the previous year as a result of a slight increase in planted area and a favorable yield due to an absence of inclement weather conditions throughout the growing season.
Japan's Rice Production (Brown Basis)
Revised PS&D
Barley Updates
In late November, MAFF announced statistics for 2012 barley production. Both the planted area and the production volume remained near the previous year’s level. Barley grown domestically is used for non-feed purposes such as beer, barley tea, shochu (distilled liquor), and miso (soybean paste).
Crop Area and Production of Barley in Japan
January 2013
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