Japanese beef prices set to climb

Japanese beef prices — already the world's highest — are about to get even higher, the country's farmers said Wednesday, warning that livestock feed prices have shot up from the global rush for ethanol.

But the farmers pleaded for understanding from consumers, saying they face extremely difficult times.

"We are facing a crisis that is endangering our very survival," said Toshihiko Baba of JA Group, the nation's top agricultural organization. "This is unprecedented in being unlike any other feed price problems we have experienced."

Baba and the other farmers said they will start a public campaign of their plight Saturday, passing out 25,000 free packages of tissue paper on Tokyo streets with leaflets that explain why meat prices must go up.

The cost of feed in Japan has risen by about a third over the last year, mainly because of the rise in corn prices in the U.S., the world's leading producer of the cereal plant. Corn is used to make ethanol, a biofuel in growing demand thanks to soaring oil prices.

The farmers told reporters at JA's Tokyo office that the price-setting system here makes it difficult for prices to reflect feed costs.

Japan is notorious for high prices. Melons here can sell for as high as ¥10,000 each.

Although some prices, including bread and instant noodles, have climbed from ethanol demand, Japanese meat prices, set in negotiations with chain stores, have stayed roughly the same in recent years — ¥850 for 100 grams.

That's about a tenth of the cost of U.S. beef, which has been creeping up lately on higher ethanol prices. Beef prices in the U.S. last year rose about 4 percent from the previous year, and pork prices are up 2 percent. Retail beef prices vary, but beef costs about $4 a pound (about 450 grams) in American stores.

To account for the rise in feed costs, the price of Japanese beef will need to go up ¥15 per 100 grams, the farmers said.

"We are going straight to the consumer to gain their understanding," said Shigeru Nishibaba, an organization official.

Over the years, Japanese farmers have been dwindling amid international competition and the need to switch to large-scale ranches and farms to cut costs.

The number of beef cattle farms has nosedived over the last four decades to 86,000 nationwide from 1.16 million, according to JA. Japan now has 7,800 hog farms, down from 714,000, and 26,000 dairy farms, down from 360,000 in 1966.

But the farmers stressed the need to keep food production alive in Japan to ensure food safety.

Concerns about Chinese imports have been growing lately after a recent large-scale food poisoning from dumplings that had been laced with massive levels of pesticide. Police suspect foul play.

The agricultural group said it was determined to drum up consumer support for their industry.

At Saturday's event, a former star sumo wrestler will introduce "chanko," a dish of meat and vegetables cooked in soup famous in the traditional sport.

The farmers also demanded the government enact new measures to respond to the feed crunch. The funds for hedging against falling meat prices and fluctuating feed prices of the past are inadequate for the latest crisis, they said.

In 1960, Japan produced almost all the beef, pork and dairy products the nation consumed. In recent years, Japan has imported about half of its beef and pork, as well as about a third of its dairy products.

"We want to continue to provide a stable food supply," Nishibaba said.