Mr. Nomura feeds his cows self-sufficient feed in order to reduce costs.
According to a report in the Nankai Nichinichi Shimbun on September 18, the price of formula feed has skyrocketed in recent years against the backdrop of the situation in Ukraine, the weak yen, and increasing demand from China. According to the “Feed Monthly Report” of the Japan Livestock Feed Supply and Stabilization Organization, the price of formula feed per ton (weighted average price for all livestock breeds) was 99,166 yen in June of this year, having been in the 60,000 yen range from 2012 to around 2020, and rising approximately 1.5 times in the last three years. The main expenses of livestock farming operations include feed costs, depreciation for the introduction of mother cows and construction of cattle sheds, and labor costs. According to the Ministry of Agriculture, Forestry and Fisheries, of the production costs per head of beef cattle in 2009 (national average), the total of material goods costs such as feed and utilities, and labor costs was 646,722 yen, up approximately 40,000 yen from the previous year and up approximately 117,000 yen from 10 years ago. Feed costs accounted for 42.1% of total expenses, up 7 percentage points from 35.1% 10 years ago. Concerned about the impact of rising feed prices on livestock farmers, the Agricultural Policy and Extension Division of the Oshima Prefectural Government has prepared a manual aimed at improving the self-sufficiency rate of roughage. The Beef Cattle Division of the JA Prefectural Federation of Economic Organizations’ Beef Cattle Business Department, stationed in Amami City, also encourages farmers to take three measures to reduce costs, including management of cows to ensure annual production and maintenance of facilities such as cattle sheds. The Amami City office of the Beef Cattle Business Department also cites cost-saving measures for farmers, such as calf management and maintenance of barns and other facilities to ensure annual production. The “Beef Calf Producer Subsidy Program” is a safety net in case of low calf prices. In the case of Japanese black cattle, if the quarterly average trading price falls below the guaranteed standard price (556,000 yen), a subsidy will be issued to the producer. Therefore, no subsidies have been granted. In addition to the subsidy program, MAFF has also launched the “Temporary Management Support Program for Wagyu Producers” in January. The Kyushu-Okinawa block received 15,000 yen per cow from April to June. The full article can be found here.
Click here for the full article
For inquiries about exporting Wagyu beef overseas, please contact
See you again next time on K-blog.