Japan. Feed Market Situation. Mar 2015 April 9, 2015
With very little commercial production of feed grains domestically, Japan's feed industry relies almost entirely on imported grains. Corn ordinarily makes up about half of all feed ingredients. For decades, the United States has provided over 90 percent of import supplies of corn to Japan. Following unstable corn supply from the United States in Marketing Year (MY) 2012/13 due to drought, which resulted in U.S. corn's import market share falling to a low of 23 percent, the market share of U.S. corn recovered to 90 percent in the latter half of MY 2013/14. For the first four months of MY2014/15, the market share of U.S feed corn gradually declined to 54 percent, as Japan imported second crop corn from Brazil prior to the new crop arriving from the United States. The market share of U.S. corn is expected to recover in the latter half of MY 2014/15.
The table below shows a detailed breakdown of the feed ingredient utilization ratio. In the first eight months of Japanese Fiscal Year (JFY; April-March) 2014, the ratio of corn in feed mostly recovered from the short corn supplies of JFY2012 and 2013, to around 45 percent. The total production volume of compound and mixed feed in JFY2013 was below 24 million metric tons (MT) for the first time since JFY2004, and is on track to be even lower in JFY2014. With declining livestock numbers, feed production is not expected to increase in the near future, but is expected to remain around this level. Use of rice and DDGS has increased notably in JFY2014. Unlike corn, rice and DDGS are used primarily for poultry feed – approximately 70 percent of rice and 60 percent of DDGS.
Feed Utilization by Ingredients (Unit: MT)
Japan Fiscal Year (April-March) | Corn | Sorghum | Wheat | Wheat Flour | Barley | Rice | Rye | Other Grains | DDGS | Non-grain Ingredients | TOTAL |
2004 | 11,853,348 | 1,395,749 | 90,306 | 127,382 | 770,921 | 285,932 | 259,442 | 123,399 | NA | 9,062,877 | 23,969,356 |
49.50% | 5.80% | 0.40% | 0.50% | 3.20% | 1.20% | 1.10% | 0.50% | 37.80% | 100.00% | ||
2005 | 11,894,303 | 1,335,574 | 101,539 | 122,738 | 792,159 | 325,605 | 233,518 | 119,150 | NA | 9,228,722 | 24,153,308 |
49.20% | 5.50% | 0.40% | 0.50% | 3.30% | 1.30% | 1.00% | 0.50% | 38.20% | 100.00% | ||
2006 | 12,017,330 | 1,280,438 | 103,640 | 129,212 | 826,682 | 425,942 | 219,254 | 126,810 | NA | 9,291,274 | 24,420,582 |
49.20% | 5.20% | 0.40% | 0.50% | 3.40% | 1.70% | 0.90% | 0.50% | 38.00% | 100.00% | ||
2007 | 12,005,863 | 1,137,809 | 95,075 | 131,695 | 859,952 | 557,571 | 152,506 | 143,979 | NA | 9,434,064 | 24,518,514 |
49.00% | 4.60% | 0.40% | 0.50% | 3.50% | 2.30% | 0.60% | 0.60% | 38.50% | 100.00% | ||
2008 | 12,059,732 | 1,240,344 | 111,597 | 145,387 | 859,024 | 468,000 | 60,739 | 153,138 | NA | 9,449,421 | 24,547,382 |
49.10% | 5.10% | 0.50% | 0.60% | 3.50% | 1.90% | 0.20% | 0.60% | 38.50% | 100.00% | ||
2009 | 11,908,859 | 1,722,923 | 164,014 | 136,567 | 911,019 | 256,020 | 53,924 | 145,614 | NA | 9,554,496 | 24,853,436 |
47.90% | 6.90% | 0.70% | 0.50% | 3.70% | 1.00% | 0.20% | 0.60% | 38.40% | 100.00% | ||
2010 | 11,614,834 | 1,464,181 | 223,429 | 135,379 | 901,680 | 401,463 | 103,389 | 152,545 | 219,189 | 9,321,592 | 24,537,681 |
47.30% | 6.00% | 0.90% | 0.60% | 3.70% | 1.60% | 0.40% | 0.60% | 0.90% | 38.00% | 100.00% | |
2011 | 10,935,808 | 1,413,787 | 402,609 | 151,537 | 878,047 | 652,573 | 74,028 | 149,393 | 362,970 | 9,218,996 | 24,239,748 |
45.10% | 5.80% | 1.70% | 0.60% | 3.60% | 2.70% | 0.30% | 0.60% | 1.50% | 38.00% | 100.00% | |
2012 | 10,317,271 | 1,653,366 | 965,993 | 159,886 | 900,739 | 472,131 | 16,739 | 150,236 | 426,965 | 9,053,078 | 24,116,404 |
42.80% | 6.90% | 4.00% | 0.70% | 3.70% | 2.00% | 0.10% | 0.60% | 1.80% | 37.50% | 100.00% | |
2013 | 10,445,875 | 1,511,073 | 853,214 | 158,600 | 896,174 | 512,132 | 16,870 | 146,597 | 472,613 | 8,925,813 | 23,938,963 |
43.64% | 6.31% | 3.56% | 0.66% | 3.74% | 2.14% | 0.07% | 0.61% | 1.97% | 37.30% | 100.00% | |
2014/April | 917,235 | 62,998 | 42,945 | 13,596 | 72,117 | 65,161 | 1,378 | 10,734 | 42,831 | 732,800 | 1,961,795 |
46.80% | 3.20% | 2.20% | 0.70% | 3.70% | 3.30% | 0.10% | 0.50% | 2.20% | 37.40% | 100.00% | |
May | 928,828 | 63,901 | 40,263 | 13,585 | 72,312 | 68,367 | 1,200 | 10,857 | 43,972 | 740,113 | 1,983,398 |
46.80% | 3.20% | 2.00% | 0.70% | 3.60% | 3.40% | 0.10% | 0.50% | 2.20% | 37.30% | 100.00% | |
June | 868,846 | 59,963 | 37,763 | 13,175 | 68,119 | 65,765 | 1,115 | 10,282 | 41,607 | 697,202 | 1,863,837 |
46.60% | 3.20% | 2.00% | 0.70% | 3.70% | 3.50% | 0.10% | 0.60% | 2.20% | 37.40% | 100.00% | |
July | 873,013 | 71,437 | 38,848 | 14,084 | 71,905 | 74,907 | 1,361 | 10,899 | 43,127 | 724,780 | 1,924,361 |
45.40% | 3.70% | 2.00% | 0.70% | 3.70% | 3.90% | 0.10% | 0.50% | 2.20% | 37.80% | 100.00% | |
Aug | 817,140 | 71,253 | 36,232 | 13,451 | 66,793 | 72,785 | 1,263 | 10,663 | 41,220 | 685,182 | 1,815,982 |
45.00% | 3.90% | 2.00% | 0.70% | 3.70% | 4.00% | 0.10% | 0.60% | 2.30% | 37.70% | 100.00% | |
Sept | 860,661 | 77,402 | 38,126 | 13,271 | 69,337 | 79,819 | 1,354 | 11,218 | 43,351 | 718,213 | 1,912,752 |
45.00% | 4.00% | 2.00% | 0.70% | 3.60% | 4.20% | 0.10% | 0.60% | 2.30% | 37.50% | 100.00% | |
Oct | 938,718 | 89,533 | 38,062 | 14,406 | 75,441 | 93,757 | 1,574 | 12,206 | 50,451 | 779,499 | 2,093,647 |
44.80% | 4.30% | 1.80% | 0.70% | 3.60% | 4.50% | 0.10% | 0.58% | 2.40% | 37.23% | 100.00% | |
Nov | 859,572 | 84,426 | 33,309 | 13,078 | 65,952 | 91,655 | 1,278 | 11,219 | 48,469 | 709,500 | 1,918,458 |
44.80% | 4.40% | 1.70% | 0.70% | 3.40% | 4.80% | 0.10% | 0.58% | 2.50% | 36.98% | 100.00% | |
April-Nov | 7,064,013 | 580,913 | 305,548 | 108,646 | 561,976 | 612,216 | 10,523 | 88,078 | 355,028 | 5,787,289 | 15,474,230 |
45.65% | 3.75% | 1.97% | 0.70% | 3.63% | 3.96% | 0.07% | 0.57% | 2.29% | 37.40% | 100.00% |
Source: Feed Supply Stabilization Organization
Feed Utilization by Ingredients and Use in Japan Fiscal Year 2013 (April 2013 - March 2014, Unit: MT)
Corn | Sorghum | Wheat | Wheat Flour | Barley | Rice | Rye | Other Grains | DDGS | Grain Total | Non-grain Ingredients | Total |
Layer | |||||||||||
2,957,665 | 286,497 | 45,986 | 3,093 | 0 | 168,961 | 0 | 3,445 | 279,019 | 3,744,666 | 2,409,202 | 6,153,868 |
48.1% | 4.7% | 0.7% | 0.1% | 0.0% | 2.7% | 0.0% | 0.1% | 4.5% | 60.9% | 39.1% | 100.0% |
Broiler | |||||||||||
1,625,092 | 528,803 | 43,109 | 13,555 | 528 | 172,062 | 12 | 6,281 | 50,932 | 2,440,374 | 1,383,046 | 3,823,420 |
42.5% | 13.8% | 1.1% | 0.4% | 0.0% | 4.5% | 0.0% | 0.2% | 1.3% | 63.8% | 36.2% | 100.0% |
Poultry Total | |||||||||||
4,582,757 | 815,300 | 89,095 | 16,648 | 528 | 341,023 | 12 | 9,726 | 329,951 | 6,185,040 | 3,792,248 | 9,977,288 |
45.9% | 8.2% | 0.9% | 0.2% | 0.0% | 3.4% | 0.0% | 0.1% | 3.3% | 62.0% | 38.0% | 100.0% |
Dairy Cattle | |||||||||||
1,297,102 | 21,922 | 77,434 | 30,806 | 72,455 | 31,868 | 5,515 | 16,908 | 58,084 | 1,612,094 | 1,479,691 | 3,091,785 |
42.0% | 0.7% | 2.5% | 1.0% | 2.3% | 1.0% | 0.2% | 0.5% | 1.9% | 52.1% | 47.9% | 100.0% |
Beef Cattle | |||||||||||
1,747,885 | 50,153 | 77,514 | 45,315 | 740,306 | 17,677 | 3,413 | 11,498 | 24,612 | 2,718,373 | 1,750,961 | 4,469,334 |
39.1% | 1.1% | 1.7% | 1.0% | 16.6% | 0.4% | 0.1% | 0.3% | 0.6% | 60.8% | 39.2% | 100.0% |
Cattle Total | |||||||||||
3,044,987 | 72,075 | 154,948 | 76,121 | 812,761 | 49,545 | 8,928 | 28,406 | 82,696 | 4,330,467 | 3,230,652 | 7,561,119 |
40.3% | 1.0% | 2.0% | 1.0% | 10.7% | 0.7% | 0.1% | 0.4% | 1.1% | 57.3% | 42.7% | 100.0% |
Swine | |||||||||||
2,596,984 | 618,981 | 602,884 | 63,286 | 68,283 | 117,894 | 138 | 95,798 | 55,435 | 4,219,683 | 1,733,068 | 5,952,751 |
43.6% | 10.4% | 10.1% | 1.1% | 1.1% | 2.0% | 0.0% | 1.6% | 0.9% | 70.9% | 29.1% | 100.0% |
Feed, Other | |||||||||||
23,366 | 2,924 | 174 | 1,718 | 1,463 | 139 | 0 | 937 | 203 | 30,924 | 31,040 | 61,964 |
37.7% | 4.7% | 0.3% | 2.8% | 2.4% | 0.2% | 0.0% | 1.5% | 0.3% | 49.9% | 50.1% | 100.0% |
Compound Feed Total | |||||||||||
10,248,094 | 1,509,280 | 847,101 | 157,773 | 883,035 | 508,601 | 9,078 | 134,867 | 468,285 | 14,766,114 | 8,787,008 | 23,553,122 |
43.5% | 6.4% | 3.6% | 0.7% | 3.7% | 2.2% | 0.0% | 0.6% | 2.0% | 62.7% | 37.3% | 100.0% |
Mixed Feed | |||||||||||
197,293 | 1,879 | 6,466 | 827 | 13,307 | 3,531 | 7,792 | 11,730 | 4,328 | 247,153 | 138,482 | 385,635 |
51.2% | 0.5% | 1.7% | 0.2% | 3.5% | 0.9% | 2.0% | 3.0% | 1.1% | 64.1% | 35.9% | 100.0% |
Feed Total | |||||||||||
10,445,387 | 1,511,159 | 853,567 | 158,600 | 896,342 | 512,132 | 16,870 | 146,597 | 472,613 | 15,013,267 | 8,925,490 | 23,938,757 |
43.6% | 6.3% | 3.6% | 0.7% | 3.7% | 2.1% | 0.1% | 0.6% | 2.0% | 62.7% | 37.3% | 100.0% |
Source: Feed Supply Stabilization Organization
Japan maintains a feed price stabilization program, whereby the combination of a subsidy by the Ministry of Agriculture, Forestry and Fisheries (MAFF) and an industry fund helps absorb sudden surges in compound feed prices. The feed price stabilization program was revised in April 2014, allowing for the activation of supplemental compensation during times of rising prices. Reflecting the continued depreciation of the yen, imported feed grain prices have risen since the 1st quarter of JFY2014 (April – June 2014). As a result, the compensation was activated for the 3rd quarter of JFY2014 (September – December 2014), as the average price of the imported feed grains for the quarter (33,979 Yen/MT) was higher than the standard import price (the average price of the previous 12 months) of 33,165 Yen/MT. Thus the difference between these two prices, 800 yen/MT, was paid to farmers as regular compensation.
