The government decided on Thursday, December 19, to increase in fiscal 2014 all subsidies to dairy farmers and livestock breeders, including funds to producers of milk for processing and to those who rear cows with high breeding value.
Subsidy for producers of milk for processing will be raised to JPY 12.8 per kilogram, up JPY 0.25, with JPY 0.2 added for fiscal 2014 only. The government will allocate JPY 400 million for organizations which conduct inspections to improve breeding management. Subsidy for producers of milk used to manufacture cheese is increased to JPY 15.41 per kilogram. The increase in subsidies for milk producers, when calculated in terms of milk for processing, will result in assistance totaling JPY 13.25 per kilogram, according to government estimates.
As for prefectural-level assistance, the project to support self-supply of feed, which was introduced as part of the fiscal 2012 supplementary budget to cope with increasing prices of imported feed, will be revised to make it more user-friendly. Breeders who promote use of domestically-grown feed through cooperation with crop growers will be subject to a subsidy of JPY 6,100 per delivered cow. A total of JPY 12.7 billion is allocated for the project in fiscal 2014, which will also include assistance to lease arrangements for machinery procurement at total mixed ration (TMR) centers and wide-area distribution of domestically-grown feed.
To strengthen support for beef breeders, the government will allocate JPY 800 million to raise the subsidy for breeders with 10 cattle or more to JPY 100,000 per cattle, up from the current JPY 80,000, provided that the breeders introduce cattle with high breeding value. Most cattle meet the requirement, according to the agriculture ministry.
JPY 200 million will be set aside to expand assistance to small-scale breeders, mainly elderly farmers, to JPY 50,000 per cattle from the current JPY 40,000, if they purchase cattle with high reproductive ability. The measure is aimed at supporting such breeders so that they can maintain the number of cattle and also start breeding Japanese wagyu beef, such as through assisting expansion of their breeding facilities and transplantation of fertilized eggs of Japanese black cattle to their milking cows.
Assistance for dairy farmers will be doubled in fiscal 2014 to JPY 800 million to succeed the dairy farmers support project which ends this fiscal year. The funds will be used to strengthen fostering of beginning dairy farmers and start a babysitting service for dairy farmers at the time of sickness and injuries.
The standard cattle prices for offering subsidies to veal breeders will be raised for all five breeds including Japanese black cattle, taking into account the sales tax hike scheduled in April.
(Dec. 20, 2013)