Prices of Japanese beef calves are continuing to show an unprecedented uptrend, due to supply shortage following the outbreak of foot-and-mouth disease in 2010 and the March 2011 earthquake and tsunami.
The average price of a calf marked 478,972 yen in June, up 19.6% from a year before, marking the highest level for June since 2007, according to the National Federation of Agricultural Cooperative Associations (JA Zen-noh). The prices are expected to continue their strong performance, as there are few factors that can contribute to price declines.
The number of beef calves traded in the nation’s 39 designated markets totaled 26,091 head in June, rising 3% from a year before. But according to the report by the Agriculture & Livestock Corporation, the number of calves traded in the January-June period was 10% less than the same period in 2009, the level before the outbreak of foot-and-mouth disease, indicating continuing shortage in supply.
Because of the tight supply, the prices have continued to rise since November 2012. Usually the prices tend to drop in June because calf feeders prefer buying calves in the earlier months to make them ready for shipment in the high-demand season, but this year prices continue to stay high.
The prices of calves in June marked a year-on-year increase in all of the designated markets. In the Kyushu region, the prices in all markets surged by 20% or 30% from a year before. Officials of JA Zen-noh’s representative office for feeder calves in Kyushu said some cattle feeders have not secured the number of calves they need, as they refrain from purchasing calves because of high prices. Commenting on the continuing upward trend, the officials said they have never seen prices rise in June except for 2010, when the prices were affected by the outbreak of foot-and-mouth disease.
(July 12, 2013)