The massive floods in Thailand are expected to affect food supplies in Japan, which imports large quantities of chicken and shrimp, as well as food packaging materials, from the Southeast Asian country.
Thailand's Ministry of Agriculture and Cooperatives has reported an estimated losses of 13.3 million of livestock in the ongoing floods that have swept through central Thailand. As of end October, a total of 162,180 livestock farmers were affected and 13.3 million livestock were damaged. Of the total, 12.82 million were poultry, 254,706 were cattle and cows, and 189,904 were pigs. The government has approved an initial budget of THB 3.645 billion (USD 119.27 million) to three key departments including the Department of Agricultural Extension, Livestock Department and Fisheries Department.
Japanese food companies may be required to take countermeasures or prepare for supply shortages and price hikes toward the peak yearend shopping season, industry sources said.
Nippon Meat Packers Inc. and Ajinomoto Co. said they have already suspended their Thai chicken processing facilities due to the floods and plan to cover immediate supply shortages with domestic inventories and production at other facilities. "We may be able to avoid any impact of the floods on luxury New Year dishes and roast chickens for Christmas," a major retail chain official said.
But Maruha Nichiro Holdings Inc. cannot produce some products due to shortages of cardboard and other packaging materials for transporting frozen food products from Thailand. It is considering procuring such materials in neighboring countries.
A yakitori chain based in eastern Japan said suppliers of Thai chickens have requested to shorten contract terms to three months from six because of uncertain supply prospects. "Effects on our business are emerging gradually," said an official at the chain, which imports Thai chickens after their processing in China.
"We expect to see no problem within this year," said an official at McDonald's Holdings Co. (Japan) Ltd., which imports shrimp and chickens for burgers. "If the floods' impacts are prolonged, we may seek to receive supply from alternative sources and coordinate transportation according to daily changes," the official said.
Source: The Japan Times
