March 21, 2011
Ridley eyes Japan''s animal feed, salt sales
Rebuilding mills in Japan after the devastating earthquake on March 11 could take a year and Ridley will seek to boost sales from demand arising from the disaster, stated the company''s head on Friday (Mar 18).
"We''re exploring the opportunities that might provide us so long as the animals are still there that need feeding," said John Murray, chief executive of Australian-based stock feed and salt producer Ridley Corp.
Major grain import facilities in northern Japan suffered severe damage in last week''s natural disaster, with roughly 30% of the country''s livestock feed production capacity affected, the US Grains Council said Thursday. Much of the capacity of the damaged feed mills is being covered by mills in other areas of the country and mills restarting after the disaster, the trade group said.
Japan has a total compound feed production capacity of 25 million tonnes. The council warned it''s still awaiting official reports on the earthquake''s total impact on the grain trade.
Murray said rebuilding of feed mills in Japan could take a year or more.
The company, which Australia''s major animal feed and salt firm, already exports 14,000 tonnes a year to Japan through its Cheetham Salt unit. It maintains an office in Tokyo with two local staff who are reasonably comfortable staying put for now but the office would be closed and moved south on official advice, he said. Cheetham salt, some of which is iodised and is delivered in shipping containers to many different ports in Japan, is used in a wide range of food and other products, he said.
Japan''s nuclear crisis is fueling panic buying of salt in China. China''s Ministry of Commerce said Friday this is mainly due to rumours that iodised salt can protect against radiation from damaged nuclear power plants in Japan. It said salt supply is sufficient.
China''s top economic agency, the National Development and Reform Commission, warned consumers Thursday against hoarding salt, and said it would work with local authorities to maintain price stability and market supply. Grocery store shelves have been ransacked over the past several days.