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Egg Producers in Japan Receive Government Support

07/08/2021

According to USDA-FAS GAIN Report JA2021-0102 released on June 29th, two programs benefit egg producers both of which are managed by the Japan Poultry Association.  The Egg Farm Management Stabilization Program provides compensation when prices fall below a floor price.  The second program is the Incentive Payment for Unoccupied Housing when facilities are empty for a period extending from two to six months.

 

The Stabilization Program monitors the difference between standard price and wholesale market realization.  The joint fund to provide stabilization is maintained by Ministry of Agriculture, Food and Fisheries contributing 12.5 percent and the egg industry, 87.5 percent.  The compensation standard price is set at $1.25 per dozen. When the standard price falls below $1.10 per dozen, 90 percent of the difference is paid to producers from the joint fund.

 

To receive support from the Incentive Payment Program for Unoccupied Housing, flocks must have been depleted within 30-days prior to a drop in price and houses must be unoccupied for at least 60 days. A sliding scale of compensation is applied according to flock size and duration of non-production.  The fund to support producers is maintained from a 75 percent contribution by the Government of Japan and 25 percent from producers.