As mentioned in the final sentence of the association outline, in April 2007 JAFMA marked its fiftieth anniversary. Based on policy developed under the Agricultural Basic Law, the association’s path over the past fifty years has been characterized by the process of building business models to secure reasonably priced feedstuff ingredients from throughout the world, mix them appropriately, and supply them to livestock farmers in Japan.

Over those fifty years mixed feed production has risen from 1.23 million tons (in 1957) to 24 million tons (in 2006). Over the same period the number of hens and cocks raised has increased from 45.34 million to 281.3 million, the number of pigs from 1.54 million to 9.72 million, and the number of cattle from 3.17 million to 4.4 million. These figures show the critical role feed suppliers have played in the Japanese diet.

However, the business models built up by our many predecessors over these five decades have reached a major turning point with the passing of time. Association members are now facing six major trends.

The effects of globalization extend beyond the WTO and other trade issues; globalization means that worldwide problems relating to infectious diseases, energy, and the environment also have repercussions within Japan.

If a variety of agricultural products is imported from around the world and goods are transferred on a global scale, infectious diseases also become globalized. When large volumes of goods are imported, various pathogens and chemicals associated with them also flow into the country.

Based on experiences with BSE, avian influenza, foot and mouth, and other diseases, there is a clear risk that we could face real problems with infectious diseases and drug-resistant bacteria. It is also possible that new infectious diseases could emerge in association with global warming and pose a grave threat to the maintenance of livestock farming at current levels. Infectious diseases placing us at risk, such as BSE, avian influenza, and foot and mouth, all stem from the movement of goods. As globalization advances day by day, we need to prepare for the risk of unexpected outbreaks of such diseases.

The rise of the BRIC economies pushes up overall demand for grain. Due to a variety of factors, price hikes extend beyond feed grains to impact secondary ingredients such as soybean meal and fish meal. In the face of fierce international competition over the last fifty years, we have continued to rationalize and worked steadily to resolve each issue as it has arisen. We must continue to build an environment in which we can co-exist and prosper together with domestic producers.

The feed industry depends on the existence of a domestic livestock industry. Since stable development of the domestic livestock industry provides the driving force for the development of the feed industry, our primary obligation is to steadily supply high-quality, reasonably priced, safe and secure feed to Japan’s livestock farmers to ensure that they can continue their business under stable conditions.

More than six years have passed since the outbreak of BSE in September 2001. Researchers have still not determined the source or the route of the infection. Thirty-five beasts were confirmed to have been diagnosed with BSE between the occurrence of the first case in September 2001 and March 2008. Twelve beasts have been diagnosed with BSE since 2006. The absence of panic is most likely due to the speedy implementation of safety measures for meat products and feed within a month of the BSE outbreak and the subsequent spread of a certain sense of security. The public was reassured by the implementation of such measures as blanket testing of all slaughtered cattle and removal of specified-risk materials (SRMs), and most of all because the spread of infection was halted by reinforcing feed regulations. This was the result of a concerted effort by the feed industry to undertake safety measures, including isolation of processing lines and steps to prevent cross-contamination. Area-specific efforts began in July 2003, and by the end of March 2005 all feed production plants nationwide had achieved complete isolation of processing lines. Blocking the BSE cycle, in which meat-and-bone meal acts as the source of infection, made a major contribution to assuring food safety and security.

The Food Safety Basic Law was enacted in 2003 against the backdrop of the BSE problem and successive scandals regarding false labeling of foods. This law designated producers of mixed feed as food production businesses. Having established a direct legal connection between the production of mixed feed and food production, the law obliged feed producers to ensure that safety standards for mixed feed were in line with those for food. Moreover, the chemical concentrations subject to safety regulations were equivalent to just a single drop diluted in a fifty-meter swimming pool. Significant costs and technological improvements were required to introduce regulatory standards including ISO, HACCP, and GMP-plus in order to properly control infinitesimal quantities of chemicals and ensure the safety and security of feed.

The import of feedstuffs is essential to large-volume production of mixed feed, yet Japanese safety standards are not always in accord with those of exporting countries. In order to ensure stable supply of moderately-priced feed, risks and costs need to be managed appropriately while confirming the safety of production processes. Future risk management - including risk communication - will need to respond broadly to the needs of consumers and feed buyers.

Incidents such as false labeling and outbreaks of BSE, avian influenza, and other diseases do more harm than the direct damage caused by infectious diseases. It has become clear that causing distrust and unease on the part of consumers shakes the very foundations of corporate business and puts its future in jeopardy. In this sense, risk management is crucial to the continuation of corporate business. How should the feed industry, which plays a part in supplying food to the public, foster consumer trust?

Japanese schools are starting dietary education lessons to teach children, bearers of the nation’s future, about the significance of food. Having supported the supply of feed to Japan’s livestock industry for the past fifty years, what approaches can we take to today’s children? Considering prospects for the next fifty years, we may be at a point where we can shape Japan’s livestock industry to create a food culture based on the features of Japan’s terrain and climate.

Faced with waves of change that continue to advance at considerable speed, we are already setting a new course. Responding appropriately to domestic and international circumstances, JAFMA’s mission is to play a role in the stable supply of livestock products through the steady supply of feed to livestock farms. Bearing in mind the scope and importance of the mission entrusted to us, all members of the association will continue our efforts to contribute to the advancement of Japan’s livestock industry.