Animal Health

November 2001 

A second confirmed case of mad cow disease has fueled fears among beef-related businesses, such as restaurant operators and meat packers. Aeon Co.is also worried that its sales recovery will falter. The company, which saw beef sales dive to 30% of year-earlier levels, recently managed to bring beef sales to 50% of the previous year's level by displaying inspection certificates. Mitsukoshi Ltd.'s department store in Tokyo's Nihonbashi shopping area says that another report of the bovine disease will surely affect sales of the year-end gifts, since high-quality beef is one of the most favored items. Meat packers are also very concerned. Kenichi Ito, president of Itoham Foods Inc. says it is very disappointing that the report came just as beef sales were picking up. The meat processor expects beef sales in the second half of the business year to fall 25% year on year, as beef-related gift items are expected to sell poorly. Although Nippon Meat Packers Inc. says sales of poultry and pork are showing a 20-30% rise; this is not enough to offset declining beef sales. Prima Meat Packers Ltd. said that if a second case of mad cow disease is being reported, sluggish beef consumption may well turn into a drawn-out phenomenon. Reflecting such concerns, prices of beef-related stocks fell. Meanwhile, prices of shares in firms offering alternatives to beef, such as Nichiro Corp., Nippon Suisan Kaisha Ltd. and Kibun Food Chemifa Co., shot up. (November 21, the Nihon Keizai Shimbun)