New Japanese Feed Labeling System Expected to be More Flexible, Competitive

Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) has proposed revisions to its feed labeling regulations to allow feed manufacturers greater flexibility to respond to changes in the cost of ingredients.

Under the old feed labeling regulations, feed millers might be hesitantsolely because of the cost of relabelingto shift from corn to wheat or domestic rice in response to price changes. The new regulations will make it easier to change ingredients and will make Japanese feed millers more price-driven. In the end, Japanese consumers will be the big winners.

These labeling regulations focus on consistency of ingredients to ensure quality and protect livestock producers. Standards are very high and, before the revisions, lacked flexibility that sometimes added substantial costs.

As global feed markets became more competitive, and as feed ingredients became increasingly diversified by type and origin, these regulations became increasingly burdensome. For example, a Japanese feed manufacturer would be handicapped by costly relabeling requirements if he actively pursued lowest-cost formulations in an ever-changing and competitive marketplace.   

“The new regulations are a long-awaited and are a desirable deregulation,” said Tommy Hamamoto, U.S. Grains Council director in Japan. “Feed manufacturers will be allowed a wider range in the percentage composition of various ingredients. For example, a 4 percent label for an ingredient might allow a 2 to 6 percent range in the product. 

“Quality will be maintained, but it will be possible to react to rapidly changing ingredient pricing without triggering costly relabeling requirements. In addition, tailored feed compound products will be exempt from the labeling, which will also reduce costs.”

The revised regulations are scheduled to be introduced in April 2015. The Council believes this revision is favorable for introducing new ingredients into rations and will continue to educate end-users in Japan about how these revisions impact them.