Japan foreign aid to diversify grain supply

Producers in Southeast Asia and South America may receive financial or technological assistance to expand grain output, Wakabayashi said in an interview Monday in Tokyo. Japan is also considering aid for trading infrastructure, such as storage and port facilities, he said.

Japan buys more than 90 percent of its corn, 80 percent of its soybeans and more than half its wheat from the U.S. Prices of the grains in Chicago rose to records this week on signs global demand will outstrip supply, increasing costs for food companies including Yamazaki Baking Co. Ltd. and Kirin Holdings Co. Ltd.

“I don’t think the measures proposed by the ministry are sufficient for food security,” Akio Shibata, director at Marubeni Research Institute said by phone Tuesday. “The government should seek assurances from exporting countries under free-trade agreements.”

Corn, which reached a record US$5.55 a bushel on the Chicago Board of Trade Monday, has risen 17 percent so far this year. Soybeans, 19 percent higher this year, reached a record US$14.855 a bushel yesterday. Wheat, up 37 percent this year, breached US$12 a bushel for the first time Tuesday.

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