March 2002


A• Walker and Kurosaki visit in Kobe with Nakanishi-san of Nakanishi Farms and Sotoike-san of Teishin to discuss post BSE market situation in Japan.  Subsequent visits in Tokyo with Echigo Farms and retired Tokyo meat market executives.  

Walker and Kurosaki with Nakanishi-san and Sotoike-san at Seishin-Hanten Restaurant.
(click pic to enlarge)

Kurosaki and Walker with Echigo Farms and previous T.M.M Executives at Kocho Restaurant.
(click pic to enlarge)

 

 

B• Asahi Shinbun article leads to exposure of large Japanese companies or associations involved in beef substitution scandals. These include:
 

Company Revenue H.O. Location Offence
Snow/Brand Food ¥92 billion Hokkaido False country and prefecture origin
Star-Zen ¥200 billion Tokyo False country of origin
Zen-Nou ¥100 billion estimate Saitama False country of origin
Takizawa-Ham ¥100 billion estimate Tochigi Unknown
Hiruma (bankrupted) Unknown Osaka False labelling of school lunches with General Wagyu as Kobe Wagyu

 

The following articles are reproduced from Japan newspaper websites:

Firm searched in beef-label scandal

The Japan Times: Feb. 17, 2002
(C) All rights reserved

TAKAMATSU, Kagawa Pref. (Kyodo) The Ministry of Agriculture, Forestry and Fisheries on Saturday inspected the head office of meat sales company Kawai in Takamatsu, Kagawa Prefecture, in connection with a beef-labelling scandal.

Officials from the farm ministry's Chugoku-Shikoku Regional Agricultural Administration Office said their inspection of the company for its alleged use of imported U.S. beef in assorted beef packages labelled as Japanese beef was conducted in line with the Japanese agricultural standards law.

The Kagawa Prefectural Government said it is to open a full-scale investigation into the scandal based on material gathered from Friday's inspection of Kawai facilities in the town of Kokubunji, Kagawa and other locations, as well as documents related to beef sales.

The prefectural government said it is also considering inspecting a number of locations again, including Kawai's head office.

Prefectural government officials have said they discovered Kawai had falsely labelled beef products after the agricultural administration office in western Japan notified them in July about suspicions concerning the meat.

The latest meat-fraud case follows the revelation last month that Snow Brand Foods Co. repackaged Australian beef as domestic beef to claim subsidies in a government buyback scheme connected to mad cow disease. The scandal has rocked public confidence in Japan's food producers.

http://www.japantimes.co.jp/cgi-bin/getarticle.pl5?nn20020217q4.htm

 

Meat packer denies mislabeling pork products

The Japan Times: March 1, 2002
(C) All rights reserved

SAGA (Kyodo) The head of a local packaging facility for Starzen Co., a major dealer in domestic and imported meat, denied allegations Thursday that he ordered the mislabelling of the company's pork products.

"I did not know about the forgery," Kazuhiro Imaizumi said at a press conference. "I think it is being blamed on me because some workers said they did it on orders from the centre chief during inspections by the farm ministry conducted from the 24th to the 26th (of February)."

Imaizumi's comments contradict Starzen officials who said the company sold pork from inexpensive white pigs as that of black pigs, and that Imaizumi gave the orders to mislabel it.

Imaizumi said the packaging facility would look into the mislabelling allegations closely, adding that there have also been cases in which incorrect labels were used by mistake.

Starzen Managing Director Ritsu Akiyama said at a press conference Wednesday that the head office never issued instructions for the mislabelling. Akiyama said the head office believes the order came from the chief of the packing centre.

Starzen said Wednesday it sold pathogen-free pork from white pigs as pork from black pigs from June 2000 to around December 2001.

The company said it is also investigating another allegation that it may have sold, from around July 2000 to October 2001, Holstein meat as high-quality beef from cattle raised in Saga.

The pork and beef products in question were sold at 16 supermarket stores in Kyushu after being mislabelled at the firm's Saga facility, it said.

The mislabelling case was detected in farm ministry inspections conducted after a series of meat-linked scandals broke out involving Snow Brand Foods Co.

Prime Minister Junichiro Koizumi expressed regret over the case.

"The case is unfortunate, as it damages consumers' trust," Koizumi said at his official residence. "The farm ministry needs to investigate the allegation."

The farm ministry's branch in Kyushu conducted an on-the-spot inspection at the Saga facility Thursday.

Kyushu-Jusco Co., which operates supermarkets in the Kyushu area, said Thursday it has withdrawn Starzen products from its stores and suspended purchases from the meat dealer.

A total of 16 of its outlets in the Kyushu area were affected because they purchased their meat exclusively from Starzen, the company said.

Starzen, based in Tokyo, is listed on the first section of the Tokyo Stock Exchange.

http://www.japantimes.co.jp/cgi-bin/getarticle.pl5?nn20020301b1.htm

 

Snow Brand may link up with rivals

The Japan Times: March 3, 2002
(C) All rights reserved

Snow Brand Milk Products Co., the parent company of scandal-hit Snow Brand Foods Co., is considering spinning off its milk products division and merging it with those of the National Federation of Agricultural Cooperative Associations (Zen-Noh) and two other entities, sources close to the talks said Saturday.

The two other parties with close ties to thousands of Japanese farm co-ops are the National Federation of Dairy Co-cooperative Associations (Zenrakuren) and Kyodo Milk Industry Co., a major maker of dairy products known for its Meito brand, the sources said.

Snow Brand Milk, Zen-Noh, Zenrakuren and Kyodo Milk Industry are considering three integration scenarios.

The first is based on a proposal to merge their milk products sections and place the resultant entity under a holding company, the sources said.

The parties are also contemplating merging their respective milk products divisions to make them into a new, independent company without a holding company structure, they added.

The third proposal calls for Snow Brand Milk and Zen-Noh to purchase the milk products divisions of Zenrakuren and Kyodo Milk Industry with an eye to integrating the milk products divisions of the four parties into a new company, they said.

Snow Brand Milk is trying to revive its business after the double shock of a string of scandals involving itself and Snow Brand Foods, which will soon be disbanded due to its inability to rehabilitate itself in the wake of a plunge in sales induced by a beef mislabeling scandal.

Snow Brand Milk took the initial blow from a food-poisoning outbreak in the summer of 2000.

The poisoning incident made some 15,000 people sick after they consumed tainted Snow Brand Milk products, which the company was forced to recall.

Snow Brand Milk later acknowledged that its dairy products were tainted with a toxin produced by staphylococcus aureus bacteria. Sales at Snow Brand Milk have slumped since the scandal.

Industry sources said Snow Brand Milk, which has a large processed-food division, wants to facilitate talks with other companies on concluding a capital tieup agreement by spinning off the milk products division.

http://www.japantimes.co.jp/cgi-bin/getarticle.pl5?nn20020303a9.htm

 

 

 

C• Boat shipment in March results in significant savings over air shipment.

Previously, calves left Westholme at 8.00am on the day of shipment and arrived in Japan quarantine 24 hours later.  This resulted in minimum stress for calves and body weight reductions of approx 5% which was quickly recovered.

Boat shipment obviously takes longer and depending on the weather conditions, can result in stress and body weight loss of up to 40kg per head.  To overcome this, Westholme has adjusted its feed formula through the 3 feeding stages before pre-embarkation quarantine (PEQ).  These include:

bullet• Pre-weening creep feeding
bullet• Post weaning supplementary feed
bullet• Feed barn diet

By coordinating the feed formula components during these three stages with the feed supplied during PEQ, and during the sea voyage, we can minimise weight loss.  In addition, pre PEQ feed barn training adjusts calves to conditions experienced in PEQ and on the boat, thus minimising stress.


Westholme calves at Harrow Feedlot Toowoomba for PEQ prior to shipment to Osaka

 

Calves in PEQ


 

Calves in PEQ

 

Boat used for shipment

 

Calves on board

 


D• Kato-san (Director) and Nakazawa-san (General Manager) of Kato Farms New Zealand, visit Westholme Tarana.

Kata-san and Nakazawa-san with Mark Ebert and Rod Barrett of Westholme at Tarana property.

 

 


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