Japan will have to increase its agricultural imports

A special report has just been released by Food & Agribusiness Division of Rabobank on the consequences of the earthquake and tsunami on the agriculture and food industry of Japan.

 Rabobank is a leading provider of financial services for the agricultural industry. Its unit, Rabo Agrifinance, provides proprietary information to agribusiness in the United States and has recently developed a report entitled "Earthquake in Japan : Magnitude of the impact on food and agriculture. "

The consequences could be disastrous for the entire agricultural industry, where self-sufficiency is already low. Although the effects of nuclear accidents are not fully known, exports will decrease by lack of supply, while imports will sharply rise.

 The report notes that 25% of the production of pork, 18% of beef production and 22% of the production of poultry come from affected areas. The earthquake and tsunami destroyed farms and orchards, the radiation has affected fruits and vegetables produced locally. Consequently, imports of vegetables and fruit should grow in the coming months.

Source: Bloomberg, western farm