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Japan Earthquake to Impact Grain Trade

Japan Earthquake to Impact Grain Trade

U.S. Grains Council suggests damage to facilities could be short-term trouble.

As reports funnel in after the massive earthquake that hit northeast Japan over night, the industry is getting a better idea of how this may impact the grain trade. The U.S. Grains Council reports that initial reports show that significant damage to many of Japan's ag facilities may have resulted from the earthquake and subsequent tsunami.

In a press statement, Tommy Hamamoto, USGC director in Japan, says: "Some ports in northern Japan, Kushiro, Hachinohe, Ishinomaki and Kashima, were hit by the tsunami. We’ve heard some feed mills and livestock operations have also been damaged by the tsunami. Those facilities were not severely damaged by the earthquake itself but were affected by the tsunami. It is too early to tell what effect this will have on Japan’s agricultural sector, but it could be of significance."

Adds USGC President and CEO Tom Dorr: "We extend our most heartfelt wishes to our loyal customers, staff and all the people of Japan in this time of crisis. The Council values our 50 plus year agricultural partnership with the people of Japan and stand ready to work side-by-side as you respond and work through recovery. Count on our partnership and friendship now as you always have."

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