In April 2023, Japan's Ministry of Agriculture, Forestry, and Fisheries (MAFF) implemented a special measure under the Compound Feed Price Stabilisation System to augment feed compensation payments to livestock, poultry, and swine producers, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.

This measure changed a formula that was minimising feed support payments when feed costs remained high beyond a one-year period.

MAFF and industry jointly run a two-part Compound Feed Price Stabilization System which consists of a “regular compensation program,” and a “supplemental compensation program.” When the average import price of raw materials, including corn, sorghum, soybean meal, barley, and wheat, in a particular quarter exceeds the average import price of raw materials of the previous one year, the regular compensation fund pays livestock, poultry, and swine producers who participate in the system the difference up to 115% of the standard price. 

Producers and feed mills contribute 600 Yen ($4.3)/MT1 and 1,200 Yen ($8.6)/MT respectively to fund the regular compensation program. When the average import price of ingredients in a particular quarter exceeds 115% of the standard price, a secondary fund, the “supplemental compensation” fund, makes up the difference to producers. 

Compound feed mills and MAFF each contribute 50% to the supplementary compensation fund.