Baking&Snack - April 2011 - 13

NEWS

Japan’s food sector shaken but little damaged by quake
Considering the immensity of the earthquake and tsunami that hit Japan on March 11, the country’s basic food processing industry sustained little damage. The exception, of course, centered in the northeast section of the country, where the devastation from the twin natural disasters, along with severe damage to a nuclear power plant, have either shut down or severely interrupted operations at several plants in an area of Japan that is not heavily populated. Most of Japan’s food industry, including flour mills and baking plants, is located to serve the Tokyo Bay area as well as the southern part of the nation, regions where most of the population is concentrated. Operating difficulties in areas not directly affected by the earthquake and severe flooding were primarily the result of periodic power interruptions. Because of the breakdown at the Fukushima Daiichi nuclear power plant, electrical supplies were being rationed through rolling blackouts. Tokyo Electric Power Co. scheduled blackouts of three to four hours per day in different areas. At the same time, major factories such as the largest flour mills had their own power supplies and were not affected by the blackouts. In turn, the rolling blackouts disrupted transportation in a country that relies heavily on rail services to move people. Commuting problems have been severe in many areas, but the major food companies assert that they have had little or no production interruptions because employees could not reach plants. As a nation that relies primarily on imported wheat to supply its flour mills, ensuring an adequate supply for milling received high priority. A number of the nation’s largest flour mills are located adjoining port grain elevators equipped to unload oceangoing vessels that deliver wheat. Except for the port elevators in the northeast coastal area directly affected by the earthquake and tsunami, delivery of wheat to mills has proceeded without interruption. While flour and food products are mainly delivered by truck and, thus, are not affected by the erratic train service, shortages of gasoline caused delays and difficulties. This was a problem greatly accentuated by the surge in demand for grain-based foods like bread and instant noodles that reflected the surge in demand by consumers anxious to establish home supplies. This rapid expansion in business came unexpectedly and has eased only a bit in response to governmental reassurances. In an exchange with the headquarters of the Nisshin Seifun Group, which is Japan’s largest flour milling company with 10 flour mills, Sosland Publishing Co. learned that none of the company’s employees were lost or injured by the massive earthquake and tsunami. Crediting the company’s Business Continuity Plan, Nisshin said it organized a task force charged with emergency disaster control right after the earthquake struck. “With regard to our production facilities, our flour mill in Hakodate, Hokkaido [northwest of Sendai], stopped its operations due to floods by the tsunami, and we are putting our repair efforts to resuming its operation as early as possible,” Nisshin said. The company indicated that some other factories “were slightly damaged and stopped their operations temporarily, but they have recovered already.” The Nisshin mills where production temporarily was halted by the earthquake were Tsurumi, Chiba and Tatebayshi. All have resumed full-scale operations. A Showa Sangyo flour mill in the region hardest hit by the disaster was shut down for a week, but was operational again as of press time. Several area port elevators also were closed for a time, but this was not seen as a major source of imported wheat. Nisshin said that all of its plants have continued shipments without interruption. At the same time, it acknowledged difficulties in supplying product “to meet the unexpected demands not only in the area damaged by the earthquake and tsunami but also in the Tokyo metropolitan area.” The company has a sales office in Sendai, a city described as the social and economic center of northern Japan and hard hit by the earthquake and subsequent flooding. A Nisshin sales office and the company’s main distribution center in Sendai was damaged. “We are taking necessary steps for restoration, and we are trying our best to supply products to the market,” the company said, adding that it expected complete recovery within a few days. — L. Joshua Sosland editor, Milling & Baking News

Donor honor roll
Members of the baking community worldwide continue to show their support for those most affected by the devastation in Japan. Among those contributing to relief efforts are:

Archer Daniels Midland Co.,
Decatur, IL, which donated $250,000 to the American Red Cross and pledged to match all employee contributions of $25 or more.

Cargill,
Minneapolis, MN, which gave $250,000 to Second Harvest Japan, a Tokyo-based food bank that is delivering truckloads of food and other necessities to survivors of the earthquake and tsunami.

Kellogg Co.,
Battle Creek, MI, which contributed equal parts cash and products to the Red Cross totaling $500,000.

Kraft Foods, Inc.,
Northfield, IL, which provided $200,000 to the Red Cross and committed to donating food and funds to the country’s long-term recovery efforts. The Kraft Foods Foundation will also match any employee donations to the Red Cross.

McCormick & Co., Inc.,
Hunt Valley, MD, which is conducting an employee donation program to add to the corporate donation of $50,000 to the Red Cross.

McDonald’s Corp.,
Oak Brook, IL, which gave $2 million to the International Foundation of the Red Cross.

PepsiCo,
Purchase, NY, which committed $1.5 million to nonprofit humanitarian and business partners including the Red Cross, Save the Children, the World Food Programme and Aidmatrix.

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April 2011 / BAKING & SNACK

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Baking&Snack - April 2011

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