Eastern Japan earthquake/Food sector

Alert: Spike in demand for instant noodles, Kirin plant a worry

Conclusion — We estimate that the earthquake-afflicted prefectures of Iwate, Miyagi, and Fukushima account for 5% of nationwide food consumption. Among plants, we understand Kirin’s Sendai plant has been badly damaged. There has been a spike demand for instant noodles, although we expect it to be only temporary.

Plants — At Kirin’s Sendai plant, four storage tanks were damaged and there are no immediate prospects for a resumption of operations. Kagome expects its Nasu plant to take a month or more to get back to normal. There are no reports of major damage at Asahi Breweries, Ajinomoto, or Nissin Foods Holdings. We understand Toyo Suisan's Sanriku aquaculture facilities were damaged, but there was no damage to its noodle facilities. Yakult reports damage to some facilities at its plants in Iwate and Fukushima. JT has suffered from a leak and other damage at its Kanto plant but looks to be able to offset this with increased production at its Tokai plant.
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