JAPAN – Meiji Dairies emerged on Tuesday as the second Japanese dairy company to suffer heavily from the country’s BSE scare.

Meiji saw net profit for the year to 31 March plummet 45.4% on last year to 2 billion yen (17.3 million euro). The company said it was also hit by product prices falling in line with deflation and increased competition.

It added that it expects profit to rebound this year to 35 million euro through cost cutting measures and from maintaining current prices.

The news comes after Snow Brand Milk subsidiary Snow Brand Foods was rocked by a beef labelling scam earlier this year. Japan’s first BSE case was found in 2001.

More than 50% of Meiji sales come from liquid milk. It also produces infant formula, yogurt, ice cream, and dairy-based drinks. These include the Vaam health drink, which contains amino acids found in hornet saliva.