The third case of mad cow disease hit Japanese beef and milk stocks

Lead: Tokyo, Dec 3 (Reuters) - Japan's third case of mad cow disease hit hard on the beef industry on Monday, sending prices of beef and milk related stocks plummeting The catering sector fell in the morning, with Yoshino D & C, Japan's largest beef noodle fast-food company, down 3.06 percentage points to 190000 yen Japanese health officials confirmed on Sunday that a cow raised in the northern city of Saiyu, Tokyo, had tested positive for BSE, becoming the third case of BSE in Japan The disease, which changes in human brain tissue variables, has killed more than 100 people in Europe The first case of BSE in Japan was confirmed on September 22 Consumers ignored the government's guarantee for the safety of Japanese beef and turned to other meats Matsuya food, the beef noodle chain, was a major competitor of Yoshino D & C, whose shares fell 2.19 percentage points to 2230 yen, while zensho, the third largest, lost 3.56 percentage points to 1449 yen McDonald's shares fell 2.77 percent to 3510 yen, while rein international, the barbecue beef chain, fell 2.35 percent to 2.08 million yen The benchmark 225 average stock index fell 1.94 percentage points, mainly due to the drag of the financial sector The biggest loser was Japan's No 3 meat processor, No 1 meat food company, whose shares fell 14.52 percentage points to y53 Marudai food shares fell 3.28 percent to 118 yen 3y4 on Monday, Moody's Investor Services placed Marudai's baa3 issuance rating in a retrial of a possible downgrade as a third case of mad cow disease could further affect consumption of beef products Milk related stocks also showed a downward trend Previously, investigators looked for possible causes of disease in a milk substitute made from skimmed milk powder and animal fat from pigs and cattle that could be used to raise three sick cows 3y4 cautious investors cut Meiji's shares by 2.42 percentage points to 363 yen, while Baixue, Japan's largest dairy producer, fell 1.76 percentage points to 223 yen 3y4