January 16, 2004

 

 

Australia Beef Prices To Japan Remain High

 

Prices for Australian beef exports to Japan remain substantially higher than those in the pre-mad cow disease period, marketing concern Meat & Livestock Australia Ltd. reported Friday.

 

Beef has been in short supply in Japan since the government banned the import of U.S. beef after the discovery in the U.S. of the BSE case, announced

Dec. 23.

 

In total, 30 countries have closed their doors to U.S. beef, according to MLA.

 

But while demand in some U.S. export markets has fallen along with supply, such as in South Korea, this hasn't been the case in Japan.

 

"Eager to fill its supply needs, the Japanese government has dispatched fact-finding missions to Australia and New Zealand to evaluate the ability to increase exports of beef to Japan," MLA said.

 

In the meantime however, the cost of Australian beef in Japan is surging.

 

Prices in Japan for Australian chilled grassfed fullsets were quoted this week at US$2.63 a pound, including carriage and freight, up 45% from the US$1.81/pound Dec. 19.

 

The estimated FOB price for this product in Australia also rose substantially, hitting A$7.11 per kilogram, up from A$4.97/kg free alongside Dec. 19.

 

MLA also reported that spot prices for Australian chilled grassfed fullsets at Japan's Kanto wholesale market were quoted Friday at Y1,050/kg, up from Y1,035/kg last week and Y685/kg Dec. 19. A fullset comprises about a dozen beef cuts.

 

Australia, which exported beef worth A$3.75 billion last fiscal year, usually competes with the U.S. to supply Japan and other markets.