January 23, 2006

Japan's ban on US beef worries Australian marketer
 

The reinstatement of a Japanese import ban on US beef could spark a downturn in demand for Australian products, Hugh Amoyal, head of international marketing at marketing concern Meat & Livestock Australia Ltd., said Monday.

Japan halted US beef imports last week after inspectors found spinal products in a shipment of US veal, contravening an agreement between the two nations finalised only last month covering a partial resumption of imports.

"The bad news here is that Japanese consumers are already quite sensitive about food safety in beef, and the last thing we need is another food safety scare on what is, you know, a safe product," Amoyal said in a report on Australian Broadcasting Corp. radio.

"So we're all hoping it gets resolved fairly quickly and we can resume trade and get back to normalcy as soon as possible," he added.

Japanese buyers turned to Australian suppliers to fill a beef supply shortfall after banning imports from the US in December 2003, when a case of bovine spongiform encephalopathy, or mad cow disease, was discovered in the US.

Australia is the second biggest global exporter of beef after Brazil, with export value last fiscal year ending Jun 30, 2005, surging 24 percent to A$4.88 billion (US$3.67 billion).

Demand for Australian beef has been strong since early 2004, mostly due to a lack of competition from the US in Japan and South Korea.

Japan has ordered inspections of all US beef imported in the past month, a top official said Monday, calling for a full explanation of the US violation of the bilateral beef pact before the fresh import ban can be lifted.