January 28, 2004

Australia Ready To Up Beef Supply To Asia 

Australia is prepared to supply Asia an additional 200,000 tons of beef if the meat shortage situation persists, John McCarthy, Australia's ambassador to Japan, said at a press meeting in Tokyo.

Demand for Australian beef is rising as Japanese companies search for an alternative to U.S. beef. Japan, which relies on the U.S. for about 46 percent of its beef, banned imports of U.S. beef after a case of mad cow disease, also known as bovine spongiform encephalopathy, was found in Washington state on December 23.

The price of Australian beef in Japan rose 45 percent to 1,110 yen ($10) per kilogram this week, compared with prices prior to the ban on U.S. beef in December, according to Meat and Livestock Australia.

Australia already provides Japan with about 49 percent of its beef, according to the Japan Food Service Association. Beef importers such as Japan's second-largest trading company Mitsui & Co. are turning to Australia to help meet beef demand, said company spokeswoman Kaoru Shiraki. Tokyo-based Mitsui imports about 25,000 tons of beef from the U.S. annually, she said.

"We're not sure if we can completely make up the lost volume by importing from Australia because we have to ensure we are getting the same type and quality of meat that we were importing before," Shiraki said.