February 4, 2004

US Beef Import Ban Pushes Japanese Beef Prices Up

The ban on U.S. beef imports has started affecting Japanese consumers as retailers have begun passing on higher wholesale prices, the Nihon Keizai Shimbun reported in its Tuesday morning edition.

Since the first U.S. case of mad cow disease was reported around six weeks ago, retail prices of imported beef and domestic beef have increased 6.1% and 2.4%, respectively, the financial daily reported.

According to an Agriculture Ministry survey of 4,800 retailers, the national average retail price of imported refrigerated beef chuck, rib and loin meat stood at Y364 per 100 grams in the last week of January. This translates into three consecutive weeks of rises and the highest level since the survey began in August 2003, the report said.

The survey also found that the retailers expect both imported and domestic beef to become costlier in February.

Wholesale prices have also been climbing for both imported and domestic beef. The benchmark Australian beef changed hands at Y995 per kilogram Monday in Tokyo - up Y385, or 63.1%, from a year earlier.

The average wholesale price of domestic dairy cow beef in the meat section of the Tokyo Metropolitan Central Wholesale Market climbed Y165, or 28.6%, from a year earlier to Y741 the same day.

Despite the strong rises so far, no further sharp price increases are expected because restaurant chain operators and supermarkets have finished their round of active buying to stock up.

U.S. beef is no longer traded in Japan since most dealers have depleted their inventories.