March 3, 2008

Japan reports stable beef output in 2007

Japan's beef production was stable at 352,787 tonnes last year, up 1 percent on-year, with Wagyu beef accounting for 39 percent of the total output.

Wagyu beef totaled 136,122 tonnes, while F1 production was 25 percent of the total at 87,497 tonnes, Japan's Agriculture & Livestock Industries Corporation (ALIC) said.

Despite the country's low demand for beef since 2004, Wagyu production last year increased 3 percent compared to 2003 figures, with consumers favoring the domestic beef with high marbling.

Wagyu beef carcass prices fluctuated during 2007, before settling in December at JPY2,294/kg (US$22), slightly higher than a year ago. The average yearly price was down 2 percent from 2006, to JPY2,142 /kg (US$21).

Meanwhile, dairy beef production in 2007 declined by 3 percent from 2003. Year-on-year carcass prices also eased, with the B2 grade steers averaging JPY759/kg, (US$7), down 13 percent from 2006.

Japan's Wagyu beef production is expected to dominate the market in 2008, both in volume and value.

The dairy portion will see a marginal decline, an industry observer said.