March 28, 2006

Japanese eschew US beef after a two year absence
 

Whoever said absence makes the heart grow fonder obviously was not referring to Japan's relationship with US beef. After a two-year absence in Japan, many Japanese are ditching US beef and succumbing to the overtures of million-dollar advertising campaigns by the Australian beef industry.

The re-emergence of mad cow disease in the US and the discovery of banned parts in shipments at a time when Japanese markets were about to open up to US beef again have led a frustrated Japan to believe Australian beef is far safer than American beef.

Australian beef was once seen as tough and tasteless compared to its more refined US counterpart, but now that Australia is feeding its cattle grain instead of grass to improve its meat quality, it is seen in a different light.

Japan was once a US$1.4 billion export market for American beef. Like a contrite suitor, America is desperately appealing to Japan to re-open its markets to US beef while Japan has snubbed it by saying that it has yet to finish its inquiry into the safety of its plant operations. Still, Japan is sending signals it may re-open its arms to American beef again if America can provide a satisfactory explanation. The US is sending a technical team to Japan next week to answer concerns, hoping that their trading relationship would resume as soon as possible.

For many Japanese, the fact that Australia has never had mad cow disease is certainly an attraction. Australia, being oceans apart from the Americas and Europe, can also lay claim to the fact that its herd is uncontaminated.

Australia is also embarking on a charm offensive to retain the majority share of the market that the US exited in 2003, holding seminars and extensive campaigns lauding the benefits of Australian beef.