May 26, 2006

Japan running low on beef stocks

With uncertainties still hanging over whether US beef would be allowed come June, beef stocks are running low in Japan, according to Meat and Livestock Australia (MLA), an Australian beef marketing company.

This was despite record shipments from Australia in March, the MLA said. 

Low stocks may mean that Japanese buyers would be limited to Australian products over the next few months, even up to the peak-demand period during the Obon holiday in early August.

Stocks for March this year (68,746 tonnes) were nearly half of the figure from the same month in the year before the US beef ban took effect (141,744 tonnes).

March consumption level was at 68,078 tonnes, meaning that Japan would have consumed nearly all its stocks. Japan typically has one to three months beef stock before the US beef ban.

For now, high prices resulting from low stocks is holding beef consumption levels down. Consumption levels would be elevated should US beef return to Japan as expected in July, said MLA.