May 26, 2008

Japan's imported beef prices surge

Japan's average retail price of imported beef hit a record of JPY4,020 (US$38.91) per kilogramme during the second week of May due to the strong Australian dollar and high grain prices.

The price hike was the highest since Japan's Ministry of Agriculture, Forestry and Fisheries commenced the price survey in August 2003.

In 2007, the average retail price of imported beef hovered around JPY3,700 to JPY3,800 /kg during 2007.

However, it started to go up in January 2008, as food price increases became more common in the market.

In April, imported beef prices averaged JPY3,950/kg, up 7 percent on last year.

Subsequently, the May record of JPY4,020/kg was an increase of 10 percent compared with the same week in 2007.

Meanwhile, Japanese domestic beef values were stable at JPY6,990/kg in April as higher supplies from domestic producers resulted in soft wholesale prices.

Australia supplies over 80 percent of imported beef to Japan.

US$1 = JPY103.30 as of May 26, 2008