June 16, 2009

Japan's imported beef consumption strongly recovered in April, posting a 14 percent increase on-year to 46,316 tonnes (boneless equivalent), according to Japan's Agriculture and Livestock Industries Corporation (ALIC).

The rise was largely due to lower import costs and the subsequent price reduction at retail, combined with steady performance by the fast food sector.

The reduction in import costs was assisted by the weaker A$ (compared to a year ago). Average retail prices of Australian beef during April declined by 5 percent to 28 percent year-on-year (beef priced on special). This, as well as consumers dining home instead of of eating out, assisted sales of Australian beef at retail outlets, with point of sales data indicating a 12 percent growth in retail purchase volumes in April (retail prices and POS data by ALIC). In addition, the fast food sector - a major user of Australian frozen beef - recorded a 5 percent increase in sales during the month.

Approximately 80 percent of imported beef in Japan is sourced from Australia, followed by the US (10 percent).

Consumption of local beef grew in April, by 1 percent from last April to 32,137 tonnes, bringing the total consumption in Japan to 78,453 tonnes - up 8 percent year-on-year, and the highest monthly volume since December 2007.