June 18, 2007

 

Tyson gets clearance from Japan anew for beef exports

 

 

US meat processor Tyson Foods said it has gained approval by Japan to resume its beef exports which was halted in February due to shipment problems.

 

Based on its favourable inspections in Tyson's Lexington, Nebraska plant and other 27 others in the US, Tokyo has decided to stop inspecting all beef imports and return to a sampling system, provided US producers obey its strict age restrictions. 

 

One industry economist said the Japanese decision to halt full meat inspections would remove a major "bottleneck" that has hampered trade growth with the Asian nation.

 

Tyson's Lexington processing plant in February sent 95 pounds of beef to Japan that didn't comply with trade regulations, prompting a ban on that plant and a review of 28 US beef plants by Japan.

 

Tyson spokesman Gary Mickelson confirmed Wednesday that Lexington received the Japanese nod to continue its exports after enhancing its verification system for beef exports to the Asian nation.

 

Despite a positive ruling by the World Organization for Animal Health- or OIE - in May that declared US beef a "controlled risk" for mad-cow disease, Tokyo said it had no immediate plans to ease restrictions on beef imports from the US.

 

US farm officials said they ask Japan to change its policy after Tokyo's lifting on all its inspections. Gregg Doud, chief economist for the National Cattlemen's Beef Association in Washington, said Tokyo's suspension of 100 percent inspections could double beef exports to Japan in the coming months.

 

Since calving is a seasonable process, there will be more young beef to ship to Japan in August, Doud said. In turn, Japanese retailers should begin buying significant tonnage in the belief that the US will fill the orders, he said.

 

Tyson confirmed Wednesday that the seasonal supply of age-verified beef meeting the strict requirements has already improved export volumes to Japan.

 

Still, Doud said it would be difficult for the US to increase trade to more than 25 percent of its previous level without tearing down more trade barriers.

 

Beef cuts, veal and variety beef sales dropped from US$1.3 billion in 2003 to US$2.9 million the next year.

 

Johanns also announced last week that Malaysia had accepted the World Organization for Animal Health standards and will begin taking US beef of all kinds, including product with bones.

 

The US sold US$1.92 million of beef products to Malaysia in 2003 but just US$247,000 the next year.

 

Total US beef trade with the world is up about 13 percent for the first four months of 2007, the US Department of Agriculture reports.

 

Shares of Tyson stock fell in early trading Wednesday but rebounded in the afternoon. Shares rose 28 cents or 1.29 percent to finish at US$21.94 on the New York Stock Exchange.