July 4, 2008

Japan imported 38,261 tonnes of beef in May, down 11 percent on-year, reflecting a weakening beef demand as consumers struggle to cope with food inflation, according to the Japanese Ministry of Finance.

Beef imports from Australia dropped 15 percent on-year to 30,175 tonnes as shipments of chilled and frozen beef declined. Chilled beef shipments dropped 16 percent to 13,899 tonnes while frozen beef shipments fell 14 percent to 16,277 tonnes.

Beef imports from the US reached 3,973 tonnes, the second highest since the resumption of shipments in July 2006, with shipping volume spurred by the weakening US dollar. US chilled products accounted for 77 percent or 3,076 tonnes of total beef imported, up from 57 percent a year ago, which spells the growing presence of US beef in the Japanese retail sector.

US beef have the potential to grow even further in the Japanese market due to combined factors such as US dollar and Japanese yen exchange rate, easing concerns on safety among Japanese consumers, and rising production of US beef from cattle under 21 months of age.