July 18, 2007

 

US beef exports to Japan to reach half of pre-ban levels next year

 

 

US beef exports to Japan could rise to 150,000 tonnes next year, more than half its pre-ban volume, if current tight restrictions could be removed this year, Philip Seng, president and CEO of the US Meat Export Federation said on Tuesday (Jul 17).

 

The US exported 240,000 tonnes of beef to Japan in 2003.

 

The US is aiming to regain its position as a top beef supplier to Japan after being shut out of the Japanese market for nearly two-and-a half years. Seng said US beef exports might return to their pre-ban levels in two to three years.

 

Monthly US beef exports to Japan have remained at about 10 percent of their pre-ban level, partly due to the restriction that all US beef must come from cattle less than 20 months old and must be age verified.

 

Younger animals are less likely to develop mad cow disease.

 

Most industry officials expect the age restrictions to be lifted by the end of this year.

 

Seng estimates that US beef sales to Japan would reach 40,000 tonnes this year. This is in sharp contrast to Australian beef exports to Japan, which reached 36,000 tonnes in April alone.

 

More US meat packing plants are now allowed to export to Japan compared to the period when the ban was just lifted, which would contribute to increased sales. About 39 US plants are authorised to export beef to Japan, compared to the 50-60 meat packing plants that used to supply beef to Japan before the ban.

 

Seng said the beef trade talks had often become a political issue, but Japan should not bow to either inside or outside pressure.

 

Wholesale prices of beef have been declining recently in Japan after news of the easing of restrictions for American beef emerged in June, industry analysts say.

 

Japan's imports of US beef in June rose 50 percent above the level a month earlier to about 4,300 tonnes, according to preliminary data from the Animal Quarantine Service office.

 

The average price of a beef carcass at the Metropolitan Central Wholesale Market, fell about 15 percent from its February level as of July 6.

 

Beef prices had remained at high levels over the past few years due largely to the government's import restrictions on US beef.

 

Japan's banning of US beef and the resultant high prices have also led to a general decline in beef consumption.

 

In June this year, Japan partially eased the conditions such as shifting from checking all packages of US beef to partial package checks.