July 31, 2008

Japan's US beef imports at 15 percent of 2003 levels on age restriction

Despite a rise in US beef imports to Japan this year, the rule that only meat from cattle aged 20 months and under are allowed has stifled US imports, which are running at about 15 percent as compared to levels before the trade ban in 2003.

Government data showed that although US beef imports in H1 this year rose to about 20,000 tonnes, up from 13,000 tonnes in the same period last year, it represented only 15 percent of Japan's purchases in H1 of 2003.

Before the ban was imposed in December 2003 due to the mad-cow disease, Japan was US biggest export market with 240,000 tonnes of beef exported in 2003.

Although the ban has been lifted, US beef imports are unlikely to grow by a wide margin due to a strict age rule decreeing that only cattle aged 20 months or younger were allowed, as young cattle are less susceptible to the mad-cow disease.

Industry officials say it is difficult for the US to supply a stable supply of meat that meets Japan's age requirement as most US calves are born in spring.

A foreign beef industry source said raising the age limit to 24 months might bring US beef exports back to about 70 to 80 percent of pre-ban levels.

Last year, Tokyo was widely believed to increase the age limit to 30 months, which industry officials said would almost represent a return to pre-ban conditions, but Washington insisted that the age limit be scrapped.

An agriculture ministry official said the two sides are still trying to smooth out details, but declined to elaborate on why no talks have been held for a year.