August 1, 2007

 

US beef sees better market ahead in Japan

 

 

The US beef sector is keeping its hopes up on the Japanese market as it expects to close US$1 billion in trade in the coming years.

 

US Agriculture Secretary Mike Johanns will welcome his Japanese counterpart, Norihiko Akagi this week, in a Washington visit that will include talks on US beef exports to the Asian nation.

 

The Bush administration has been pressing Tokyo to relax import rules in place since mad cow disease surfaced in the United States in 2003.

 

Last year, Japan partially lifted its ban, but exporters are eagerly pressing for permission to ship beef from older cattle than currently allowed.

 

One industry source said Akagi could not announce any changes to import rules until Japan's health authority makes a safety recommendation which is expected in August.

 

Gregg Doud, an economist from the National Cattlemen Beef Association sees a chance to regain booming trade with Japan, worth an annual US$1.4 billion before the mad cow disease scare.

 

Sales and exports through the third week of July were 21,200 tonnes, far above the 1,100 tonnes in the same period of 2006.

 

The industry is also expecting South Korea to decide by end-September that could open that country's beef market to more US products.

 

News on beef trade with South Korea is significant not only for the US meat industry, but also for a host of sectors anxious to see a historic bilateral trade deal approved by Congress.

 

Lawmakers say they will not consider the US-South Korea free trade agreement until that beef market is fully reopened.

 

Trade with Korea is growing at a good clip. Through the third week of July, shipments and outstanding sales of beef were 22,500 tonnes, compared with zero last year.