August 2, 2006

 

US beef exporters may have to struggle to quell Japanese fears

 

 

Although Japan announced its decision to resume beef imports from the United States last week, it could be some time before consumers feel it is safe enough to eat.

 

Consumers, restaurants and retail outlets are still leery about American beef, despite government assurances that such meat is safe from mad cow disease.

 

In a recent survey by NTT Resonant Co in Tokyo, 71 percent of Japanese consumers said they were either "opposing" beef imports or "rather opposed" to resumption of the trade. The chief concern cited was the safety of the meat. 

 

61 percent said they would avoid consuming US beef, while 96 percent said they would want compulsory disclosure of beef origin from restaurants and retailers.

 

Japan first closed its market to US beef in December of 2003, after mad cow disease was discovered in the US and Canada. Imports were resumed briefly in January this year but discovery of bone fragments forced shipments to be halted again. 

 

Surveys show that the incident raised distrust among the Japanese regarding US products.

 

After a month long inspection, 33 of 35 meatpacking plants in the US received permission last Thursday to begin beef exports to Japan.

 

One of the remaining plants would be approved if the US government monitors it for two months, according to local newspaper reports. The other is waiting to complete an in-house manual for shipping beef to Japan.

 

Despite the official lifting of the ban, most restaurant and retail firms are adopting a wait-and-see attitude.

 

Yoshinoya D&C Co., the major operator of the "gyudon" beef bowl chain, is one of the few companies who look forward to offering American beef. The company announced it would take two months to resume beef bowl sales.

 

However, most restaurants have no plans to sell the beef, as they have already established beef supplies from Australia and China after the first beef ban.

 

Many supermarket chains said they have no plans to sell US beef for the next few months or longer. Retailers' choices would be strongly influenced by the opinions of housewives who are likely to be more concerned about food safety. 

 

Beef consumption has been falling in Japan since December, 2003, from 933,000 tonnes in 2002 to 806,000 tonnes last year.

 

Meanwhile, beef in Japan has also gotten more expensive, annual average wholesale price increased by 37 percent to 1,336 yen per kilogramme (US$5.30/lb) in 2005 from 975 yen (US$3.87) in 2002.

 

Tatsuo Iwama, the managing director of Japan Meat Importers & Exporters Association, said that despite the resumption of beef imports, prices are likely to remain stable for the time being.