August 23, 2006

US beef struggles to gain acceptance in Japan

While US beef was sold out in its first day back on Japanese shores, it is having a harder fight to gain customers among restaurateurs and supermarket chains, according to Japanese press reports.

Moreover, restaurants interested in carrying US beef could not secure enough supplies to put it on the menu. Although fast-food chains Yakiniku and Yoshinoya are receptive to using US beef, they are awaiting supplies arriving by sea that would allow purchases in bulk and at lower prices. 

Only 17.6 tonnes of US beef have arrived by air in the first 10 days since Japan reopened its market,

Part of the reason is that Japan only allows beef from animals 20 months or younger as they believe younger cattle are less at risk from mad cow disease.

Still, at about US$11.70 a pound on average, US beef are much cheaper than the local version, which can cost twice as much.

However, Australian beef is nearly matching the price and is altering production processes from grass-fed to grain-finished to cater to Japanese palates. Western Australia's largest packer, Harvey Beef recently announced it is shifting its production to grain-fed beef to cut costs and increase sales. 

US beef is losing the battle on the retailers' front however, with most chains reporting there is little or no demand for the product.

Recent surveys indicate that between 54 percent and 90 percent of Japanese consumers said they would not buy US beef.