September 7, 2005
 

USDA: Japan poultry and products annual report 2005

The Japanese broiler market recovered to more traditional levels in 2005 following the supply disruptions caused by the outbreaks of Highly Pathogenic Avian Influenza (HPAI) in Japan and key supplying countries during the previous year. 

The outlook for 2006 is expected to remain at similar levels. 

Possible bird flu outbreaks in key exporting countries to Japan continue to pose a serious concern in 2006.  It is widely anticipated that Japan's on-going import ban on raw broiler meat from China and Thailand will be extended well into 2006 if sporadic outbreaks persists in both countries.         

The return of U.S. beef, if restored by 2006, on Japanese broiler meat consumption is expected to be fairly limited, the market may begin to feel some impacts in 2006 as the food service and the ready-to-eat foods segment, major end users of broiler meat, starts to feature beef dishes, altering broiler meat. 

For the above reasons, Japan's 2006 total broiler consumption (total broiler meat, including imports of the prepared broiler meat products) is projected to fall slightly, down by 1% from 2005 to 1.81 million MT, mainly due to reduced imports.  

The general picture for Japan's 2006 broiler meat trade, including prepared products, should be similar to 2005. Brazil will remain the single largest supplier of frozen raw meat (mostly boneless leg meat) to Japan. 

Meanwhile, China and Thailand will continue to specialize in providing value-added cooked product exports to Japan from the designated processing plants until the ban on their raw broiler meat is lifted. 

Japan reached a basic EPA/FTA agreement with Thailand on August 1. Though final details are not announced yet, Japanese media reported earlier that minor tariff cuts on broiler and prepared products are included in the deal. Both countries are expected to sign the agreement in a couple of month time during a scheduled visit by the Thai Prime Minister to Japan (After Japan's Lower House Election in September). 

In the first half of 2005, total domestic broiler meat outputs increased 4% to 573,954 MT, particularly helped by high market prices mainly resulting from strong household consumption of chicken for the period. 

For the full USDA report, click here.