October 15, 2010

Japan-US beef talks to progress amid safety analysis

Japan, the biggest buyer of US beef before an outbreak of mad cow disease prompted the country to ban imports, is analysing the safety of meat from cattle older than 20 months amid US calls to normalize the trade.

Japan restricts US beef imports on cattle aged 20 months or younger due to concerns that older animals might be at higher risk for BSE. The nation's Food Safety Commission must rule that any change in policy won't increase human health risks, in order for imports of older cattle to resume.

Japan banned US beef when the US disclosed its first case in 2003. The ban was relaxed in 2005 to allow meat from young cattle. Companies including Tyson Foods and Cargill lose about US$1 billion in sales a year because of the restriction, said the National Cattlemen's Beef Association.

"We have to collect enough data before submitting a request to the Food Safety Commission for risk assessment," said Minoru Yamamoto, director at the international animal health affairs office of the Ministry of Agriculture, Forestry and Fisheries. "We are seeking information from the U.S. and waiting for their replies," he said.

Japan also requires US shippers to remove risk materials, such as the spinal cord, that can transmit the disease to humans if consumed. If Japan raises the age limit to 30 months, US beef shipments to the Asian nation may return close to pre-ban levels, said Susumu Harada, senior director at the Tokyo office of the US Meat Export Federation.

Japan imported 475,000 tonnes of beef last fiscal year, from which 75% was from Australia and 16% was from the US, according to the agriculture ministry. In the year ended March 31, 2004, US beef represented 201,000 tonnes, or 39%, of Japan's total imports.

US lawmakers called President Barack Obama to address beef trade during his meeting with Naoto Kan when the Japanese prime minister visited the nation last month, saying Japan's restrictions were not based on sound science nor are they consistent with international guidelines.

Japan and the U.S. held their first working-level meeting in three years last month, based on an agreement reached in April between US Agriculture Secretary Tom Vilsack and then Japanese Agriculture Minister Hirotaka Akamatsu to resume beef talks.

Japan was the third-largest destination for US beef last year, at US$470 million, up from US$383 million in 2008, according to the US Meat Export Federation. That compares with US$1.391 billion in 2003. Mexico and Canada were the biggest buyers of US beef last year.