October 19, 2006

US and Canadian beef exports to Japan hindered by regulations

US and Canadian beef exports to Japan likely would grow only slowly in coming months due to regulatory conditions, North American cattle lobbyists said late Tuesday (Oct 17).

This is despite the demand-higher-than-supply situation currently, Mike John, president of National Cattlemen's Beef Association said.

Japan's restriction that beef must be derived from cattle under 21 months old has made it difficult for exporters to export large volumes to the country as it would take time for producers to adopt the age verification system, John said.

Moreover, some US exporters are beginning to be disillusioned with the prospect of meat exports to Japan after the debacle in December 2005, when Japan opened its market for a month before closing it again when banned materials were found in one of the shipments.

This has led to a wait-and-see approach this time round among exporters, thus the low volumes, John said.

US beef exports to Japan in August was just 105 tonnes.

Although the National Cattlemen Beef Association does not exactly have the pulse on consumer resistance to US beef, John noted that response to the small amounts shipped so far has been favourable as shipments were sold quickly.

In the first eight months of 2006, Canadian beef exports to Japan totaled 973 tonnes, compared with about 20,000 tonnes a year before the import bans were imposed.

Canada would like to have "meaningful access" to the market as existing regulations make access less than meaningful, Lynch-Staunton, President of the Canadian Cattlemen's Association said. The age requirement poses real difficulties in achieving a critical mass of exports, he added.