Japan's 2009 meat imports set to rise

The economic slowdown is encouraging Japanese consumers to move away from the costlier domestically produced meat, particularly beef, and trade down to less well regarded imported cuts, according to Research and Markets Japan Agribusiness Report Q4.

 

Beef imports were up 3 percent year-on-year in the first half of 2009, led by US beef with imports up by 24 percent to take to take the US' market share to 11 percent. Japanese-produced beef is often more than twice the price of imported beef and the price of local cuts has remained stubbornly high despite the poor state of the economy.

 

Japan's reliance on food imports will likely increase in 2009, though a fall in demand for imported luxury foods could slow the increase. The Democratic Party, who seized power in the August general election, said they are set to achieve an ambitious goal of increasing Japan's food self-sufficiency level to 50 percent within 10 years and then to 60 percent in 20 years. Party strongman Katsuya Okada had also said he hopes to liberalise the sector adding that "food security and free trade are not incompatible".

 

Any changes to Japan's tightly controlled agricultural sector would lead to strong resistance from the farming lobby and plans to liberalise trade in agricultural policies could well be quietly dropped now the Democrats are in power. Indeed, shortly after releasing its manifesto, the party inserted a line assuring farmers they would be protected from any free trade agreement with the US.