November 16, 2007

Japanese groups call for speedy resolution on US beef trade rift

Eight Japanese industry associations have submitted a proposal to the Japanese government, requesting for an early resolution of the US/Japan beef import protocol negotiations.

Japanese industry groups from meat and food business sectors, including the Japan Foodservice Association, have called for an initial change of the current cattle age limitation of under 21 months to under 31 months, then a full removal of the age restriction when the World Animal Health Organization (OIE) upgrades the US classification to "negligible risk" for mad cow disease.

The request was made after five months of little progress on the US/Japan negotiations. Although the requirement for 100 percent box inspections was removed in June this year, the US and Japanese governments have not yet reached an agreement on age restriction. As Japan requires consultations through its Food Safety Commission prior to any changes concerning import regulations, the process of altering the current protocol is expected to take some time, even after the bilateral agreement has been signed.

US beef is historically popular among the Japanese foodservice, especially gyudon (beef rice bowl) and yakiniku (Korean/Japanese style barbeque) restaurants. While the gyudon sector has made a significant recovery in sales since the resumption of US beef imports in July 2006, yakiniku and other foodservice businesses are still struggling due to a number of issues. Limited US beef supplies is said to be one of major factors behind sluggish sales, along with subdued consumer spending and the global increase in material costs.

Meanwhile, the Japanese government reaffirmed its position to consider the beef trade issue based on scientific assessment, when the US President and Japanese Prime Minister meet in Washington this week.

Japan imported 24,348 tonnes of US beef during January to September 2007, only 12 percent of the same period in 2003.