February 4, 2013

Japan's 2012 beef imports down 0.6% on-year

Due to uncertain market conditions and US age protocols, Japan imported only 514,186 tonnes swt of beef during 2012, down 0.6%, or 3,045 tonnes less from the previous year.

According to data released by Japan's Ministry of Finance that while total shipment volumes for the 11 months in 2012 were up 1.3% on-year, December imports declined 20% from a year ago to 36,475 tonnes swt, with supplies from the US being the lowest since February 2011, at 7,759 tonnes swt.

The fall was largely impacted by the strong offer prices from the US, easing of the Japanese yen, and the trade taking a 'wait-and-see' attitude as the age relaxation to less than 31 months finally appearing on the horizon. The US beef imports into Japan during 2012 totalled 131,921 tonnes swt (up 9% from 2011), with its share in the imported beef market reaching 26% (3% points higher than the previous year).

While the US supply capability will greatly be enhanced with the new 30 months rule from February, imports during the first few months of 2013 are forecast to be rather subdued, influenced by the exchange rates and reportedly plentiful stocks in the market as forecast by Japan's Agriculture and Livestock Industries Corporation.