March 6, 2009

Japan to "reconsider" meat consumption as recession deepens

Japanese consumers will continue to turn to less expensive food products in 2009 due to the deepening economic crisis which will definitely Japan's livestock market this year, reports the US Department of Agriculture.


The USDA report stands in contrast to food price inflation experienced in 2008 due to high energy, fuel and grain prices.


Outlook projections for 2009 were made based upon the following assumptions:
  •  Economic recession will support demand for inexpensive foods.

  •  The Export Verification (EV) programme with Japan will remain for US beef, including the restriction that US beef only be from animals   aged 20 months or less.

  •  The pork differential duty system (The Gate Price System) will remain for pork cuts.

But amid the crisis, beef imports are projected up by 5 percent to 690,000 tonnes this year with an expected increase in US market share. Pork consumption remains high but high levels of stocks, lower-priced beef, and ample supplies of poultry suggest pork imports will fall by 2 percent, to 1.22 million tonnes.


For more of the USDA report, please click here.