July 1, 2011

Japan beef imports rises in May despite slow market demand

Total beef imports into Japan during May were lifted by increased shipments from the US to 40,151 tonnes swt, an increase of 11% on-year, according to the Japanese Ministry of Finance.

Assisted by the weak US dollar, beef imports from the US during May surged 50% on-year to 9,215 tonnes swt, taking the volume for the first five months of 2011 to 41,842 tonnes swt, 53% higher than the same period in 2010.

The Japanese trade anticipates the imported beef inventory to remain relatively high over the next few months, while demand remains slow in the market.

Monthly imports from Australia were similar to last year, at 25,867 tonnes swt, up 2% on-year, but chilled beef volumes reduced 5% to 10,899 tonnes swt, on the back of strong competition from the US.

Australia's beef trade with Japan remained challenging this week, reflecting the tough conditions in the market. The very strong Australian dollar and plentiful stocks in the market kept buyers' bids low, hampering returns for Australian exporters.

The trade noted improved interest for imported beef in the Kansai (west Japan) region. Wholesale prices for chilled Australian beef this week were mostly unchanged on last week, while frozen cow meat (85CL) averaged JPY480 (US$5.95)/kilogramme, the lowest since December 2010.