July 16, 2007

US beef poses stiffer competition to rivals on Japan market

The gradual return on US beef in Japan is indicating a strong competition is brewing, particularly on Australia who currently dominates the Japanese market.

Adding more pressure is last week's announcement of Japanese major supermarket Seiyu said to distribute more US beef from its current 20 outlets to 250.

The average price for Australian grassfed fullsets fell by 3 cents to 215US cents per pound (/lb,) while shortfed fullsets were also down 3 cemts to 239 US cents/lb. Demand for frozen items was remained steady with offer prices slightly under the last week's.

The Japanese wholesale market for chilled Australian products was firm last week due to tight supply from importers. Chilled shortfed fullsets averaged at 1,014 yen per kilogramme (/kg), up 18yen from last week or 69 yen higher than a year ago.

Average prices of wholesale chilled US products have appeared in the Japanese trade press again as steady steak ready choice grade (striploin) was quoted at 3,010 yen/kg last week, and chuck rib was 1,500 yen/kg. Australian striploin (middlefed) averaged at 2,500 yen/kg, while point end briskets were around 920 yen/kg.

US$1 = 121.90 yen (As of July 16, 2007)