July 19, 2006

Japan's overall pork imports dip but fresh pork imports rise

Japan's overall pork imports are expected to decline by more than 10 percent, to 1.2 million tonnes in 2006, according to the USDA's livestock and poultry report.

In May, Japan's total imports of fresh, chilled, and frozen pork cuts were down 22 percent, as the market returned to normalcy after the sharp increase in Japan's pork imports in 2004 when Japan's pork imports rose by 15 percent. 2004 was the year when bird flu and mad cow disease exerted a great influence on consumer preferences towards pork.

Imports increased 2.8 percent in 2005 as well.

Higher pork imports in 2004 and 2005, coupled with resumption of cooked poultry product imports, have also increased Japan's pork stocks to- use ratio. For 1999-2003, prior to trade disruptions, Japan's monthly pork stocks-to-use ratio averaged 0.96. Last year, the ratio averaged 1.52.

Japan is the world's largest importer of fresh and frozen pork products and also the US pork industry's top importer. Last year, Japan accounted for 39 percent of total US pork exports.

However, since 1990, Japan's year-over-year pork imports have declined just four times, a likely result of Japan's import policies.

Frozen imports have taken the steepest drop so far this year. Japanese imports of frozen pork are down by 31 percent in the first 5 months of 2006.

Fresh pork imports fared better probably as its limited shelf-life meant it would be supplied to retailers or restaurants who cater to stable demand.

Japan's imports of fresh pork products increased 21 percent in the first 5 months of 2006.