July 21, 2004

Australian Beef Market Affected By Japanese Beef Import Speculation

Speculation that Japan is about to lift a ban on United States beef imports is causing meat buyers to go cold on Australian beef.

Australia has shipped record amounts of beef to Japan since the ban was imposed, after the US found a case of mad cow disease last year.

Negotiators from the US and Japan are meeting for a third round of talks today, but Meat and Livestock Australia does not expect a decision on the resumption of trade for another month.

MLA's Tokyo representative Samantha Jamieson says all the talk is making trading conditions difficult.

"Even just talk of negotiation of the US coming back into the market is having an effect on some of the key importers.

"They're wanting to not have too higher stocks; they want to make sure their stock levels are at appropriate levels. So if there is an announcement for the US to come back in they're not going to have stocks of expensive product on board."