August 28, 2007

 

Japan to reconsider easing restrictions on US beef

 

 

Japan is expected to relax curbs on US beef imposed in 2003 after officials between two countries will discuss negotiations this month on revising import conditions. 

 

A Japanese official said details of the talks are confidential but it will certain centre on cattle age limits.

 

US exporters such as Tyson Foods Inc., the world's biggest meat processor, and Cargill Inc., would benefit from greater access to the Japanese market, while the move may hurt rival exporters such as Australia. A year ago Japan replaced a ban on US beef with a rule limiting imports to meat from animals aged 20 months or younger.

 

Yasunori Yoshimura, a spokesman for fast-food chain Yoshinoya D&C Co., based in Tokyo said supply would never be a problem if the government raises its limit to 30 months.

 

Live cattle futures in Chicago dropped 19 percent in five trading days in December 2003 after the US reported its first case of mad cow disease and importers, including Japan, halted purchases. The most-active contract gained 8.2 percent this year, closing at a three-week high of 97.825 cents a pound on August 24.

 

South Korea, once the third-largest buyer of US beef, said on August 24 it will lift ban on imports after blocking market access at the start of the month. The government will restart inspection checks from August 27, the Ministry of Agriculture and Forestry said.

 

Japan's imports of US beef totalled 27,000 tonnes by August 2, according to the Ministry of Health, Labour and Welfare. Imports were 298,517 tonnes valued at US$1.17 billion in calendar 2003, according to the US Meat Export Federation Web site.

 

The Paris-based World Organization for Animal Health in May has given the US a "controlled-risk'' rating for mad-cow disease. The designation means controls are effective and meat from US cattle of any age can be safely traded.

 

The US is asking Japan to abolish its age rule, which is tougher than a 30-month restriction in South Korea and other Asian importers. Japan's limit was set as the youngest case of the disease in its own herd was found in a 21-month-old animal.

 

Japan's Food Safety Commission would need to approve any change in the restrictions, which currently put the nation at risk of an unfavourable ruling from the World Trade Organization if the US lodges a complaint.

 

The US provided information to Japan showing its cattle were not at high risk of infection from the disease from eating contaminated feed, the Japanese government official said August 23.

 

On the other hand, Australia's beef exports to Japan rose 41 percent in 2004 after US beef was banned, according to Meat and Livestock Australia (MLA). MLA said Australian beef also accounted fifty percent market share last year. Shipments to Japan were forecast at 390,000 tonnes this year, down 3.9 percent from 405,796 tonnes due to the re-entry of US beef, the exporters group said.

 

US beef producers will probably increase shipments of forequarter cuts used in Japanese gyudon and at grilled-meat restaurants, where pork and seafood were substituted on menus in the absence of US beef, Nicholas said.

 

Gyudon, widely sold in fast-food restaurants such as Yoshinoya, is braised beef and onions marinated in soy sauce and laid on top of rice.

 

Meat and Wool New Zealand reports that Japan's beef imports from New Zealand more than doubled since the ban on US imports, reaching 37,532 tonnes in the year ended September 30, 2006, according to Meat & Wool New Zealand.