October 11, 2012

Japan to face slow growth for pork market in 2013

Growth for Japan's pork market is expected to be slow for 2013 due to an anticipated decline in total supply and poor demand.

Due to the weak market, competition between lower priced domestic pork and imported chilled pork is expected to intensify, especially for retail sales.

Although Japan's pork market enjoyed a high level of imports and consumption in the past, this may no longer be the case. Japan's pork sales, especially in the retail and the food service, have stalled this year due to a large (and thereby cost-competitive) surplus of poultry meat.

Pork sales are now expected to adjust downward slightly in 2013 in response to low market prices and weakening demand, resulting in weak growth in Japan's pork market in 2013.

At the same time, it is expected that Japan's high dependence on imported grains will raise prices of livestock feeds for the forecast year. This sets a rather difficult tone for Japanese livestock producers' market outlook for 2013 for their already relatively expensive domestic beef, especially for cuts from high-grade, Wagyu carcasses.