November 1, 2007

Japan's beef production to rise near year-end peak

Japanese beef production is expected to accelerate towards year-end, as the number of animals suitable for slaughter rises due to recent low carcass prices, according to Meat and Livestock Australia (MLA).

According to registrations contained in the national cattle identification system in Japan, numbers of Kuroge Washu Wagyu suitable for slaughter have increased by 4.6 percent (29 months of age) and 2.3 percent (30 months) as of the end of September, compared with the same time in 2006.

F1 numbers also lifted by 13 percent (27 months), while dairy cattle had a significant rise of 21 percent (20 months).

This suggests a surge in domestic beef supply for the peak consumption season during November to January.

Japanese wholesale carcase prices in September remained below last year's levels, despite lower slaughter numbers. In the Tokyo wholesale market, Wagyu steer A4 grade carcases averaged 2,118 yen/kg (A$21.6), 6 percent lower than 2006.

F1 (B3 grade) and dairy (B2) steer prices also fell to 1,309 yen/kg and 627 yen/kg, down 9 percent and 25 percent, respectively.

Cattle slaughter in September stood at 95,098 head - 3 percent below the previous year.