Retail sales rebound in Japan, but still tough for Australian beef

03 February 2012

Retail sales in Japan during December 2011 rose 2.5% year-on-year, and were 0.3% stronger than the previous month (data released by the Ministry of Economy, Trade and Industry of Japan). Consumer spending was “unexpectedly robust” according to a comment by the Bank of Japan Governor, but such trend has not improved demand for Australian beef so far.

In fact, the strong yen against the US$ and euro – one of reasons for the recent improved retail performance – has negatively impacted Australian beef trade in Japan, making Australian products comparatively expensive throughout the year. The A$ averaged 82.18 yen in 2011 (up 2% year-on-year), while the US$ was 79.72 yen (down 9%).

In the Australian beef export market this week, bids from the US for high chemical lean products remained strong, pushing the market’s expectation above what Japanese buyers were willing to pay. Demand from the Australian domestic market was also firm, with their strong interest in some chilled cuts limiting volumes being offered for Japan.

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