Upward beef consumption in Japan
25/01/2008
Japanese beef consumption for the 11 months to November 2007 showed an increase of 3% compared with the same period in 2006. The consumption of the imported beef improved by 5%, but was still 21% less than 2003, when the US was fully present in the market. According to data released by the Agriculture and Livestock Industries Corporation of Japan (ALIC), total beef consumption (volume of beef distributed in the market) in November 2007 was 72,570 tonnes (up 7% on the previous year), taking the yearly total to 741,911 tonnes. A 3% rise in consumption for 2007 would still leave it 12% below the 936,250 tonnes consumed in 2003. The improvement in the consumption of imported beef was largely due to the US re-entry to the Japanese market, and subsequent price competition between US and Australian products. The wholesale prices of Australian chuck and brisket cuts (items that the US mostly sends to Japan), which are popular with the Japanese, started to decrease around April 2007. By November, prices had fallen by between 9% and 20% on the previous year. Regular retail prices of those items remained almost unchanged, giving retailers opportunities to discount and sell in volume during high consumption period. In the foodservice sector, gyudon (beef rice bowl) businesses performed strongly in 2007, consuming large amounts of brisket (shortplate) cuts from both Australia and the US. Restoration of beef consumption in Japan has been a long process, due to lingering BSE concerns, only a slow return of US product, high import prices (due to the tight supply, record grain costs and the strong A$) and a stagnant Japanese economy.
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