Surveys Show Japanese Consumer Approval of U.S. Beef Rising

Surveys Show Japanese Consumer Approval of U.S. Beef Rising

Once the premier market for U.S. beef exports, Japan has posed challenges for the U.S. beef industry in the post-BSE era because of limited cattle supplies to meet the 20-month age limit, coupled with sensationalized media reports that have fueled consumer concerns about the safety of U.S. beef.

To help overcome these unfounded concerns, USMEF-Japan has been actively engaged in educating Japanese consumers about the quality and safety of U.S. beef, and those efforts are bearing fruit.

Surveys conducted on a statistically significant sample of Japanese consumers in March 2006 by Macromill showed that the United States faced an uphill battle in that market:

• Only 7.7 percent considered the U.S. beef safety system to be “very credible” or “somewhat credible.”
• Those who said the U.S. beef safety system was “not very credible” or “not at all credible” measured 72.5 percent.

Two years later, those numbers have changed significantly for the better: 24.7 percent of those surveyed say the safety of U.S. beef is “very credible” or “somewhat credible,” while the number of dissenting opinions has been cut virtually in half: only 36.6 percent say it is not credible.

“This is an important movement in the Japanese marketplace,” said Philip Seng, president and CEO of USMEF. “Prior to the discovery of BSE in the United States, Japan alone represented nearly 43 percent of annual U.S. beef exports by volume (546,010 metric tons or 1.2 billion pounds), and that accounted for half of the value of all U.S. beef exports – more than $1.8 billion.”

The swing in consumer perceptions, Seng believes, is due in great measure to a thorough and continuous education program that USMEF-Japan has conducted to give consumers accurate information not only about the quality and safety of U.S. beef, but how it provides an excellent alternative to other protein sources in Japanese cuisine.

“We Care” campaign

An important strategic step in regaining the trust of Japanese consumers was the launching of USMEF’s “We Care” campaign in mid-2006, just after U.S. beef returned to the market. It has served as the foundation for all activities. Following are several examples:

• USMEF-Japan organized a media tour to Texas in May 2007 that enabled several journalists to experience Western/ranch living and see how U.S. cattle were raised. This tour generated the equivalent of $200,000 in positive print and TV media coverage for the U.S. beef industry. A similar tour in 2008, which followed several Japanese mothers and their children in Colorado, was conducted with Saita magazine. The subsequent four-page article and internet exposure has an estimated value of more than $150,000.
• U.S. Meat Month in July 2007 featured a variety of activities and events designed to educate buyers and consumers about U.S. beef. The month was highlighted by the appearance and support of U.S. baseball greats Nolan Ryan and Bobby Valentine, who participated in beef promotions at a Japanese pro-baseball stadium, sold “Nolan and Bobby Bentos” with U.S. beef, fielded questions at a press conference, and spoke at the “Meat Extravaganza” showcase to more than 600 key buyers and executives. The advertising value of media coverage for the month was estimated at more than $7 million. Additionally, Japanese native Tadahito Iguchi, who starred for the 2005 World Series champion Chicago White Sox, participated in baseball-themed promotions that linked U.S. beef and family fun.
• “Sports Café 6” – For two months this spring. USMEF sponsored a sports café selling U.S. steak items near Shinjuku, the busiest train station in Japan. More than 40,000 people visited the restaurant and another 8 million people were reached through related print advertising.
• The USMEF Beef Retail Caravans – Now in their second season, the caravans distribute educational material and visitors get the chance to view a “farm to plate” video while enjoying U.S. beef samples. Frequently, U.S. producers participate in the caravans, putting a human face on U.S. beef production. The five stores participating this year sold more than one ton of U.S. beef in two days of sales, an increase of 395 percent from the previous week.
• Targeted advertising – American women who work in U.S. agriculture or the beef industry have been featured in ads that portray the dual role they play in feeding wholesome U.S. beef to their families, as well as the trust they have in the product they help create.

Another confidence-building factor is that all major Japanese retailers once again carry U.S. beef. A retailer’s endorsement – by featuring U.S. beef in their meat case – plays very strongly in the minds of Japanese consumers. The consumers trust the retailers to sell only trustworthy items, so when they see U.S. beef in the leading supermarkets, they have a sense of reassurance that the product is safe and wholesome. Those retailer relationships have been cultivated for years by USMEF-Japan through intense trade servicing, training seminars and business development teams.

“We are seeing this consumer confidence expressed in the buying habits of Japanese consumers,” said Seng. “Right now, Japan is the United States’ fourth-leading market in terms of volume and third in terms of value, but these are hard-fought yards in a very competitive market. There is tremendous potential here if the U.S. beef industry can regain expanded access to this key trading partner but, as we learned from market access negotiations with South Korea, we must be very judicious in how we approach Japan regarding expanded access or these gains may be jeopardized.”

Working with limited cattle supplies

As consumer attitudes improve and the demand for U.S. beef rises, the limited supply of beef from cattle eligible for export to Japan becomes even more magnified. Lack of eligible product availability is one of the factors that held U.S. beef exports to Japan in 2007 to just one-eighth of the 2003 volume, and only one-sixth of the 2003 value.

USMEF has countered this problem with efforts to educate Japanese buyers and consumers about an expanded variety of U.S. beef cuts from this limited supply of cattle that can be used in local cuisine. This is one factor that has contributed to a sharp jump in beef exports to Japan in the first seven months of 2008: a 70 percent increase in volume and 71 percent increase in value over 2007 levels.

“Utilizing a wider range of cuts from the limited supply of Japan-eligible cattle has really helped expand the presence of U.S. beef in Japan,” Seng said. “Demand is still outstripping supply, but these efforts have allowed us to increase market share while we grow our supply of eligible cattle and continue to work toward full market access for U.S. beef.”

Surveys Show Japanese Consumer Approval of U.S. Beef Rising

Once the premier market for U.S. beef exports, Japan has posed challenges for the U.S. beef industry in the post-BSE era because of limited cattle supplies to meet the 20-month age limit, coupled with sensationalized media reports that have fueled consumer concerns about the safety of U.S. beef.

To help overcome these unfounded concerns, USMEF-Japan has been actively engaged in educating Japanese consumers about the quality and safety of U.S. beef, and those efforts are bearing fruit.

Surveys conducted on a statistically significant sample of Japanese consumers in March 2006 by Macromill showed that the United States faced an uphill battle in that market:

• Only 7.7 percent considered the U.S. beef safety system to be “very credible” or “somewhat credible.”
• Those who said the U.S. beef safety system was “not very credible” or “not at all credible” measured 72.5 percent.

Two years later, those numbers have changed significantly for the better: 24.7 percent of those surveyed say the safety of U.S. beef is “very credible” or “somewhat credible,” while the number of dissenting opinions has been cut virtually in half: only 36.6 percent say it is not credible.

“This is an important movement in the Japanese marketplace,” said Philip Seng, president and CEO of USMEF. “Prior to the discovery of BSE in the United States, Japan alone represented nearly 43 percent of annual U.S. beef exports by volume (546,010 metric tons or 1.2 billion pounds), and that accounted for half of the value of all U.S. beef exports – more than $1.8 billion.”

The swing in consumer perceptions, Seng believes, is due in great measure to a thorough and continuous education program that USMEF-Japan has conducted to give consumers accurate information not only about the quality and safety of U.S. beef, but how it provides an excellent alternative to other protein sources in Japanese cuisine.

“We Care” campaign

An important strategic step in regaining the trust of Japanese consumers was the launching of USMEF’s “We Care” campaign in mid-2006, just after U.S. beef returned to the market. It has served as the foundation for all activities. Following are several examples:

• USMEF-Japan organized a media tour to Texas in May 2007 that enabled several journalists to experience Western/ranch living and see how U.S. cattle were raised. This tour generated the equivalent of $200,000 in positive print and TV media coverage for the U.S. beef industry. A similar tour in 2008, which followed several Japanese mothers and their children in Colorado, was conducted with Saita magazine. The subsequent four-page article and internet exposure has an estimated value of more than $150,000.
• U.S. Meat Month in July 2007 featured a variety of activities and events designed to educate buyers and consumers about U.S. beef. The month was highlighted by the appearance and support of U.S. baseball greats Nolan Ryan and Bobby Valentine, who participated in beef promotions at a Japanese pro-baseball stadium, sold “Nolan and Bobby Bentos” with U.S. beef, fielded questions at a press conference, and spoke at the “Meat Extravaganza” showcase to more than 600 key buyers and executives. The advertising value of media coverage for the month was estimated at more than $7 million. Additionally, Japanese native Tadahito Iguchi, who starred for the 2005 World Series champion Chicago White Sox, participated in baseball-themed promotions that linked U.S. beef and family fun.
• “Sports Café 6” – For two months this spring. USMEF sponsored a sports café selling U.S. steak items near Shinjuku, the busiest train station in Japan. More than 40,000 people visited the restaurant and another 8 million people were reached through related print advertising.
• The USMEF Beef Retail Caravans – Now in their second season, the caravans distribute educational material and visitors get the chance to view a “farm to plate” video while enjoying U.S. beef samples. Frequently, U.S. producers participate in the caravans, putting a human face on U.S. beef production. The five stores participating this year sold more than one ton of U.S. beef in two days of sales, an increase of 395 percent from the previous week.
• Targeted advertising – American women who work in U.S. agriculture or the beef industry have been featured in ads that portray the dual role they play in feeding wholesome U.S. beef to their families, as well as the trust they have in the product they help create.

Another confidence-building factor is that all major Japanese retailers once again carry U.S. beef. A retailer’s endorsement – by featuring U.S. beef in their meat case – plays very strongly in the minds of Japanese consumers. The consumers trust the retailers to sell only trustworthy items, so when they see U.S. beef in the leading supermarkets, they have a sense of reassurance that the product is safe and wholesome. Those retailer relationships have been cultivated for years by USMEF-Japan through intense trade servicing, training seminars and business development teams.

“We are seeing this consumer confidence expressed in the buying habits of Japanese consumers,” said Seng. “Right now, Japan is the United States’ fourth-leading market in terms of volume and third in terms of value, but these are hard-fought yards in a very competitive market. There is tremendous potential here if the U.S. beef industry can regain expanded access to this key trading partner but, as we learned from market access negotiations with South Korea, we must be very judicious in how we approach Japan regarding expanded access or these gains may be jeopardized.”

Working with limited cattle supplies

As consumer attitudes improve and the demand for U.S. beef rises, the limited supply of beef from cattle eligible for export to Japan becomes even more magnified. Lack of eligible product availability is one of the factors that held U.S. beef exports to Japan in 2007 to just one-eighth of the 2003 volume, and only one-sixth of the 2003 value.

USMEF has countered this problem with efforts to educate Japanese buyers and consumers about an expanded variety of U.S. beef cuts from this limited supply of cattle that can be used in local cuisine. This is one factor that has contributed to a sharp jump in beef exports to Japan in the first seven months of 2008: a 70 percent increase in volume and 71 percent increase in value over 2007 levels.

“Utilizing a wider range of cuts from the limited supply of Japan-eligible cattle has really helped expand the presence of U.S. beef in Japan,” Seng said. “Demand is still outstripping supply, but these efforts have allowed us to increase market share while we grow our supply of eligible cattle and continue to work toward full market access for U.S. beef.”