Audio: Expanded Access Boosting Japan’s Demand for U.S. Beef
Published: Apr 23, 2013
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More than two months have now passed since Japan announced a long-awaited regulatory change that allows imports of U.S. beef from cattle less than 30 months of age – up from the previous limit of 21 months. This change in market access officially took effect Feb. 1. Exports to Japan made modest gains in February while the U.S. industry made this transition, but weekly trade data suggest a larger boost is likely when March export results are announced.
Notable changes in demand are also taking place at the point of sale. According to results reported by Japan’s Agriculture and Livestock Industries Corporation (ALIC) for March, supermarket sales of U.S. beef in Japan surged 36.5 percent compared to a year ago. Sales of Australian beef declined 16.7 percent, while domestic sales results were mixed: Wagyu sales increased 1.3 percent, but beef from Japan’s other domestic cattle declined 12.7 percent.
Greg Hanes, U.S. Meat Export Federation (USMEF) assistant vice president for international marketing, recently attended FoodEx Japan – Asia’s largest food trade show and one of the world’s most important venues for exhibiting U.S. beef. He reports an enthusiastic reception from Japanese buyers eager to have access to a broader and more reliable supply of U.S. beef. This is especially true among representatives of local and regional companies who had difficulty obtaining U.S. beef under the 21-month cattle age restriction. Hanes adds that the higher cattle age limit will also allow more Prime beef and well-marbled Choice cuts to be eligible for export to Japan.
TRANSCRIPT
JOE SCHUELE: More than two months have passed since Japan announced a long awaited regulatory change that allows imports of US Beef from cattle less than 30 months of age, up from the previous limit of 21 months. In this US Meat Export Federation Report we speak with Greg Hanes, USMEF Assistant Vice President for International Marketing. Hanes recently attended FoodEx Japan, Asia’s largest food trade show and one of the world’s most important venues for exhibiting US beef.
GREG HANES: Definitely the mood at FoodEx was one of excitement. You had the buyers there who have been really tracking this whole issue over the years and so this really gives them the chance now to expand what they’re doing. But you also saw a lot of excitement from the buyers who really hadn’t been able to use US beef and probably aren’t really all that familiar with it now, but hearing what was going on in the media and seeing the excitement from the other traders and the other buyers, their excitement really started to grow, and so you see a lot of potential now with these companies that really haven’t used US beef for the last 10 years. One of the key areas I think we’re going to see a lot of growth in is now the regional food service and retail chains. In the past, the limited supply that has come in has really been used up more by the national retailers and some of the national food service chains. Well now, that’s going to be able to get out into all these other areas.
JOE SCHUELE: Hanes noted that the higher cattle age limit will also allow more high-quality, well-marbled product to be exported to Japan to compete with the domestic Wagyu.
GREG HANES: That’s what’s so exciting about this, especially with getting more prime beef in there. The Wagyu, as you know, is very high and very marbled, but very expensive. The US Prime, you’ve got that good marbling, you’ve got the corn fed flavor, but you’ve got it at a much more accessible price point, so that’s really going to entice a lot of these high end restaurants to shift over, and I think you’ll even see this at some of the other, newer restaurants, and kind of concept restaurants as they try to really provide high-quality, top-tier products at a reasonable price to their consumers.
JOE SCHUELE: For more on this and other trade issues, please visit USMEF.ORG. For the US Meat Export Federation, I’m Joe Schuele.
Notable changes in demand are also taking place at the point of sale. According to results reported by Japan’s Agriculture and Livestock Industries Corporation (ALIC) for March, supermarket sales of U.S. beef in Japan surged 36.5 percent compared to a year ago. Sales of Australian beef declined 16.7 percent, while domestic sales results were mixed: Wagyu sales increased 1.3 percent, but beef from Japan’s other domestic cattle declined 12.7 percent.
Greg Hanes, U.S. Meat Export Federation (USMEF) assistant vice president for international marketing, recently attended FoodEx Japan – Asia’s largest food trade show and one of the world’s most important venues for exhibiting U.S. beef. He reports an enthusiastic reception from Japanese buyers eager to have access to a broader and more reliable supply of U.S. beef. This is especially true among representatives of local and regional companies who had difficulty obtaining U.S. beef under the 21-month cattle age restriction. Hanes adds that the higher cattle age limit will also allow more Prime beef and well-marbled Choice cuts to be eligible for export to Japan.
TRANSCRIPT
JOE SCHUELE: More than two months have passed since Japan announced a long awaited regulatory change that allows imports of US Beef from cattle less than 30 months of age, up from the previous limit of 21 months. In this US Meat Export Federation Report we speak with Greg Hanes, USMEF Assistant Vice President for International Marketing. Hanes recently attended FoodEx Japan, Asia’s largest food trade show and one of the world’s most important venues for exhibiting US beef.
GREG HANES: Definitely the mood at FoodEx was one of excitement. You had the buyers there who have been really tracking this whole issue over the years and so this really gives them the chance now to expand what they’re doing. But you also saw a lot of excitement from the buyers who really hadn’t been able to use US beef and probably aren’t really all that familiar with it now, but hearing what was going on in the media and seeing the excitement from the other traders and the other buyers, their excitement really started to grow, and so you see a lot of potential now with these companies that really haven’t used US beef for the last 10 years. One of the key areas I think we’re going to see a lot of growth in is now the regional food service and retail chains. In the past, the limited supply that has come in has really been used up more by the national retailers and some of the national food service chains. Well now, that’s going to be able to get out into all these other areas.
JOE SCHUELE: Hanes noted that the higher cattle age limit will also allow more high-quality, well-marbled product to be exported to Japan to compete with the domestic Wagyu.
GREG HANES: That’s what’s so exciting about this, especially with getting more prime beef in there. The Wagyu, as you know, is very high and very marbled, but very expensive. The US Prime, you’ve got that good marbling, you’ve got the corn fed flavor, but you’ve got it at a much more accessible price point, so that’s really going to entice a lot of these high end restaurants to shift over, and I think you’ll even see this at some of the other, newer restaurants, and kind of concept restaurants as they try to really provide high-quality, top-tier products at a reasonable price to their consumers.
JOE SCHUELE: For more on this and other trade issues, please visit USMEF.ORG. For the US Meat Export Federation, I’m Joe Schuele.