Japanese still have a beef, luckily for us

New Zealand beef exporters look set to hold on to a good-sized slab of the Japanese market despite the lifting of a ban on United States imports this week.

Japanese media report strong consumer resistance to US beef despite the removal of the ban, which dates back to a mad cow disease scare in 2003.

Local exporters - who have doubled sales to Japan during the ban - have been bracing for a big influx of American beef.

But that looks increasingly unlikely, say experts quoted in Japanese media reports.

New Zealand beef exports to Japan in the year to September 2004 were up 96 per cent by volume and 124 per cent by value. The market is now worth almost $250 million.

Exporters knew the boom could not last but were hoping that some market share gains would be retained as consumers grew accustomed to grass-fed beef. Asian consumers have traditionally preferred US-style grain-fed beef.

But the Asahi Shimbun newspaper reported that the "comeback trail will be rough" for US beef, with many consumers still not convinced that it was entirely safe.

Supermarket chains also remained cautious and the Iti-Yokado chain was quoted as saying it had no specific plans to sell US beef.

At the moment, 60 per cent of Japanese beef is domestically raised, with Australia providing most of the rest.

The Japanese Times reported that conditions imposed on US beef would also restrict its re-entry into the market.

Initially, only 10 to 15 per cent of US cattle slaughtered would be eligible for export - meaning Japan could import about 15,000 tonnes.

That is considerably down from the 201,000 tonnes imported before the ban.

Other Asian markets - including South Korea, Singapore and Taiwan - which have also banned US beef are expected to follow Japan's lead.


BSE ban

* A case of BSE (mad cow disease) in December 2003 prompted a US beef ban in Taiwan, Japan and Korea.
* Japan lifted its ban on Monday and the other Asian countries are expected to follow.
* New Zealand and Australian exporters cashed in on the ban.
* Exports to Japan were worth $247 million last year - more than double the 2003 figure.
* Total NZ beef exports were worth $2.1 billion in the year to September 30, 2004.