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Japanese consumers - Hungry for U.S. beef

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agman

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Hunger for U.S. beef exceeds expectation

09/04/2006

THE ASAHI SHIMBUN

Japan

Consumer demand for U.S. beef is so high that Japanese retailers are running short of supplies, with one popular restaurant chain planning to ration beef to its customers.

U.S. beef began arriving last month after Japan lifted a ban triggered by concerns about mad cow disease.

While some chains jumped in to import U.S. beef, many others thought lingering fears would stifle demand and held off on resuming imports.

"Its popularity was greater than expected," said an official of Zenshoku Co., which operates the Den grilled beef restaurant chain.

The chain put U.S. beef back on the menu at its 57 outlets last Tuesday. But operators expected they would have exhausted their 4 tons of stock by last Saturday.

"All we can do is ask our customers to please wait two more weeks," the official said.

Japan banned U.S. beef imports in December 2003 after a case of bovine spongiform encephalopathy was reported in the United States.

It lifted the ban last December, but a shipment was then found to contain high-risk animal parts. The ban was back in place Jan. 20.

Since the resumption in July, imports have been restricted to cattle 20 months old or younger, which are less susceptible to BSE.

Yet import levels remain very low. The unexpectedly high demand will likely add to U.S. calls for relaxing import conditions.

According to farm ministry officials, 160 tons of U.S. beef arrived in the 36 days ending last Thursday.

That amount is minuscule compared to pre-ban levels of 20,000 tons a month, and also lower than the 730 tons imported over 40 days until Jan. 20.

Yoshinoya D&C Co., which operates a gyudon beef bowl chain nationwide, plans to resume serving the dish using American beef this month.

But the popular dish will be offered only on a limited basis as the chain is unable to secure 1,000 tons a month.

"Many of our customers say they want it back soon, but we are simply short of beef," a Yoshinoya official said.

Yoshinoya outlets will offer gyudon only during limited hours on limited days--and large-portion orders will be declined.

The dish will cost about 400 yen, against the pre-ban price of 280 yen.

Costco Wholesale Japan, which became the first supermarket to sell U.S. beef here in early August, sold out of all its stock the next morning. It took a week to resume sales.

Four supermarket chains that purchase through wholesaler CGC Japan Co. will sell U.S. beef this week, but the stores expect the stock will last only one or two days.(IHT/Asahi: September 4,2006)

Agman - the limitation is currently supply related not demand related as the number of cattle meeting the A-40 classification is less than expected and the final yield after all trim requirements are met is less also than expected raising the cost of producing the final product for export sales.

If S. Korea announces the resumption of U.S beef imports tomorrow, which would be product from cattle under 30 months of age, this may put additional pressure on Japan to do the same. In the final year of exports to S. Korea, prior to the import ban, we exported $850 million dollars worth of beef and by-product to S. Korea.

Following the elections in Japan this month there is a likelihood their current Health Minister will be replaced which could accelerate Japan's movement to importing product from cattle under 30 months of age. Have a great day.
 
I think this is what's called a pyrrhic victory.
 

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