Despite end of ban, U.S. beef virtually off-limits at Japanese stores
This article was published on Monday, August 21, 2006 7:54 PM CDT in Business
By Yuri Kageyama
AP Business Writer
Email this story Print this story TOKYO (AP) -- It's been weeks since Japan ditched its import ban on U.S. beef and the first shipment went on sale, but American beef is nowhere to be seen at supermarkets here -- except in Japan's five Costco stores.
Many Japanese are worried about the safety of U.S. beef. Retailers here said they aren't about to waste their time carrying an unpopular product. Instead, meat section shelves are filled with beef from Japan and Australia.
Japan once was the top destination for U.S. beef, importing $1.4 billion each year. But that was before Tokyo's December 2003 decision to ban American beef imports after the first case of mad cow disease in the U.S.
The U.S. government repeatedly has said the beef is safe because of stringent checks. But such assurances have done little to allay the fears of Japanese about mad cow disease, or bovine spongiform encephalopathy, a degenerative nerve disease in cattle.
Eating contaminated meat products has been linked to the rare but fatal human variant Creutzfeldt-Jakob disease in more than 150 deaths. The outbreak, mostly in Britain, peaked in the 1990s.
"It's scary -- all this talk about mad cow disease," said housewife Kimie Suzuki, who eats mostly fish but sticks with Japanese beef when she eats meat. "I've had foreign beef before but it tastes different."
Fears like Suzuki's have grown, not diminished, in recent months.
The ban on American beef was eased in December, but imposed again in January after prohibited spinal bones were found in a veal shipment, an error by U.S. plant workers and a government inspector who didn't realize veal cuts with backbone eaten in the United States are considered at risk for mad cow disease in Japan.
That error was critical, making consumers even more suspicious about the safety of U.S. meat.
Kaori Watanabe, spokeswoman for Aeon Co., said Japan's top supermarket chain hasn't received a single call from customers asking for American beef. Aeon, which operates more than 300 food stores nationwide, often is deluged with requests for products, so that means there's no interest in American beef, she said.
"We decided against it until there's a situation in which customers can buy it without worrying about it," said Watanabe. Shoppers are more interested these days in organically grown vegetables, she added.
Ichiro Tanaka, spokesman for major supermarket chain Ito-Yokado Co., said he's happy selling Australian and Japanese beef because his about 180 stores stopped carrying American beef three years ago.
"American beef hasn't won the understanding of Japanese consumers," he said. "Consumers don't trust it."
Even the 200 stores in Japan run by Seiyu Ltd., a unit of Bentonville-based retail giant Wal-Mart Stores Inc., aren't selling American beef.
A survey by Tokyo-based marketing researcher Intage earlier this month found 54 percent of respondents said they wouldn't buy American beef. A similar survey in December found 45.4 percent or respondents said they wouldn't buy U.S. beef.
Japanese tend to be suspicious about their own government, and some think the government caved into political pressures from Washington, Japan's No. 1 ally, to let in a possibly tainted product.
American beef, at about $11.70 a pound, is a fraction of the cost of Japanese beef, which can cost 10 times that, because of higher labor costs in Japan and the economies of scale at American farms.
Australian beef competes well in pricing against American beef at about the same prices. The Australian cattle industry has jumped right into the opportunity presented by the stumbling of U.S. beef exporters.
The industry is aggressively promoting the safety of Australian beef, noting Australia never had a case of mad cow disease. Australian cattle ranches have switched to feeding cows grain, instead of grass, to appeal to the Japanese palate for fat-laced meat.
Costco Wholesale Japan Inc., a unit of U.S. warehouse retailer Costco Wholesale Corp., is one exception in pushing American beef.
But Costco appeals to the well-traveled Japanese who buy in bulk -- a minority for an island nation more accustomed to small homes and frequent shopping. Still, Costco's entire 5.1-ton first shipment of U.S. beef sold out within 24 hours. Another batch went on sale a week later and is selling well, according to Costco.
"The response and demand for U.S. beef has been overwhelmingly strong," Costco Wholesale Vice President Mike Sinegal said.
The other high profile enthusiast for U.S. beef is fast-food chain Yoshinoya D&C Co., which made its fortune on the beef bowl, a serving of hot rice topped with slices of American beef.
When the chain announced it would serve its final beef bowl in 2004 because of the import ban, crowds rushed to its outlets to devour American beef. But even Yoshinoya has not yet started selling beef bowls, promising the dish will be back in September.
The Japanese government generally has taken a hands-off approach, although it has organized meetings to answer consumer questions about the scrapping of the ban.
"It's not our job to promote American beef," said Health Ministry official Koji Obayashi. "It's OK if no one buys U.S. beef."
This article was published on Monday, August 21, 2006 7:54 PM CDT in Business
By Yuri Kageyama
AP Business Writer
Email this story Print this story TOKYO (AP) -- It's been weeks since Japan ditched its import ban on U.S. beef and the first shipment went on sale, but American beef is nowhere to be seen at supermarkets here -- except in Japan's five Costco stores.
Many Japanese are worried about the safety of U.S. beef. Retailers here said they aren't about to waste their time carrying an unpopular product. Instead, meat section shelves are filled with beef from Japan and Australia.
Japan once was the top destination for U.S. beef, importing $1.4 billion each year. But that was before Tokyo's December 2003 decision to ban American beef imports after the first case of mad cow disease in the U.S.
The U.S. government repeatedly has said the beef is safe because of stringent checks. But such assurances have done little to allay the fears of Japanese about mad cow disease, or bovine spongiform encephalopathy, a degenerative nerve disease in cattle.
Eating contaminated meat products has been linked to the rare but fatal human variant Creutzfeldt-Jakob disease in more than 150 deaths. The outbreak, mostly in Britain, peaked in the 1990s.
"It's scary -- all this talk about mad cow disease," said housewife Kimie Suzuki, who eats mostly fish but sticks with Japanese beef when she eats meat. "I've had foreign beef before but it tastes different."
Fears like Suzuki's have grown, not diminished, in recent months.
The ban on American beef was eased in December, but imposed again in January after prohibited spinal bones were found in a veal shipment, an error by U.S. plant workers and a government inspector who didn't realize veal cuts with backbone eaten in the United States are considered at risk for mad cow disease in Japan.
That error was critical, making consumers even more suspicious about the safety of U.S. meat.
Kaori Watanabe, spokeswoman for Aeon Co., said Japan's top supermarket chain hasn't received a single call from customers asking for American beef. Aeon, which operates more than 300 food stores nationwide, often is deluged with requests for products, so that means there's no interest in American beef, she said.
"We decided against it until there's a situation in which customers can buy it without worrying about it," said Watanabe. Shoppers are more interested these days in organically grown vegetables, she added.
Ichiro Tanaka, spokesman for major supermarket chain Ito-Yokado Co., said he's happy selling Australian and Japanese beef because his about 180 stores stopped carrying American beef three years ago.
"American beef hasn't won the understanding of Japanese consumers," he said. "Consumers don't trust it."
Even the 200 stores in Japan run by Seiyu Ltd., a unit of Bentonville-based retail giant Wal-Mart Stores Inc., aren't selling American beef.
A survey by Tokyo-based marketing researcher Intage earlier this month found 54 percent of respondents said they wouldn't buy American beef. A similar survey in December found 45.4 percent or respondents said they wouldn't buy U.S. beef.
Japanese tend to be suspicious about their own government, and some think the government caved into political pressures from Washington, Japan's No. 1 ally, to let in a possibly tainted product.
American beef, at about $11.70 a pound, is a fraction of the cost of Japanese beef, which can cost 10 times that, because of higher labor costs in Japan and the economies of scale at American farms.
Australian beef competes well in pricing against American beef at about the same prices. The Australian cattle industry has jumped right into the opportunity presented by the stumbling of U.S. beef exporters.
The industry is aggressively promoting the safety of Australian beef, noting Australia never had a case of mad cow disease. Australian cattle ranches have switched to feeding cows grain, instead of grass, to appeal to the Japanese palate for fat-laced meat.
Costco Wholesale Japan Inc., a unit of U.S. warehouse retailer Costco Wholesale Corp., is one exception in pushing American beef.
But Costco appeals to the well-traveled Japanese who buy in bulk -- a minority for an island nation more accustomed to small homes and frequent shopping. Still, Costco's entire 5.1-ton first shipment of U.S. beef sold out within 24 hours. Another batch went on sale a week later and is selling well, according to Costco.
"The response and demand for U.S. beef has been overwhelmingly strong," Costco Wholesale Vice President Mike Sinegal said.
The other high profile enthusiast for U.S. beef is fast-food chain Yoshinoya D&C Co., which made its fortune on the beef bowl, a serving of hot rice topped with slices of American beef.
When the chain announced it would serve its final beef bowl in 2004 because of the import ban, crowds rushed to its outlets to devour American beef. But even Yoshinoya has not yet started selling beef bowls, promising the dish will be back in September.
The Japanese government generally has taken a hands-off approach, although it has organized meetings to answer consumer questions about the scrapping of the ban.
"It's not our job to promote American beef," said Health Ministry official Koji Obayashi. "It's OK if no one buys U.S. beef."