New agreement means exports to Japan will beef up

Virginia beef producers have cause to celebrate, because one of the world’s premier importers has signed an agreement with the United States. Japan will now allow exports of U.S. beef from cattle less than 30 months of age, which is an improvement over old rules that permitted U.S. beef imports only from cattle up to 20 months old. That deal was sealed in 2005 following a total ban in 2003 when a U.S. cow was found to have bovine spongiform encephalopathy.

“Japan is a high-value market for U.S. beef, and any increase in that trade trickles down to farmers in Virginia through increased demand and higher prices for our cattle,” said Spencer Neale, commodity marketing director for the Virginia Farm Bureau Federation. “This agreement was a long time in the making and is part of an ongoing process to regain the market share that was lost after the 2003 ban.

“This agreement shows that the Japanese are regaining confidence in U.S. beef products, which should increase trade opportunities in the whole Pacific Rim.”

In addition to increasing sales for cattle producers, an influx of U.S. beef could lower consumer prices in Japan. That could lead to higher consumption levels, said American Farm Bureau Federation economist Veronica Nigh.

Nigh added that Japan’s imports of U.S. beef plunged by 60 percent from 2001 to 2011. When Japan first imposed the ban in 2003, it had been the largest exporter of U.S. beef, with more than $1.3 billion in sales and 37 percent of total U.S. beef exports.

“Even with this change, we will still fall behind those levels, but this is a step in the right direction,” Neale said. “And while U.S. beef to Japan was restricted, the Japanese increased their beef consumption, so with these new rules we stand to gain even more sales of U.S. beef. It’s a win for all American cattle producers.”

Japan’s food safety organization recently reported that the risk from importing beef from cattle aged 30 months or younger from the United States, Canada, France and the Netherlands would be negligible to human health.