While the easing of the yen over the last three months certainly added momentum in Japan’s export sector and lifted confidence in the stock market, it also significantly increased the cost of imported products, including beef.
As a result, beef imports from all key suppliers including the US were down during February, with frozen beef shipments accounting only 77% of the previous year’s total, at 16,645 tonnes swt.
Positive sentiments caused by the relaxation of US beef import protocols to cattle up to 30 months are likely to have assisted the chilled beef intake from the US (up 5% from last year to 5,125 tonnes swt), while frozen beef volumes were rather subdued (down 11% to 5,884 tonnes swt).
US prices remained strong during February, with the CIF value averaging 605 yen/kg for chilled shoulder/round cuts (up 16% from a year ago) and 421 yen/kg for frozen brisket (up 31%).
Japan’s Agriculture and Livestock Industries Corporation (ALIC) forecasts that March import volume will increase 3% year-on- year to 38,400 tonnes swt, primarily on the back of increased supplies from the US.
