Cattle Exports To
Japan Look ‘Rosy’
(ContiniMd from Pago A 1)
Japanese consumers prefer a
meat that is “well-marbled, no dis
coloration the more marbling,
the more delicious,” he said.
Yamakawa indicated that since
1987 in Japan, there has been a
three-fold increase in beef con
sumption. “This year we can
expect another increase. U.S. beef
will make a big part of the
increase,” he noted.
Together with Todd Kikkawa,
director of operations for Colonial
Beef/Marudai Food Company
who also spoke at the feeder’s day,
the company is backing research to
provide a beef product with
increased marbling. The company
is working with Washington Uni
versity to crossbreed Wyagu
cattle, native to Japan, with Black
Angus from this country. The
Wyagu/Angus breeding program
“will be a very big business,” said
Yamakawa.
About a quarter of the beef raised in Japan is
comprised of Wyagu cattle, but the number of
Wyagu farmers are declining in Japan. Most
farms are small, owned by families, with about
5-10 head of beef per farmer. The number of
farmers are also decreasing, indicated Yama
kawa. That means more demand for American
Wyagu beef.
At the same time, more youth in Japan (tradi
tionally raised on a diet of fish) are eating beef,
at least once a week in a family diet The youn
ger generation, said Yamakawa, is used to eat
ing a lot of hamburgers from “McDonald’s and
Wendy’s.”
Yamakawa indicated this was the first time
he has presented information about his com
pany to any agricultural organization. He spoke
about the difficulties experienced through the
years in importing American beef.
• Under the Old simultaneous buy and sell
(SBS) system, Yamakawa indicated, the
chilled beef market opened to Japan with tight
restrictions. Since the chilled beef market
began, though, the Japanese impressions of
American beef woe made—American beef is
a “high quality beer and they are looking for
only high quality prime or choice.
As general purchaser for his company,
Yamakawa indicated he purchases about
50,000 head of beef from Pennsylvania each
year.
Purchases have increased from 1996 levels,
which were high.
Most beef takes about a month to reach
Japan in chilled containers. A great deal of the
business, according to associate Todd Kikka
wa, is being done through Moyer Packing.
“We prefer a heavy carcass with higher mar
bling,” Kikkawa said.
The director of operations was asked about
the chilled beef box size and the larger cattle.
“As long as we have enough (beef) quantities,
we will make a bigger box,” he said.
Yamakawa told those at the feeder’s day that
buyers for the Japan beef market are still strug
gling with high tariffs on chilled beef (now run
ning 43 percent, but scheduled to drop to 32
percent in the year 2000), and indicated that the
Japanese government needs more pressure by
American growers to reduce the tariff.
In 1996, according to Yamakawa, American
beef exceeded Australian imports into Japan.
Cattle Outlook
There will be no recession in 1997, and this
year will look economically a lot like last year,
according to H. Louis Moore, Penn State eco
nomics professor at the feeder’s day.
The only gray news on the horizon is the
upsurge in consumer credit which worries the
financial industry.
The good news for agriculture is that exports
are rebounding—about 12 percent of the meat
produced in this country goes to the export
market. We are exporting 18 percent of all the
chicken we produce in the country, said Moore.
China is eating more chicken. ‘They want to
eat something other than rice and fish heads,”
Moore said.
“We’re the low-cost producer in the world,”
he said. "This is really good news our
exports are going to continue to increase.”
Moore said, “A strong national
economy is going to help the beef
business this year.” Overall meat
production will increase 1 percent
from 1996 levels, according to
Moore. Beef will increase about 1
percent, while pork will decline
about 3 percent Broilers continue
their steady production rise and
will be up 3 percent from previous
levels. Turkeys will also be up 1
percent.
Cattle futures as of Feb. 1 for
April 1997 stood at $66.82.
Cash price, while not actually
listed, should range from
$64.00-$65.00, Moore noted.
Cattle inventory last July 1 in all SO
states was 1 percent less than the
year before. Dairy stood at 7 mil
lion head and beef at 38 million
head. Jan. 1, 1997 inventories of
cattle stood at 101.2 million head,
down 2.2 percent from last Janu-
(Turn to Pago A 23)
Speakers at the Cattle Feeder’s Day, from left, H. Louis Moore, Penn State econom
ist; Matt Perrier, promotions director tor the Pennsylvania Beef Council; Bill Henning,
Penn State Extension red meats specialist; Martin E. O’Connor, USDA agricultural
marketing specialist; and Tammy Weaver, Industry relations/compllance manager
with the Pennsylvania Beef Council.
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