Iowa Farmer Today

OMAHA, Neb. (AP) -- U.S. beef producers are eager to resume trade with Japan and other nations because exports used to account for 10 percent of beef sales every year.

Now that Japan has partially lifted its ban on U.S. beef, trade can resume there, but analysts say restoring sales to pre-ban levels and regaining the trust of Japanese consumers will be a slow process.

“The Japanese consumer likely has a lot of questions about the safety of the U.S. product,” said Darrell Mark, an agricultural economist with the University of Nebraska’s Institute of Agriculture and Natural Resources.

IN ADDITION to the original fears of BSE (mad-cow disease) that prompted Japan and other countries to ban U.S. beef in 2003, some Japanese officials questioned the safety of the U.S. product.

This concern was heightened after backbone was found in a January shipment, prompting the latest six-month suspension of trade.

U.S. officials and industry representatives maintain there is no reason to question the safety of U.S. beef, and groups like the U.S. Meat Export Federation have started trying to convince the Japanese of that.

The export federation stayed in touch with Japanese customers throughout the trade talks to let them know about new procedures and safety precautions that had been adopted, federation spokesman Lynn Heinze said.

The next step will be a promotional campaign to let Japanese beef importers and consumers know U.S. beef producers care about the safety of their product, Heinze said.

Japan briefly lifted its ban in December before reinstating it a month later.

THE BEEF trade with Japan is so important to the industry because it used to be the top export market for U.S. beef.

About $1.4 billion of U.S. beef was sold in Japan in 2003.

Beef producers from Australia, New Zealand and South America have moved into the Japanese market since 2003.

But, Heinze said less beef is being eaten in Japan today than before the BSE scare.

Heinze said before the ban, beef accounted for about 5 percent of the protein consumed in Japan.

Now, beef accounts for only about 3.5 percent of the protein the Japanese eat.

“We not only have to compete with Australia and New Zealand but we have to raise the water for all ships,” Heinze said.

OPINION POLLS by the export federation in Japan show that less than 10 percent of consumers there say they’re confident the USDA’s inspections will ensure beef is safe.

But, Heinze said even at the height of U.S. beef sales to Japan only about 20 percent of Japanese consumers expressed confidence in USDA inspections.

The export federation expects it will take three to four years to return to normal levels of trade in Japan, Heinze said.

AFTER THE U.S. beef ban was partially lifted July 27, Japanese importers said their clients weren’t rushing to place orders.

Pete McClymont, president of the Nebraska Cattlemen, said he’s looking forward to full trade with Japan because before the 2003 ban, Nebraska sold about $300 million of beef products annually to Japan.

“We will be more pleased after we know the first load has been received in Japan and after multiple shipments prove Japan is sincere about being a fair trading partner again,” said McClymont, who owns a feedlot near Holdrege.

The Nebraska organization, as well as processors like Tyson Foods Inc., have criticized Japan for accepting only beef from cattle less than 20 months old.

Japan’s restriction will limit the beef that can be shipped there and producers must take extra steps to document the age of cattle.

Beef from cattle up to 30 months of age is accepted in the United States and most other countries.

Japan wants the 20-month cutoff because infection levels from BSE are believed to rise with age.

Mark, the ag economist, estimated restoring the beef trade with Japan to 2003 levels would add $4 to $6 to the price for every 100 pounds of beef sold.

But, he’s not sure how long it might take to meet that goal.

“It’s going to take months or years until we get back to that point,” Mark said.

These days, exports account for only about 5 percent of all U.S. beef sales, which is half of the pre-ban figure, Mark said.