Japanese Beef after TPP

The Trans-Pacific Strategic Economic Partnership Agreement (TPP) now inked and operative, Japanese beef has a string of problems to tackle. While the general public is inclined more to leaner meat for health reasons, marbled beef is still strong in demand and livestock farmers have to weigh contradicting factors in drafting their production plan.

Now, the latest data show the price of home-produced beef is gradually rising on account of shortage of supply due to a decrease in the population of dairy farmers high-quality wagyu. Customers are drifting to less costly domestic beef. The TPP agreed on, low-priced imported beef could also shift the attention of customers away from domestic beef.

The so-called home-produced beef sold at general supermarkets are of dairy cattle, different in quality, for instance, from the so-called wagyu like Matsuzaka and Kobe. The meat of dairy cattle, Boston butt, sells for 500 - 600 yen per kiko, 20-23 % higher than a year ago.

In Metropolitan Tokyo, the wholesale price of dairy cattle Boston butt is 20% higher than last year at 2,300 yen per kilo, round up by 30% at 1,800 yen per kilo. On the whole, the prices are higher by 20-23 yen than last year.

Quality wagyu is rising in price but falling in population as livestock farmers are fast aging. In fact, the total head of calves handled has dropped by 10% over the past 5 years. The wholesale price has risen by 10-20% in a year.

Among the so-called home-produced beef is a crossbreed between wagyu and dairy cattle and rather well received as an alternative to wagyu, Not a few dairy farmers give priority to crossbreeding and there is a strong possibility of dairy cattle falling in production.

If the high-rice trend should persist, customers could turn to low-priced imported meat. Lean dairy cattle is closer to the US and Australian beef in meat quality. In fact, Australian beef is used as part of best bargains at the supermarkets.