Beef imported from Australia competes directly with domestically-grown Holstein beef, the Ministry of Agriculture, Forestry and Fisheries said Tuesday, April 1, indicating that the ongoing negotiations on the Japan-Australia economic partnership agreement should focus on minimizing the impact on Japan’s Holstein cattle breeders.
In a meeting of the Diet’s Lower House agricultural committee, the ministry said the retail price of Australian beef was JPY203 per 100 g in fiscal 2012, JPY100 lower than domestic Holstein beef whose price was JPY303.
Responding to a question by Hiroki Hayashi, member of the new opposition party Yuinotoh, the ministry explained that in terms of average wholesale prices of domestic beef in fiscal 2012, Japanese beef steers ranked highest with JPY1,741 per kg, followed by JPY1,000 for crossbred (F1) cattle and JPY685 for Holstein bulls.
The ministry’s Agricultural Production Bureau Director-General Kazuo Sato said Holstein bulls are roughly in the same price range as Australian beef, adding that it is necessary to watch carefully the future outcomes of this issue.
The ministry also pointed out that Australian beef competes with American beef as well, and that American beef is recovering its share in Japan’s beef market by taking over the share of Australian products. It is said that Australian negotiators are urging Japan to reduce tariffs on Australian beef in the EPA in an effort to gain the upper hand over the United States.
(April 2, 2014)