AMES, Iowa — As the largest importer of U.S. beef, Japan’s agriculture officials told Iowa cattle producers during a recent trade mission they expect reliable access to a steady supply of high-quality U.S. beef, having felt repercussions from controversy over the slowdown of West Coast ports.
"During our schedule, we met with the high-level executives of the four major Japanese meat companies and they all expressed interest in continuing to buy U.S. beef, even as the questions of price became part of the discussion," said Steve Rehder, who accompanied Connie Richards, both Iowa cattle producers, on the Iowa Meat Trade Mission to Japan Feb. 14-20.
Both are directors on the Iowa Beef Industry Council, and went with representatives from the Iowa Economic Development Authority, the Iowa Cattlemen’s Assoc., the Iowa Pork Producers Assoc. and the U.S. Meat Export Federation (USMEF). Partial funding for the trade mission was provided by the $1-per-head beef checkoff. Shortly after Rehder and Richards returned home, on Feb. 23 a tentative agreement was reached easing a contentious labor dispute between ports employers and workers. But Rehder said the extent of the slowdown during the dispute has put shipping issues from those ports at least six weeks behind schedule.
"The question of reliable access to supply was prompted by the slowdown at West Coast ports," he said. "Each company literally led off asking questions about the port dispute that was limiting the U.S.’s ability to export chilled beef into Japan’s value-added market."
While the price of beef is challenging as the United States rebuilds its cow herd, Richards said American beef has continually displaced Australian beef, which has been the main competitor for Japan in recent years.
"The Japanese business leaders that we met focused their discussions on the relationship we have maintained with them over several decades," said Richards, who owns both a cow-calf operation and a small feedlot she operates with her family. "While we build more import opportunities by increasing our inventory at home, maintaining and strengthening our relationships will continue to be the means by which U.S. beef remains a significant consumer option in Japan."
While Japan continues to remain on top of the U.S. beef export list in both volume and value, the United States has continually captured additional market share there by exporting 183 percent of the volume it shipped just five years ago – displacing Australian product – according to Matt Deppe, chief executive director of the Iowa Cattlemen’s Assoc.
He said beef consumption in the Japanese market has been up 1.6 percent over the last five years. "If we can maintain uninterrupted supply of U.S. beef to the Japanese market, while reducing import tariffs through a successful Transpacific Partnership trade agreement, it will be a win-win situation," he said. "It will grow market opportunities for the U.S. producer and establish even better price points for the Japanese consumer."
During the mission, representatives from USMEF outlined several consumer promotion events at various retail outlets for U.S. beef, which are partially funded by the beef checkoff. "It was interesting to me that while the Japanese consumer is very quality- and price-conscious, there’s a very strong interest by the older population, as well as young families, to purchase leaner cuts," said Richards. "This trend is similar to what we’ve seen in the U.S. in the past decade, and a demand we can certainly fulfill without sacrificing quality."
Rehder added, "It was great to see how our beef checkoff investment in the U.S. Meat Export Federation opens up our opportunities, even when we’re at home producing the product. U.S. beef exports to Japan alone added $66.45 to the value of a fed steer this past year. That’s a strong return on investment in my book, any day."