American Beef

Presentation for Kanagawa CoopPaul Spencer, U.S. Embassy Tokyo

March 27, 2007

U.S. & Japanese Per Capita Beef Consumption

(kg per year – carcass basis)

0

5

10

15

20

25

30

35

40

45

2002 2003 2004 2005 2006

Current Situation in the United States

• Beef is a major component of the diet

• Consumers confident in regulatory system

• Science-based approach to managing BSE risks

• BSE outbreaks did no lasting harm to market

Current Situation in Japan

• High prices due to limited imports

• Less consumer confidence in regulatory system (both U.S. and Japanese)

• Beef is a not as big a component of the diet

BSE Chronologymid-1980s BSE recognized in UK

1996 UK announces probable link between BSE and CJD

1997 U.S. Food & Drug Administration introduces feed ban

2001 1st case confirmed in Japan; Japan introduces feed ban

2003 1st case confirmed in Canada

2003 1st case confirmed in US

U.S. beef banned from major export markets

Differing Situations

Japan– Number of BSE Cases: 32– OIE Status: Not Determined.

United States– Number of BSE Cases: 3 (one foreign born)– OIE Status: Controlled Risk recommended (to

be voted on in May)

Differing Approaches To Risk Management

Japan– Uses BSE-testing to guarantee food safety– Tests all animals at slaughter regardless of age

United States– Uses BSE-testing for surveillance– Food safety is secured by SRM removal

Selling U.S. Beef In Japan

• Beef only allowed from animals 20 months or younger

• Over 3,500 restaurants and local supermarkets now sell U.S. beef

• Major supermarkets are starting now (Seiyu)

• Supply is the major issue but things are getting better

25.2

22.6

9.1

36.1

7.0would buy if inshops/supermarkets

Would buy with certainmerits (low price/goodtaste/etc.)

Would buy if somepeople around me werebuying

Would buy if mostpeople start buying

Would not buy even ifothers are buying

75% of Japanese Will Buy U.S. BeefN=416

74.8%

Source: MacroMill Web Survey (N=416 ・ Wave 10) Sep 15-17, 2006

Half will buy with certain

basic conditions satisfied.

The rest will buyafter

observing the

situation.

Conditions for Consumers to Purchase US Beef

Top 5 Reasons

1. Japanese Government approves the safety (35.3%) (done)

2. U.S. Government ensures the safety (25.0%) (done)

3. Celebrities & academics agreed about safety on TV & print (25.0%) (done)

4. On the shelves of large supermarkets (18.3%) (done)

5. U.S. producers explain safety (17.9) (in process)

We Care - Web Sitewww.wecare.jp

Enjoy American Beef!