Japan-Imports of US Ox beef.

AUSTRALIA-JAPAN OX BEEF EXPORTS.

Reports on the Japanese economy remained grim this week, with the country’s exports in February falling by a record 49% year-on-year, while imports also dropped, by 43%. Some economists predict that the first-quarter GDP in 2009 may contract by a similar pace to the previous quarter (by 3.3%) due to Japan’s heavy reliance on exports.

While the economic predicament is further tightening consumer spending in Japan, there have been some good retail sales of Australian beef. The Japan Chain Stores Association reported stronger sales of imported beef over domestic products during February, and a 23% lift on last year for Australian beef during the first three weeks of March, as shoppers adopted a ’budget and save’ buying mood (point of sale data, Agriculture and Livestock Industries Corporation of Japan).

Australian beef export prices to Japan were mixed this week, with MLA quotes for chilled grassfed price adjusted down due to reports of lower priced sales. Export demand for trimming items and briskets were relatively firm, while the Japanese trade also noted steady interest in briskets in the Japanese wholesale market.