Japan-Decline in demand for imported beef.

Reserved interest from Japanese buyers

Low-key trading with Japan continued this week, but reduced production by some processors led to a slight increase in chilled beef export prices. Yet, most Japanese buyers were not in a hurry to commit, as they seem to hold sufficient beef stocks in the current sluggish market.

Demand for Australian beef was mixed in the Japanese wholesale market this week, although interest in some lower value items remained firm. The trade expects gradual improvements in prices from now on, due to an uplift in seasonal demand, combined with anticipated tighter supplies from Australia.

The Japan Foodservice Association reported a 1.3% decline in overall foodservice sales during January 2008 year-on-year. Sales in the yakiniku (Japanese/Korean style barbeque) sector were stable (up 1% on 2008), while fast food sales increased by 2.2%.