JAPANESE IMPORTS Beef Lucrative But Elusive Market

Press, Volume CVII, Issue 31497, 11 October 1967, Page 30

JAPANESE IMPORTS Beef Lucrative But Elusive Market

(By DAVID ZXEL. N.Z.P.A. Stag Correspondent)

TOKYO, October 10.

One hundred million Japanese offer New Zealand a potential market in a field much wider than the traditional pattern of lamb and dairy produce. In particular, beef is seen by the Japanese as a high-quality meat worth paying for at sometimes astounding prices.

The best-quality beef for use in such Japanese dishes as sukiyaki comes traditionally from Kobe, where each individual animal is nurtured with frequent massages and (so the story goes) a diet which includes brandy.

New Zealand would possibly find it difficult to break into this exclusive market. But any good-quality beef fetches top prices from Tokyo consumers.

So far. the bulk of New Zealand’s beef exports to Japan has been in manufacturing meats rather than in the “good average

quality” beef which is sold on other markets.

Beef cattle production in Japan has fallen since 1963 b' more than a third, while demand has risen steadily. The fall in livestock numbers is a by-product of the movement of Japanese from rural to urban areas—a drift which has not yet ended —in an attempt to find a share in the prosperity boom being enjoyed by secondary industry. The ready-made market for beef is a glittering prize for any primary producing country But it is a market which

so far has been of limited value to New Zealand. Imports are tightly controlled by the Livestock Industry Promotion Committee. Such cracks as appear in the door from time to time tend to favour Australian rathei than New Zealand exploitation. Tenders Called A few weeks ago for intance, the L.I.P.C. called tenders for 6000 tons of beef. But New Zealand has little beef on hand at this time of the year (super-promptness is demanded in delivery) while Australian meat works are killing at precisely the right time. Beef imports are “a highly political issue,” according to several traders and government officials, and no abrupt change in the method of coping with Japan's fast-rising internal demand is seen as likely for many years. “Still,” said one importer, “this last tender was 40 per cent more than last year’s allocation. I think there is no real reason for pessimism.”

Not Bright

Last year, according to New Zealand Meat Board figures, New Zealand exports of beef and veal to Japan totalled more than 3000 tons, compared with more than 10,000 for Australian exporters. Largely because of supply problems linked with the differing killing seasons, the outlook is not bright for a reversal of the position as long as the Japanese Government maintains its present system of controls. The present system leads to variable sizes of tenders being called late in the year, the 6000-ton tender called in late September, for instance, was originally scheduled to be called in March.

No Evidence

Mr M. McSporran, senior New Zealand Meat Board representative in Japan says: “There is no evidence to suggest that control of beef imports will be lifted in the foreseeable future. In addition, there is a heavy tariff rate on beef (about 25 per cent) plus a levy of—usually —between 10c and 16c per kilogram.” Nevertheless, the fact that opportunities exist in the beef trade—through the efforts of exporters in the immediate future and, in the long term, through diplomatic

attempts to break down trade barriers—is realised by the Meat Board and by at least a section of the New Zealand meat trade. Three Managers In Japan last week were the general managers of three New Zealand meat companies: Mr J. C. Scandrett (Southland Frozen Meat), Mr L. A. Cameron (Gear Meat Company), and Mr W. M. Cleland (New Zealand Refrigerating). All members of the Towers group of companies, the three were making a survey of the market. “We are sure that trade between New Zealand and Japan will further increase,” said Mr Cleland. “We have made calls on all main importers and. a number of manufacturers to And the requirements of the customers so we can organise our production system in New Zealand to fulfil those requirements,” he said. “We are interested in developing markets in Japan for all types of freezing works by-products—that is, slipe wool, sheep and lamb pelts, hides, tallow, sausage casings and meat and bone meals.”