U.S. drought and weak yen lift Japan’s beef import costs
TOYOTA — Japanese wholesale prices for imported beef have hit the highest level since the market was opened up in 1991, as a drought in southern U.S. states curtails supply, prompting restaurants to weigh price hikes.
Domestic wholesale price of U.S. belly meat used in beef bowls and other dishes is currently between 1,080 yen and 1,200 yen ($7.13 and $7.92) per kilogram, up 38% from the same period last year. With the weak yen also driving up costs, the price surpassed the previous high reached in 2014.
Sixty percent of beef sold in Japan is imported. U.S. beef, which accounts for 40% of the imports, is used primarily by businesses, such as beef bowl chains and grilled beef restaurants.
Reduced U.S. beef production is the biggest factor for the price spike. The number of cattle being raised in the country is in a natural cyclical decline. And the drought in the South exacerbated the drop by reducing grass that cattle feed on.
According to the U.S. Department of Agriculture (USDA), the cattle inventory was 87.157 million head as of Jan. 1., the lowest level since 1951. Drought triggered the spike in prices in 2014, but the inventory decline is more significant this time.
Local producers are reducing exports to meet the U.S. appetite first. U.S. beef exports totaled 1.37 million tonnes in 2023, down 14% on the year. The USDA is forecasting a decrease of 8.3% to 1.26 million tonnes this year.
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