Japan And Canada Strike Beef Deal

No bull, Canada and Japan have struck a deal to expand market access, which essentially means greater opportunities for Canadian beef producers.

As of  February 1, 2013, the two countries have expanded market access to Canadian beef to cattle under 30 months of age.

The current requirement only permitted beef exports from animals under 21 months of age.

Cool, Japan - you now can get Canadian cows that are nine months older. That's good right? I suppose it allows the veal a chance to stop being veal.

This expanded access is expected to double the potential market value of Canadian exports to Japan reaching up to $150 million annually.

According to Canada Beef Inc., this market expansion is 'well-timed'. The Canada Beef company is the cattle producer-funded and run organization responsible for domestic and international beef and veal market development.

Through a press release, Canada Beef says that by amending the import requirements by raising the allowable cattle age, it will allow Canadian exporters to offer a steady supply of Canadian beef year-round, while providing Japanese trade partners the security of supply they need to make long-term commitments to Canadian beef.

Supplying only beef from cattle under 21 months of age on a year-round basis presented a significant challenge for Canadian producers, as the majority of Canadian calves are born in the late winter and early spring, thus limiting the amount of beef from cattle that could qualify for export between December and April.

For Canadian beef producers, the Japanese market is highly valuable.

During the past few years, Canadian beef shipments to Japan have ranged between 15,000 to 16,000 tonnes, valued between $70 to $75 million per year, far less than the expected increase to $140 to $150 million per year.

But that should change soon enough.

Where's the beef? We got your meat right here, eh!

Cheers

Andrew Joseph