Australian gloom at confirmation of Japanese BSE case

01/10/2001

There was a growing sense of resignation in Australia last week surrounding Japan’s first confirmed case of BSE, and the likely impact this will have on exports of Australian beef to the country.

Japan is currently the Australian beef export industry’s most valuable market, accounting for A$1.7 billion ($832 million) of the industry’s total A$4 billion turnover. Last year, Japan took 25% of Australia’s entire beef output while Australian beef now accounts for 30% of all imported beef consumed in the country.

Though Australia is BSE-free, the fear now is that the Japanese consumer’s rejection of beef in the wake of the recently confirmed case will inevitably extend to Australian imports.  Early signs that this might happen have proved inconclusive, however. In a survey conducted among 30 Japanese retailers last week, Australia's meat export marketing authority, Meat & Livestock Australia (MLA), found that consumer demand was by and large holding up well, with only a few respondents reporting a downturn in demand.