CALGARY — If the first quarter of 1994 is any indication of what the beef export market will be like for Canada this year, producers can pat themselves on the back.
And now that Canadians are starting to make some serious progress with Japanese beef buyers, they can expect continued growth for all kinds of beef products in the retail and food service industry.
Preliminary numbers from Agriculture Canada indicate beef exports as of April 2 to the United States were up 42 percent. For Japan, there was a 95 percent jump in exports. That translates into 39.2 million kilograms to the U.S., compared to 27.5 million kg for the same time last year. Japan took 1.4 million kg so far this year over the 715,000 kg for the first quarter of 1993, said Anne Dunford of the livestock market analysis firm Canfax.
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These two nations take 99 percent of what Canada offers to the world. Especially good news is that the Americans are buying 80 percent high-end beef. The remainder is lower quality boneless cow meat used by processors for products like processed meats and sausages.
The success in Japan is partly due to lowering tariffs, but also it’s that Canadians have become regular players in the Pacific Rim.
“Japan is a market that you break into very slowly. Once you get business done, it’s easier to get business there the second time round,” Dunford said.
Increase to Japan
The Canadian Beef Export Federation reported substantial increases to Japan for 1993, particularly at the retail end and food service industry.
Using Statistics Canada’s final figures, $26.1 million worth of beef was shipped to Japan in 1993. That was 5.9 million kg, a 30 percent increase over 1992.
But it’s what the Japanese are buying that makes this buying frenzy interesting.
Because of improved technology Canadian exporters are able to ship fresh, chilled beef via surface freight with a shelf life of 60 days. It takes about 30 days to get to Japan, leaving another 30 days to distribute and sell it.
“We’ve seen a 58 percent increase in the export of fresh boneless and bone-in beef to Japan. That is a major breakthrough,” said Ted Haney, director of the beef export federation.
