TOKYO, JAPAN (Tuesday, July 9)—The day began with a briefing
from the USMEF Japan staff on the marketplace and the renewed potential of
American beef since the "less than 30 month" regulation went into
effect and dramatically increased the supply of U.S. beef to Japan.
Taz Hijikata, USMEF Consumer Affairs Senior Manager, shared
some interesting facts:
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| Taz Hijikata of USMEF shares insights on the Japanese consumer marketplace for beef. |
- More than 80% of Japanese consumers shop at the grocery store either every day or every other day, with 23.5% shopping every day for food.
- 50% of women have jobs outside the home.
- Japanese in Tokyo typically live in very small apartments with small kitchens, with little food storage and limited food preparation space/capability.
- Beef commands only about 10% share of the meat market in Japan. Seafood (49%) is number one, with pork (21%) and chicken (20%) taking second and third.
- Japan's per capita use of red meat is roughly one-tenth of that in the U.S., so there is plenty of upside potential.
Since the regulations allowing the import of 30 month or
less beef from the U.S. were lifted in February 2013, Japan is on track to
regain its position as the Number One importer of U.S. beef. In fact, imports are expected to exceed $1 billion in value
in 2013—up from practically zero in 2006.
In the ten years since the incidence of BSE in the U.S., there
has not been an adequate and reliable beef supply from the U.S. to Japan. Consequently, the Japanese consumer has
forgotten the delicious difference of U.S. beef. (Consider that
a 26-year-old female consumer today was a teenager when American beef virtually
disappeared from the marketplace.)
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| Kyle Cantrell and Doug Parde look over some of the U.S. beef promotional materials that have been developed by USMEF. |
When put to the taste test, American beef wins every time.
In November 2007, only 22.9% of consumers said they would buy U.S. beef. In March 2013, that number had risen to
65.1%.
Capturing the female consumer
is key to success of regaining the U.S. beef market in Japan. USMEF has been aggressively promoting
the increased availability through its "juku" campaign—a word that means
both "delicious" and "immediately available/ready." The USMEF campaign declares the advent for more U.S. beef as
a "wonderful moment" for the Japanese consumer.
To that end, USMEF has been
extremely successful in gaining attention for U.S. beef. Media news coverage has been very
positive, resulting in the equivalent of more than $1.5 million of
exposure. A sweepstakes
campaign, running from June through August in partnership with 1500 retail
outlets, is gaining widespread involvement—with the winners receiving American
beef products.
Dean & Deluca, a high-end
retailer, has switched from Aussie beef to U.S. beef. Several large retailers have begun to add more beef to their
meat cases. In fact, the top
three grocery stores in Japan carry U.S. beef.
USMEF is also attempting to
change the beef serving habits of Japanese consumers. Currently, Japanese families typically slice beef into very
thin strips and cook it with vegetables and other ingredients to serve. USMEF is working to get consumers to
buy larger, thicker cuts of American beef, cook those cuts in one piece, and
then slice and serve at the dinner table.
USMEF is also pointing out
that the U.S. has a grading system for its beef, unlike any other major beef
supplier to Japan. With the
new 30-month rule, they are promoting that the best of the best of U.S.
beef—and more of it—is now available to Japanese consumers.
Another important point: Japan readily takes cuts of beef that
do not sell well in the U.S.
Tongue, intestines, and other "variety meat" cuts are desired
in Japan—
and that adds considerable value to a U.S. beef carcass.
For example, beef tongue, which brings about $1.50/lb in the U.S., will garner $7 in Japan. Intestines that go for 50 cents/lb. in the U.S. will command $2 in Japan. Together, these two products alone can account for $330 million in export sales to Japan—and more cattle available will mean American beef producers can meet that demand.
and that adds considerable value to a U.S. beef carcass.
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| Mark Jagels, Nebraska Corn Board director and chair-elect of USMEF, addresses a group of 50 Japanese beef buyers. |
For example, beef tongue, which brings about $1.50/lb in the U.S., will garner $7 in Japan. Intestines that go for 50 cents/lb. in the U.S. will command $2 in Japan. Together, these two products alone can account for $330 million in export sales to Japan—and more cattle available will mean American beef producers can meet that demand.
The mission team also sat in
briefly at a "purveyor" information session sponsored by USMEF, which
attracted some 50 beef buyers who sell to restaurants and hotels. Attendees included Cargill, Tyson
and other major companies.
Mark Jagels of Davenport, member of the Nebraska Corn Board and
chair-elect of USMEF, made brief remarks to the group—thanking them for their
support of and confidence in U.S. beef.
The Nebraska group felt that
USMEF has a great plan to recapture the Japan market for U.S. beef—and that
USMEF is very fired up about the potential. The numbers are playing out as Japan looks to again
become the largest importer of great-tasting U.S. beef.
