Approved by USDA’s

www.ers.usda.gov A Report from the Economic Research Service Japan imports large amounts of beef, primarily from Oceania and North America, and its consumers are willing to pay a premium for heavily marbled, grain-fed beef. As a result, Japan’s import of certain beef cuts and offal raise the value of U.S. cattle. Trade bans resulting from the discovery of bovine spongiform encephalopathy (BSE) in North America dramatically shifted beef supplies to imported beef from Australia and New Zealand. Beef consumption in Japan may increase from current levels in Japan’s market, particularly if prices fall or income rises, despite a declining popula-tion. Economic factors, demographic factors, import and domestic policies and regula-tions, as well as consumer tastes and preferences, will determine the outlook for beef consumption in Japan and the ability of U.S. beef to compete in that market. Japan’s domestic beef production relies upon imported feed, primarily from the United States, to feed specifi c breeds energy-intensive rations. Government support plays an impor