10-20 FB Beef Trade

 Japan….what do beef producers do with Japan? It’s a conundrum but there may be hope. I’m David Sparks and I’ll be right back to explain. In fairness to Japan (and I’m strictly limiting the conversation to the world of beef), they did introduce us to Kobe beef, a type of beef that is so well marbled that it goes right off the charts for Prime grading in any other country. However, land and grain are expensive in Japan. So what is happening is that the beef production houses in Kobe have been contracting out to other producers to custom raise their cattle for them. Now the conundrum I just discussed. Japan has continued to reject the call to take U.S. beef from animals older than 20 months of age. And the problem is made very difficult to solve because of some instability at the Ag Ministry in that country. Now, there might finally be a chance to get some movement on the issue. National Cattlemen’s Beef Association Chief Economist Gregg Doud notes every time the U.S. has had discussions with a Japanese official on the subject – and some promises are made to begin a process to look at the issue – another Ag Minister is gone – and so are the promises made to U.S. negotiators…”We’ve had a revolving door at the ag ministry, we haven’t had anybody to talk to. Now we have a situation where we have no more elections in Japan and this guy should be in place for a while.” And with stability, we can build relationships. Relationships are always good for business including the beef business.