Officials from Australia's Queensland state government are on a four-day trade mission to Japan with a focus on reversing falling beef sales.
Japan is Queensland's third-largest agricultural export market, with beef exports alone valued at A$1.3bn ($855mn) in the 2022-23 fiscal year ending 30 June, according to the Queensland government. The Japan-Australia Economic Partnership Agreement, which came into force on 15 January 2015, gave Australian exporters improved market access for goods and services and improved investment protection.
The Queensland government hopes that its 20-23 November trade mission to Japan, featuring Queensland's minister for agricultural industry development and fisheries Mark Furner, will boost demand for the state's beef exports. Australia beef production in forecast to increase as processors increase cattle kill capacity to accommodate the large herd that has developed over the past three years of good rainfall.
Australia has moved into a cattle herd liquidation state with continuing dry weather, with it experiencing increased cattle turn-off and increased beef production. This has increased volumes needed for exports, so any improved trade flows to Japan will ease the amount of beef kept in domestic Australia storage.
Australia's share of the Japanese beef market by volume has reduced from 51.3pc in 2018 to 25pc in 2022. This followed increased competition from the US, Canada, New Zealand and Mexico, along with herd rebuilding by Australian farmers.
Japan currently has as much as 30pc more imported beef in cold storage than last year, while buyers have slowed their pace of orders as they clear some of the backlog, according to Meat and Livestock Australia.
Live cattle exports to Japan — which were predominantly the Wagyu breed — have halted indefinitely, with the last breeder herd of cattle exported in May 2021. Feeder cattle also followed suit, with exports stopping in November 2022. Japan's buying power has also weakened, after Covid-19 lockdowns weighed on consumer demand in restaurants and a higher cost of living prompted consumers to choose cheaper protein options.
Total cattle exports to Japan from Australia in 2018 totalled 14,455 head and peaked in 2019 at 17,853, according to Australian Department of Agriculture Fisheries and Forestry data. Volumes dropped back to 14,526 in 2020 and to 11,847 in 2021.
