American beef exports to Japan thunder out the door in Tokyo

CHICAGO - Sales of US beef to Japan are off to a fast start, with 500 tonnes sold since the market reopened on July 27 and three stores in Tokyo selling out of their offerings this week, US industry sources said yesterday.

"To me that is a sign that beef exports to Japan may make a much quicker comeback than we previously thought," said Dan Vaught, livestock analyst with broker A.G. Edwards.

Japan closed its border to US beef when a case of mad cow disease was discovered in a Washington State cow in December 2003. Except for a brief reopening in December, Japan's market stayed closed until two weeks ago when officials accepted measures to verify the safety of US beef.

Analysts were also worried that it would be difficult for US beef to displace Australian and New Zealand beef, which filled the void in Japan when US beef was banned.

Livestock and meat analysts had predicted that US beef sales would be slow to resume due to lingering consumer concerns in Japan. But those fears appear to be unfounded.

"That initial shipment sold out in one day and Costco is awaiting additional shipments," said Cheryl Kamenski, spokeswoman for the US Meat Export Federation.

The federation, which develops overseas markets for US meat, said this week that about five tonnes at three Costco stores in the Tokyo area sold out on the first day and shoppers lined up to taste samples.

- REUTERS