US beef ban offers hope

New Zealand exporters are taking a cautious approach to the renewal of the Japanese ban on US beef.

Last weekend the discovery of spinal cord material in a shipment of US beef prompted the Japanese to re-impose a ban over mad cow disease concerns.

The original two-year ban on US beef dramatically boosted New Zealand exports to Japan, Korea and Taiwan. The local industry had been bracing for a sales slump as US beef was introduced earlier this month.

Although the new ban on US beef is good news for local exporters, industry leaders are far from cheery about the outlook. PPCS chief operating officer Keith Cooper said he was still picking beef prices to fall aggressively this year once the ban lifted.

Some commentators suggest US beef won't be back in Japan before the end of the year. But there is no formal word on how long the new ban will last.