Japan remains beef stumbling block

By LIAM DANN primary industries editor

New Zealand beef exporters appear to have avoided any fallout from the mad cow disease crisis in the United States.

But despite bans on US beef in Asia, the prospect of Japan removing tariffs on New Zealand beef still looks slim.

A delegation of Japanese Agriculture Ministry officials visited New Zealand last week to assess the industry in the wake of the mad cow scare.

Meat NZ chief executive Mark Jeffries said their response to the safety and quality of New Zealand beef was good. But other than sending a favourable report back to Japanese consumers, the group would have no great influence when the Japanese parliament addressed tariffs in a few weeks.

Movement on tariffs would probably depend on how long the ban on US beef stayed in place.

The upside from the ban in Asia was more likely to come from shifts in consumer perception as more Asians tried the New Zealand product, he said.

Thankfully, there had been no negative impact on New Zealand exports to the US , Jeffries said.

Prices for the lower-grade beef New Zealand exports to the US stayed strong as trading returned to normal after the New Year break.

As of last week, prices were firming, he said.

"The biggest concern we had was US domestic consumption - whether the McDonald's and Burger Kings were going to take a hit.

"They haven't.

"That's been good news for farmers."