Japanese Poultry Demand Shifts to Prepared Poultry

Japan is one of the world’s largest importers of poultry meat. In 2005, Japan imported 763,636.4 MT of fresh, chilled, frozen and preserved poultry meat, almost 40% of domestic consumption. Imports were valued at nearly $2.02 billion. Japan's total broiler consumption in 2006 is projected to be about 1.88 million MT, unchanged from 2005.

Prior to the outbreaks of high path avian influenza (HPAI) in East and Southeast Asia at the end of 2003, Thailand and China were Japan’s major suppliers of poultry meat and prepared poultry, followed by Brazil and the United States. After the HPAI outbreaks in China and Thailand, Japan banned imports of fresh, chilled or frozen broiler meat from those countries, later only allowing cooked product from MAFF designated plants under a bilateral health protocol worked out in 2004. There are currently 49 plants in Thailand and 35 plants in China designated by MAFF for exports to Japan of cooked products.

Brazil has become the principle supplier of fresh, chilled, and frozen poultry meat to Japan. However, U.S. gains were limited due to constraints on the ability to constantly supply the bulk of "boneless cuts - leg meat" as Brazil does. An animal health protocol worked out last year between U.S. and Japan on heat-processed poultry mat and liquid heat-treated egg products should allow the U.S. to be able to ship the pre-cooked products irrespective of AI status such as an import ban on generic meat due to HPAI. To date, the final implementation of the protocol is pending. In Japan there is a perception that people can contract bird flu by handling any poultry meat. This perception triggered Japan’s shift away from all poultry meat, but especially fresh, chilled, or frozen poultry meats. As people became aware that cooking meat kills the HPAI virus, consumer demand for prepared and preserved poultry meat increased, and Japanese importers responded by increasing the quantity of imported prepared, pre-cooked poultry meat.

Japan’s total imports of cooked poultry meat preparations initially dropped sharply from 59 million pounds in December 2003 to 2.5 million pounds in March 2004, in a first response to HPAI outbreaks. However, Japan’s imports of cooked poultry meat preparations recovered rapidly to exceed their pre-HPAI outbreaks level.

The increase of imports of cooked poultry meat preparations were likely needed to rebalance Japan’s domestic demand for poultry meat, given that lower quantities of uncooked poultry products (fresh, chilled, or frozen poultry meat) were being imported. In December 2005, imports of poultry meat preparations amounted to 73 million pounds, and for all of 2005 total imports were 44 percent higher than those in 2004.

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Source: USDA's Agricultural Marketing Service - 21st March 2006