Posted Feb. 26, 2010
Japan reinforced its position as a key trading partner for the U.S. pork industry in 2009, clearly outperforming the market and either maintaining or increasing U.S. pork imports even as total retail and foodservice spending in Japan slumped in the global economic slowdown.
The United States Meat Export Federation reports that in calendar year 2009, U.S. pork sales in Japan – our top market for pork export value – nearly matched the all-time value record set one year ago ($1.54 billion verses $1.545 billion in 2008).
While that fact may not seem astonishing, consider that the global pork industry slumped 15 percent in 2009 versus the year prior, and Japan’s supermarket sales dropped 4.3 percent, reaching a 21-year low of 12.83 trillion yen (about $142.6 billion). At the same time, Japan’s foodservice sales dropped 1.5 percent – the first decline in the past six years.
“Because of its strong currency and financial stability, there has been a tendency to think of Japan as an oasis in the global economic downturn,” said Philip Seng, president and CEO of the U.S. Meat Export Federation (USMEF). “But make no mistake about it, Japan’s retail and food service sectors have faced serious challenges in recent months. One of the keys to growing market share for U.S. pork in this economic environment has been to meet these challenges with products that deliver tremendous versatility and value.”
U.S. pork has gained traction with Japanese consumers preparing traditional winter dishes such as nabe (hot pot) and stewed pork favorites kakuni and nibuta. Through the end of February, USMEF is conducting major winter retail promotions showcasing U.S. pork loin, belly and CT butt as featured ingredients in these popular dishes. Support for these promotions is provided by the Pork Checkoff and USDA’s Market Access Program (MAP).
A strong presence in the processing sector also is critical to the success of U.S. pork in Japan, which is why USMEF maintains close relationships with the country’s leading processors and distributors. Nippon Ham, Japan’s largest meat distributor and sausage manufacturer, prominently featured U.S. pork at its mid-January product showcase in Tokyo and at six similar regional events. In late January, a wide range of U.S. items were also promoted by Ito Ham, Japan’s second-largest meat distributor, during its product showcase. With support from the Pork Checkoff programs, USMEF provided point-of-sale materials for U.S. pork for each of these events.
The United States now holds 46 percent of the imported pork market share in Japan (up steadily from 30 percent in 2004) and 72 percent of the chilled pork market.
“Japan will always be a destination for the finest cuts of U.S. pork and beef,” said Seng. “But obviously when you’re facing tough economic conditions, it’s important to feature products that appeal to a wide range of consumers. The U.S. meat industry’s ability to deliver products of tremendous quality, value and versatility has been critical to the success we are seeing in Japan.”
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