Japan's Pork Demand Holding Up

WASHINGTON - Mar 1/06 - SNS -- Japanese demand for pork is expected to remain relatively strong across much of 2006, because of negative consumer attitudes toward beef stemming from the second ban on imports of U.S. product, suggests the U.S. agricultural attache for the country.

If U.S. beef trade is resumed after the second quarter in 2006, a relatively small replacement of pork to beef is initially expected in the beginning of the second half of 2006. Some of Danish and E.U., U.S. and Canadian frozen pork cuts temporary used in the food service sector for alternative dishes will be partially replaced with beef dishes featuring U.S. beef cuts again.

However, after US beef demand increased, the retail demand for domestic pork and U.S. chilled pork will start to fall. This, coupled with a projected increase for domestic production in 2006 will certainly put downward pressure on market prices of the domestic pork toward the end of the year (see the section on domestic pork production). The situation may likely trim some of the import demand for U.S. chilled pork later this year, too.

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