Bord Bia’s trade mission to Japan and South Korea comes at an important time for Irish exporters. The recent signing of the Japan European Economic Partnership Agreement (JEEPA) in February will see the removal of up to €1bn paid in tariffs and duties annually by EU companies exporting to Japan. The agreement is the biggest and most advanced bilateral trade deal ever negotiated by the EU, covering 600m people. Japanese tarrifs on EU beef reduced from 38.5% to 27.5% on 1 February, and further reductions until 2033 will bring them down to 9%.

Exports

Japan has a population of 127m and with growing affluence, exporting opportunities are increasing. In 2018, Ireland supplied a total of 15,647t of beef and pork to Japan. Beef exports to Japan are growing strongly, up by 4.8% to €3.6m in 2018. Ireland exported 765t of beef offal and 67t of fresh and frozen beef.

Domestically, Japan produced 800,000t of beef in 2018, falling short of its 1.3m tonne consumption need

In volume terms, 85% of Ireland’s beef exports to Japan were in the form of tongue, a significant success story. Gyutan Negishi owns a chain of 35 restaurants in Tokyo that serve Irish beef tongue and promotes its origin on its menus. The main competition in the beef market comes from Australia and the US, who have the advantage of proximity, established markets and price.

Beef consumption has grown steadily in Japan since 2015, from 9.25kg per capita to 10.2kg in 2018. Further increases are predicted into 2023 as the Japanese move to a more westernised diet. Domestically, Japan produced 800,000t of beef in 2018, falling short of its 1.3m tonne consumption need. Domestic production is expected to reduce by 1% per annum.

After the US and China, Japan is the third largest importer in the world. The US and Australia currently dominate Japanese imports with a 42% and 49% share of the market each.

“The opening of Bord Bia’s new office, co-located in the Irish Embassy in Tokyo, supports our industry’s ambition for Japan and the wider potential of the Asia region forecast by Foodwise 2025.”

– Minister for Agriculture, Michael Creed.

“In Ireland we have some of the strictest food safety, animal health and traceability laws in the world. Some people say at home that we know more about our cattle than we do about our people.”

– Paula Barry Walsh, deputy chief veterinary officer, Department of Agriculture.

“The market structure for Japanese beef is made up of 57% imported beef and 43% domestic production, of which 21% is Wagyu beef. The food service sector is a very important destination for beef, with 57% of beef sales through this channel and 28% sold through retail channels. Domestic production is declining at a rate of 1% per year with the deficit being made up with imported meat annually.”

– Chisa Ogura, Meros Consulting.

“The removal of the 30-month age restriction means all Irish beef is now able to enter the Japanese market. This reflects the positive engagement between Ireland and Japan and the move is in recognition of our strict controls.”

– Sinead McPhilips, assistant secertary general, Department of Agriculture.

“Make sure that Japanese customers and buyers realise Ireland’s commitment to membership of the European Union. Because of Ireland’s membership, Ireland is a stable, safe, secure and predictable market to do business with. These are all very important attributes for Japanese businesspeople. Brexit is seen as a huge negative from a business and government point of view in Japan.”

– Paul Kavanagh, Irish Ambassador to Japan.

Access to 127m affluent consumers a big win

Getting access to 127m affluent Japanese consumers was a huge achievement for all involved in the JEEPA trade deal. Japan has a rules-based culture and society and you can see how our animal traceability system, food safety and quality assurance scheme are exactly what they require for their consumers.

A baby born in Japan in 2019 can expect to live to 100 years old

While farmers will complain about complying with these standards, it’s a fundamental requirement to do business on the world stage and gives us a competitive advantage over many other countries. There is a lot of work to be done in Asia to make Ireland a viable proposition for consumers and not lose any of our provenance or identity through the complex chains of supply that exist.

It is interesting to hear the importance of the upcoming rugby world cup in terms of giving Ireland an identity

A baby born in Japan in 2019 can expect to live to 100 years old. This brings with it its own problems, with muscle degeneration and losing bone mass as people age. Traditionally as a nation they have eaten a low-protein and low-calcium diet so there could be an opportunity to promote lean meat and dairy products to an older generation to promote good health and trouble-free aging. It is interesting to hear the importance of the upcoming rugby world cup in terms of giving Ireland an identity.

Many Japanese consumers haven’t got a concrete image of Ireland and this is obviously one of the first steps to persuade consumers to buy Irish products. What will Japan deliver for Irish farmers? Any diversification in market destinations has to be good. Moving away from traditional markets closer to home is helping also to build the Origin Green brand around the world. While this is a long-term play, if there is more product sold at a higher price, then ultimately it benefits farmers.