A Break for Embattled Ranchers | Global AgInvesting

A Break for Embattled Ranchers

A Break for Embattled Ranchers

 

Japan has reversed a decade-long restriction of the importation of American beef that has contributed to the thinning of the U.S. cattle herd to its lowest level in 60 years.  Beginning February 1st Japan will allow meat imports from U.S. cattle that are 30 months old or younger rather than the current 20 month age limit.  Expanded meat shipments could begin arriving in Japan as early as mid-February.  A ban of U.S. beef was put in place in 2003 when Japan was the largest market for U.S. beef after a cow in Washington State was found to have bovine spongiform encephalopathy or mad cow disease, and eased in 2006 to allow for meat from cattle 20 months or younger.  Though this regulatory easing will help U.S ranchers, the industry still faces rising feed costs, drought conditions, general recession and changing consumer tastes.  The U.S. cattle herd has dropped from a high of 35.3 million in 1996 to 29.9 million in January 2012 and estimates are that this number will drop a further 1.6% in announcements next week.

 

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