
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, March 31, 1991                   TAG: 9103310078
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: MINORI, JAPAN                                LENGTH: Medium

JAPAN ENDING BEEF QUOTAS

Behind the lackluster Holstein market in Ibaraki state is the lifting of import quotas on beef and citrus, the latest action by Japan to ease U.S. criticism of its trade practices. Quotas remain on dairy and other agricultural products, and virtually all rice imports still are banned.

Japan has slowly opened its beef markets in response to U.S. pressure, increasing import quotas by 60,000 tons annually since 1988. Consumption has not kept pace, creating a stockpile of 110,000 tons of imported beef.

All beef quotas end April 1.

"Prices have been going down for months, and now's the worst time," said farmer Shigekazu Furusawa. "Things will probably settle down sooner or later, but who knows if that's going to be three months from now or six months from now? We're in business. We can't wait."

Lower-quality cuts of U.S. beef are expected to become cheaper with the end of quotas, but prices of better cuts may not fall until high tariffs are reduced over the next few years, a U.S. official said on condition of anonymity.

Beef prices in Japan can be three times those in the United States, but the difference varies by cut.

Many Japanese cattle raisers feel they can survive the competition by switching to wagyu, a more expensive breed unique to Japan.

Expensive restaurants pay $13 a pound for wagyu and serve it in paper-thin slices for Japanese-style hot pots. Consumers must pay $33 a pound for it.

To hear Japanese farmers talk, raising wagyu is an esoteric bovine art unattainable by foreigners. For instance, the famous Kobe-brand wagyu cattle in central Japan are fed beer and given daily rubdowns.

Japanese cattle farmers also are turning to the F-1, a cross between Holstein and wagyu. The hybrid, produced by artificially inseminating inexpensive cows with the semen of prized wagyu bulls, is far cheaper than paying about $4,300 for a 9-month-old wagyu calf.

U.S. beef exporters dismiss arguments that Japanese beef is superior and believe they have an excellent chance in the market.

Another U.S. official, speaking anonymously, predicted Japanese consumers will be broiling American steaks when the price of imported beef goes down. The U.S. Meat Export Federation said American cattle farmers are trying to develop more tender beef for Japan.

Supermarkets have scheduled sales on imported beef during the first week in April to welcome the end of quotas.

by CNB