New Trade Deal with Japan Could Increase Beef Prices
By: Monica Yantosh, everythinglubbock.com
Updated: January 31, 2013
On February 1st, Japan will increase their beef imports from the US. In
2006, the agreement was re-opened after closing in 2003 because of Mad
Cow Disease.
The 2006 agreement only allowed for Japan to import beef from the US at 20 months of age or younger. Now, the new trade agreement that will begin on the 1st will allow for beef aged 30 months of younger.
Weldon Warren, with Holy Cow Beef, says this will be a good thing for beef producers in the States. He also says it could take two to three years for the beef population to increase after the drought they recently suffered.
"It will increases prices at the dinner table for the average American family," said Warren. "I don't think any producer would turn away increased demand, increasing demand is always good for your product."
The day this new trade agreement goes into effect is the same day Cargill officially closes its doors in Plainview. One reason they cited for closing was the decrease in production because of the smaller herds caused by the drought.
"The 2011 - 2012 drought significantly impacted herds in the south, especially Texas, "It will help the meat processing plants like Cargill and they're a big company and they have other plants so they'll probably benefit from this, just not the Plainview plant."
Warren said it could take around two or three years before herds increase, and if the herds increase, consumers could see more back in their pockets.
"It drives up prices until the suppliers can meet that demand and then possibly bring the prices back down," said Warren.
The 2006 agreement only allowed for Japan to import beef from the US at 20 months of age or younger. Now, the new trade agreement that will begin on the 1st will allow for beef aged 30 months of younger.
Weldon Warren, with Holy Cow Beef, says this will be a good thing for beef producers in the States. He also says it could take two to three years for the beef population to increase after the drought they recently suffered.
"It will increases prices at the dinner table for the average American family," said Warren. "I don't think any producer would turn away increased demand, increasing demand is always good for your product."
The day this new trade agreement goes into effect is the same day Cargill officially closes its doors in Plainview. One reason they cited for closing was the decrease in production because of the smaller herds caused by the drought.
"The 2011 - 2012 drought significantly impacted herds in the south, especially Texas, "It will help the meat processing plants like Cargill and they're a big company and they have other plants so they'll probably benefit from this, just not the Plainview plant."
Warren said it could take around two or three years before herds increase, and if the herds increase, consumers could see more back in their pockets.
"It drives up prices until the suppliers can meet that demand and then possibly bring the prices back down," said Warren.
