On this day in 1988, Australian beef farmer prepared to increase their production to about 30,000 tonnes following an "historic" trade agreement was signed between Australia and Japan the day before. The agreement liberalised the Japanese beef market and opened an avenue for immediate increase in quotas by 1991.
Subscribe now for unlimited access.
or signup to continue reading
It was estimated that in the year after, Australian beef exports to Japan could reach at least 1 billion annually, more than the amount prior to the agreement. Dick Austin, chairman of the Australian Meat and Livestock Corporation, remarked the ball was now in the court of the farmers to deliver the product.
He said "we've got a level playing field now, it's up to us to play the game properly and make the best of it. It's up to us to deliver our product to this discerning market, perhaps the most discerning market in the world. I'm very confident we can do it - it's an enormous opportunity".
Austin also praised the efforts of the government in handling the negotiations, saying "if the government of this country had allowed its people to settle early, we'd have had shambles out of which we may not have risen again for a decade". Negotiations lasted more than six months.
A key element of the agreement was the removal of administrative processes by the government-controlled Livestock Industry Promotion Corporation that favoured US grain-fed beef over the leaner, traditionally grazed Australian beef. The agreement doubled the minimum quantity of chilled and aged beef Japan imports, which benefited Australia greatly as both of these items were major exports.
Today, Australia's share in the Japanese beef market has lowered from 51.3 per cent in 2018 to 40.1 per cent in 2021. The share reduction is attributed to increased competition in the space, particularly from the US, Canada, New Zealand and Mexico. The Japanese retail sector still has a strong demand Australian beef.
