Week 2: Wagyu Wagyu

"Japan fights to remain the king of wagyu beef"

What

In the early 2000s, the world was hit with a surge of what is commonly known as mad cow disease (BSE). In an attempt to save money, farmers put cow offal and other body parts into cow feed to boost the nutritional value of the feed as well as reuse the contents of the cow. With the feed exported to nearly every country, Japan was hit nearly the hardest with 36 confirmed cases of BSE. Japan's new Food Safety Commission, founded in 2003, has seen its efforts finally rewarded with many countries such as Taiwan opening up their doors to beef exports from Japan. Yet, Japan is struggling to maintain its exports of wagyu beef with many traditional farmers in Japan retiring and the new generation becoming more reluctant to work in the countryside. With higher demand and lower supply, Japan's exported beef prices are growing immensely with nearly prices as high as $280 per kilogram in Australia.

Who

Japanese wagyu beef farmers, especially those that live in Japan's wagyu breeding hub located on Kyushu are dwindling in numbers. At the same time, importers from Taiwan and Australia, those that have recently approved beef imports from Japan, have increased their demand for wagyu. In an attempt to increase supply, Japan has began allowing wagyu cows to be bred outside of Japan in larger areas such as Texas that can afford the land and resources needed to raise them.

Why

Because Japan has long been a fish-eating country, cattle was never used for food but rather for carrying goods. As a result, there exists a very small niche market for raising cattle which allowed Japan to sell high-end products in contrast to other countries' mass production of beef. This means that Japan's infrastructure for developing and selling beef has never expanded to a global scale. Without a long-term export strategy and a dedicated distribution and processing facility, demand for exported Japanese beef has reached new levels. These problems are further exacerbated with an aging population and Japan's extreme protection of what it considers one of its most famous foods. 

When

Within the past 8 years, the significant decrease in wagyu production has led to growing concerns about the future of the market. In the figure below, we can see the large drop in households raising beef cattle despite the growing export market:

Where

The article addresses concerns from Japan, Australia, and America, but other places such as Taiwan have begun importing wagyu.

How

Although Japan has not allowed other countries to access their wagyu, other countries have begun to follow suit in mimicking the product. By creating new breeds and fostering new ways of raising cattle, Australian David Blackmore has begun catering to wealthier individuals. With larger plots of land and growing numbers of beef imports from China, Australia and New Zealand are beginning to capitalize on the ever shrinking market in Japan.  

https://www.nature.com/articles/35096710

https://www.theguardian.com/world/2001/oct/03/japan.bse

https://www.dailymail.co.uk/news/article-5571335/Steak-exclusive-one-Australian-restaurant-Gold-Coast.html