Wagyu Calf Prices Continue to Fall…High Prices Drive Up Production Costs, and Farmers “Cannot Secure Income” for Shipment

Wagyu calves being auctioned at the Bungo Kusu Livestock Market in Kusu Town on September 11.

According to the Yomiuri Shimbun on September 28, trading prices of Wagyu calves continue to fall. The average price per head at the two calf markets in Oita Prefecture fell below 500,000 yen in September, following August. Compared to December 2018, when the price was the highest in the past five years, this is a significant drop of over 300,000 yen. The cost of calf production continues to rise due to the high cost of feed, combined with the high cost of oil and the strong yen. The farmers who ship calves are now completely in the red because they cannot generate enough income to cover their costs,” said one farmer. Some of the farmers who ship calves to the market are even voicing their dismay.

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Malaysia
Malaysia, located in the center of Southeast Asia, consists of the Malay Peninsula and part of Borneo Island. The total land area of the country is approximately 330,000 square kilometers, including the Malay Peninsula and Borneo Island portions, and about 60% of the country is covered with tropical rainforests.

The capital city of Kuala Lumpur and other cities have been modernized, but the country also retains a beautiful natural environment with clean seas, white sandy beaches, tropical rainforests, fascinating islands, and mysterious and majestic mountains.

Beef exports to Malaysia
Exports to Malaysia had been suspended since May 2010 due to an outbreak of foot-and-mouth disease, an infectious livestock disease, but resumed seven years later in 2017.

Exports are halal, meaning that there has been no outbreak of foot-and-mouth disease or BSE (Bovine Spongiform Encephalopathy) in the past year, as well as other conditions.

Currently, there are only two facilities in Japan that handle Halal wagyu beef exports to Malaysia.

Japan’s Beef Export Targets
Japan’s beef export value in 2022 was 51.3 billion yen, slightly lower than in 2021, but it is on an increasing trend, with a target of 160 billion yen in 2025 and 360 billion yen in 2030.

How do Malaysia’s exports rank?
The top three exporters are the U.S., Hong Kong, and Taiwan. Malaysia ranks ninth, with an export volume of 241 tons and a total export value of 1.349 billion yen in 2022.

Requirements for beef exports to Malaysia
(1) Beef must be derived from cattle born and raised in Japan.

(2) The beef must have passed the pre-slaughter and post-slaughter inspections conducted under the Slaughterhouse Law, and must not show any signs of contagious diseases at the time of slaughter.

(3) The beef must meet the Malaysian microbiological criteria in Attachment 2 and be free of pathogenic microorganisms and toxic substances.

(4) Carcasses must be stored in a refrigerator at 0°C to 4°C for a minimum of 24 hours and have a pH less than 6.0.

(5) Beef shall be packaged in a sanitary manner.

(6) Packaged beef is stored at or below 0 to 4°C (32 to 104°F) if refrigerated, or -18°C (-22°F) if frozen.

(7) Preventive measures are taken to ensure that the beef is free of preservatives, coloring agents, or other harmful substances that may endanger human health and that the beef is fit for human consumption.

(8) That beta agonists and their salts, nitrofurans and their metabolites, and chloramphenicol and their metabolites are not contained.

(9) Japan must have been clean of foot-and-mouth disease and BSE for 12 months prior to export.

(10) Japan has been certified as a negligible risk country for BSE by the International Animal Quarantine Bureau.

(11) Beef origin farms must be free of bovine campylobacteriosis, Johne’s disease, bovine rhinotracheitis, bovine tuberculosis, bovine viral diarrhea and mucocutaneous disease, and other communicable diseases for 12 months prior to export.

Certificates, etc. required for export
Invoice

Packing list

Meat hygiene certificate

Export Quarantine Certificate

Halal Certificate

For inquiries about exporting food products such as Sake, Whiskey, Wagyu Beef, etc. to Malaysia, please contact

info@kofukutrading.com

See you again in the next issue of K-blog.

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